Part 2A of Form ADV: Firm Brochure
Winslow Financial LLC
222 Wisconsin Ave, Suite 214
Lake Forest, IL 60045
February 15, 2016
This brochure provides information about the qualifications and business practices of Winslow Financial LLC. If you have any questions about the contents of this brochure, please contact us at 847-217-0366. The information in this brochure has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority.
Additional information about Winslow Financial LLC also is available on the SEC’s website at www.adviserinfo.sec.gov. Registration does not imply a certain level of skill or training.
Table of Contents
Winslow Financial LLC has been in business since 2005. Daniel E. Winslow is the principal owner.
Investment Advisory Services
Winslow Financial LLC (Winslow) is an investment adviser registered with
the State of Illinois. Winslow provides investment advisory services to
individuals, trusts, estates, charitable organizations, corporations and
retirement plans. The services offered by Winslow are described below.
Winslow offers financial planning services, on a comprehensive or limited
basis, depending upon the client’s wishes. Fees for financial planning
services are billed at an hourly or fixed rate.
Comprehensive financial planning includes a review of all aspects of a
client’s current financial situation, including, but not limited to the following
Estate and charitable giving planning;
Tax planning; and
Capital needs planning
Completion of a comprehensive plan which includes all of the above
components generally takes 3-6 months to complete, and involves several
meetings with the client, other family members as appropriate, and other
professionals such as accountants and attorneys, review of related
documents and data supplied by the client. Upon completion, an
implementation schedule is reviewed with the client to determine which steps
will be pursued, and with whom the steps may be accomplished. The client is
under no obligation to utilize additional services of Winslow, and is under no
obligation to implement the advice or plan. Clients may to choose all or
certain components of advice and recommendations and can implement the
recommendations through the service providers of their choice.
Winslow Financial LLC provides investment management services based on the individual needs of the client. Through personal discussions, goals and objectives are established based on a client’s particular circumstances. Winslow assists the client in developing the client’s personal investment policy, and then creates and manages a portfolio based on that policy.
Winslow Financial LLC develops portfolios based upon a client’s goals, objectives, investment time horizon and risk tolerance, as well as their core financial related values. Investment strategies generally include long-term and short-term purchases depending upon the individual needs of the client. Winslow Financial LLC uses asset allocation, or spreading investments among a number of asset classes and sectors (domestic stocks vs. foreign stocks; large cap stocks vs. small cap stocks; corporate bonds vs. government securities) for most client accounts.
Clients may choose investment restrictions.
Winslow Financial LLC does not participate in any wrap fee arrangements at this time.
Winslow Financial LLC does not manage client assets on a discretionary basis at this time. Winslow Financial LLC manages $27.6 million on a non-discretionary basis as of 12-31-2015.
Fees and Compensation
Fees may be charged on an hourly or fixed fee basis. Once determined, the
exact fee arrangement is set forth in the Financial Planning Agreement.
Hourly fees range from $50 to $400 per hour based upon the knowledge and
experience of the individual providing the work.
Fixed fees are determined by estimating the number of hours to be spent
preparing the plan and then quoting a fixed price. Total costs for financial
plans, whether per hour or on a fixed basis, may range from $250 to as much
as $40,000 or more. There is no typical plan, as plans are customized to the
specific needs of the client.
Investment Management fees are payable quarterly and in advance, with the
initial invoice calculated based upon the fair market value of the account,
including cash at the time the agreement is executed through the end of the
current quarter. Thereafter, fees are calculated based upon the market value
of the portfolio as of the last business day of the previous quarter. Investment
Management fees are billed as a percentage of assets under management
ranging from 0.00% to 1.50% annually, depending upon the nature and
complexity of the services. Fees are deducted from the account managed unless arrangements are made in advance for direct billing. All fees are negotiable.
In certain circumstances, fees, account minimums and payment terms are
negotiable within reason. Related accounts may be linked for purposes of fee calculation if all parties agree; meaning certain accounts, approved by Winslow may be grouped for
fee calculations. The fee charged is calculated as described above, and is not charged on the basis of a share of capital gains upon or capital appreciation of the funds or
any portion of the funds of an advisory client.
All fees paid to Winslow for investment advisory services are separate and
distinct from the fees and expenses charged by mutual funds or exchange traded funds to their shareholders. These fees will generally include a management fee, other
fund expenses and a possible distribution fee. Mutual funds purchased by
Winslow for a client account will be executed at NAV. Accordingly, the client
should review the prospectus of a mutual fund or exchange traded fund regarding fees charged by the funds in conjunction with fees charged by Winslow to fully understand the total amount of fees to be paid by the client, and to thereby evaluate the advisory services being provided.
The custodian may have other fees, such as annual account fees or brokerage trading fees. Winslow Financial LLC is not a broker/dealer and has no registered representatives.
A client agreement may be canceled at any time by either party, for any
reason upon written notice. Upon termination of any account, any prepaid,
unearned fees will be promptly refunded and any earned, unpaid fees will be
due and payable.
Performance-Based Fees and Side-By-Side Management
Winslow Financial LLC does not do Performance-Based Fees or Side-By-Side Management at this time.
Types of Clients
Winslow Financial LLC has no minimum account size. Winslow Financial LLC advises individuals, families, estates, trusts, corporations and retirement plans.
Methods of Analysis, Investment Strategies and Risk of Loss
Winslow Financial LLC uses multiple methods of analysis and investment strategies. Understanding the national and global economic situation and forecasts and demographic trends is key to forecasting. Modern Portfolio Theory, including diversification and efficient portfolios are fundamental. Credit analysis works to ensure risk premiums commensurate with the risk of default for fixed income securities are secured.
Asset allocation explains 90% of portfolio performance over time for an efficient portfolio, so suiting the asset allocation to client needs is key.
International investments are sought for clients with an appropriate risk tolerance.
Generally portfolio trading is lower and reflects changes in the economic situation such as changing yield curves, inflation expectations and the cycle of the stock market.
Investing in securities involves risk of loss that clients should be prepared to bear. There are material risks to all stock investments, such as temporary or permanent declines in value. Fixed income (bond) investments may decline in value due to default risks or changing interest rate or inflation environments.
Winslow Financial LLC has no disciplinary information.
Other Financial Industry Activities and Affiliations
Winslow Financial LLC and its management persons are not registered and do not have an application pending to register, as a broker-dealer or a registered representative of a broker-dealer.
Winslow Financial LLC and its management persons are not registered and do not have an application pending to register, as a futures commission merchant, commodity pool operator, a commodity trading advisor, or an associated person of the foregoing entities.
1. Winslow Financial LLC generally uses Fidelity as the broker-dealer and custodian, municipal securities dealer, or government securities dealer or broker for its clients. Fidelity fees are fairly small and competitive for the services provided. Fidelity pays no fees to Winslow Financial LLC and clients may direct that other providers are used.
2. Winslow Financial LLC has no relationship with any investment company or other pooled investment vehicle (including a mutual fund, closed-end investment company, unit investment trust, private investment company or “hedge fund,” and offshore fund)
3. Winslow Financial LLC has no relationship with any other investment adviser or financial planner
4. Winslow Financial LLC has no relationship with any futures commission merchant, commodity pool operator, or commodity trading advisor
5. Winslow Financial LLC has no relationship with any banking or thrift institution
6. Winslow Financial LLC sometimes has management persons provide accounting services to clients.
7. Winslow Financial LLC has no relationship with any lawyer or law firm
8. Winslow Financial LLC has no relationship with any insurance company or agency. Winslow Financial LLC sometimes has management persons act as an insurance agent for clients. If so, the commission relationship is disclosed to the client.
9. Winslow Financial LLC has no relationship with any pension consultant
10. Winslow Financial LLC has no relationship with any real estate broker or dealer
11. Winslow Financial LLC has no relationship with any sponsor or syndicator of limited partnerships
Winslow Financial LLC does not recommend or select other investment advisers for clients at this time.
Code of Ethics, Participation or Interest in Client Transactions and Personal Trading
Winslow Financial LLC has a Code of Ethics and will provide it to clients upon request.
Winslow Financial LLC does not recommend or have related person recommend to clients, or buy or sell for client accounts, securities in which Winslow Financial LLC or a related person has a material financial interest.
Winslow Financial LLC or its management and personnel do invest in the same securities (or related securities, e.g., warrants, options or futures) that Winslow Financial LLC or a related person recommends to clients. This aligns our interests with clients. Our trading volume and timing of trades is low enough and different enough that client trades are not affected by our trades. We are a very small part of a very large stock and bond market.
Winslow Financial LLC generally uses Fidelity as the broker-dealer and custodian, municipal securities dealer, or government securities dealer or broker for its clients. Fidelity broker and custodian fees are fairly small and competitive for the services provided. Many trading transactions have no fees. Fidelity pays no fees to Winslow Financial LLC and clients may direct that other providers are used.
Winslow Financial LLC receives research and software from Fidelity. This is not tied to any client securities transactions or client commissions. The software is used for all Fidelity accounts. Research benefits all clients.
Winslow Financial LLC does not cause clients to pay commissions (or markups or markdowns) higher than those charged by other broker-dealers in return for soft dollar benefits (known as paying-up). Winslow Financial LLC does not acquire any products or services with client brokerage commissions.
Winslow Financial LLC does not receive any client referrals from Fidelity.
Winslow Financial LLC does not aggregate the purchase or sale of securities for various client accounts. Our trading frequency and volume are too low and the non-discretionary basis of the accounts is not amenable to trade aggregation. Since most client accounts have zero to $100 in brokerage fees per year, this does not seem to be a significant issue. It is possible that a client with a large account could run somewhat higher fees.
Review of Accounts
Winslow Financial LLC reviews accounts periodically, generally quarterly for smaller accounts and more frequently for larger accounts by a registered investment advisor. Significant changes in the economic environment or stock or bond markets may trigger account reviews.
The custodian of client assets provides written monthly reports and daily internet access to account values. Winslow Financial LLC may provide supplemental analysis of performance based upon client request and client account balances.
Client Referrals and Other Compensation
Winslow Financial LLC does not receive sales prizes or other benefits from anyone who is not a client.
Winslow Financial LLC or a related person does not directly or indirectly compensate any person who is not our supervised person for client referrals.
Winslow Financial LLC does not take custody of client assets.
A qualified custodian sends quarterly, or more frequent, account statements directly to clients. Clients will receive account statements from the broker-dealer, bank or other qualified custodian. Clients should carefully review those statements.
Winslow Financial LLC only does non-discretionary authority for client investments at this time.
Voting Client Securities
Winslow Financial LLC does not vote client securities. Clients will receive their proxies or other solicitations directly from their custodian or a transfer agent. Client may contact us via email or telephone with any questions.
Winslow Financial LLC does not require or solicit prepayment of more than $1,200 in fees per client, six months or more in advance and therefore is not providing a balance sheet.
Requirements for State-Registered Advisers
EDUCATION AND BUSINESS BACKGROUND
Daniel E. Winslow
Northwestern University, BA Economics
Winslow Financial LLC 2005 - Present
Managing Member and Chief Compliance Officer
Trustmark Insurance Company 1987-2005
Vice President and Actuary 1992-2005
Head of Actuarial Department and Group Underwriting
Western and Southern Life Insurance Company 1985-1987
Professional Designations and Licenses:
CPA, Certified Public Accountant
FSA, Fellow of the Society of Actuaries
Illinois Insurance Agent
OTHER BUSINESS ACTIVITIES
Mr. Winslow is an FSA and CPA. Mr. Winslow does tax preparation and
accounting work for some clients and may perform actuarial consulting for
insurance companies. Mr. Winslow is paid on a project basis for consulting.
Mr. Winslow is licensed and registered with the insurance department of the
State of Illinois. He may enter into agreements with various insurance
companies to provide fee based variable annuities, variable life, health policy
products; he will not receive any commission compensation from the
insurance companies. In addition, Mr. Winslow may provide fixed insurance
products, such as whole life, term life, and health; he will receive a
commission from the insurance companies.
EDUCATION AND BUSINESS BACKGROUND
Vanderbilt University, BA, Mathematics and English, 1990
Georgia State University, MAS, Actuarial Science, 1994
Actuarial Consultant Associate Director, Optum
Advanced Analytics Consultant, HMC
2009 - 2013
Director of Data & Actuarial Services, Valence Health
2008 - 2009
Associate Actuary, HCSC (BCBS of IL, TX, NM, & OK)
2002 - 2008
Actuarial Consultant, PVI, 2000 - 2002
Professional Designations and Licenses:
FSA, Fellow of the Society of Actuaries
OTHER BUSINESS ACTIVITIES
Mr. Herzfeld is an FSA and performs actuarial services for consulting companies, insurance companies, and health providers. Mr. Herzfeld is paid for these actuarial services. Mr. Herzfeld may work for other firms.