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FAQs and Links

FAQs

What sets Longer Financial apart from other investment management firms?

Our mission is to provide the expertise to manage the entire investment process for our clients. By recognizing our clients as partners in the process and providing them with access to their investment team, we ensure that goals are identified, concerns addressed, and results communicated accurately. Through long-term personal relationships, we facilitate solutions for our clients’ investment needs.

  • Development of the Investment Process: At Longer Investments, we view our job as one of managing the investment process, rather than of selecting individual securities. Regardless of your ultimate financial goals, a clear-cut investment plan is an essential first step. Because every client has distinct investment objectives, we customize every portfolio. After a plan is adopted, but before trading begins, we provide a detailed policy statement that outlines the parameters for your individual portfolio. We strive to construct a portfolio that will accomplish the stated objectives at a risk level that is comfortable for you.
  • Professional Designations: Our team members have professional designations such as Chartered Financial Analyst (CFA). Continuing education and the attainment of such designations are encouraged for all members of the Longer Investments team.
  • Specialized Experience: The Longer Investments team has over 80 years of collective experience in the financial services industry.
  • Ethical Values: Longer Investments has built its growth and reputation on a foundation of trust, service, and results. We value the confidence our clients have demonstrated by choosing us to manage, preserve, and build their financial assets.
  • Independent Firm: As an independent investment advisor, we are personally responsible for the manner in which we conduct business. Our personal assets, our livelihood, and our reputation depend directly on how we treat clients.
Where will my assets be held?

To provide continuity and additional services, Longer Investments establishes a custodial account for each client. Accounts are set up to be administered through a nationally recognized brokerage firm or trust company. This service streamlines account administration. Client assets are not commingled. Rather, each client’s assets are held in an account that bears the client’s name and tax identification number. In this arrangement, the custodian recognizes the client as the owner of the portfolio assets and Longer Investments as the designated agent to conduct trades in a discretionary manner and to receive duplicate account information. Longer Investments is not authorized to withdraw funds from the account, except as authorized by the client for payment of quarterly management fees. Upon written authorization, Longer Investments may direct that distributions be made to the client or to other accounts that bear the client’s name.

What is the role of the custodian?

The custodian performs several services. These include, but are not limited to:

  • Safekeeping of securities
  • Timely settlement of trades
  • Notification of stock rights, calls, and conversions
  • Prompt collection of dividend and interest income
  • Monthly statements that include portfolio holdings, current market valuation, and a transaction summary
  • Continuity for client accounts in case the portfolio manager changes, the relationship with Longer Investments ends or the client wishes to administer the account personally
Which companies does Longer Financial primarily work with as custodians for client assets?

Longer Investments works primarily with two companies as custodians: Schwab Institutional and Northern Trust.  

  • Schwab Institutional: A division of Charles Schwab & Company, Inc., Schwab Institutional is a leading global provider of asset management and investment technology solutions. Schwab Institutional works with a select group of independent investment advisors, such as Longer Investments Inc.
  • Northern Trust: Northern Trust Corporation is a leading provider of asset servicing, fund administration, asset management, fiduciary, and banking solutions for corporations, institutions, families, and individuals worldwide. A financial holding company headquartered in Chicago, Northern Trust serves clients in more than 40 countries from offices in 18 U.S. states, Washington D.C., and 18 international locations.
Does Longer Financial pick individual stocks?

In keeping with your personal portfolio outline, we make individual security selections using the following guidelines:

Equity Investments

  • We research potential equity investments using our proprietary analytical models. Our equity research is designed to identify both small- and large-capitalization companies that consistently deliver above-average returns to shareholders, that favor a conservative capital structure, and that generate cash flow internally to fund growth. Longer Investments Inc. utilizes an analytical model to provide information on certain equity securities that Longer Investments has selected as potential investments for clients. Rather than researching the entire universe of equity investments, only those investments that meet Longer Investments’ preliminary criteria are reviewed using this model. The information gathered through this analytical approach is used as part of the firm’s overall analysis in determining which equity investments should be selected for a given portfolio.
  • Once attractive growth stocks have been selected, we subject them to several in-house valuation models to determine fair valuation, given their intrinsic characteristics. By carefully assessing each company’s historical trading patterns and valuations, relative both to the market and to the industry, we determine which stocks represent attractive investment opportunities.

Fixed-Income Investments

  • The primary challenges bond investors face are credit risk, inflation risk, and reinvestment risk. The fixed-income portfolios we manage are structured to address those risks, to maximize income, and to maintain flexibility for reinvestment opportunities.
  • For taxable accounts, we closely monitor comparative yield curves in the municipal and taxable bond markets. Our goal is to maximize aftertax income, given your unique state and federal tax circumstances.

Other Investments

  • From time to time, Longer Investments uses carefully chosen no-load mutual funds and Exchange-Traded Funds (ETFs) to diversify client portfolios into areas that require specialized knowledge. For example, such funds can be a way to participate in foreign markets, real estate investment trusts (REITs), utilities, and other areas for diversification purposes.

Additional disclosures

Limitations exist with any research method. No analytical model should be an investor’s sole source of information. We feel this proprietary research method sets a solid framework from which we can work.

How do you calculate performance?

In keeping with your personal portfolio outline, we make individual security selections using the following guidelines:

The accounting software used by Longer Investments is a professional portfolio management system licensed from Advent Software Inc. In annual performance reviews conducted for our clients, we calculate a time-weighted rate of return for each type of asset in the portfolio and for the total portfolio. This enables us to determine time-weighted returns by asset class both before and after management fees are paid. A composite return is prepared annually using discretionary accounts under management for the entire year. The composite represents accounts with varied investment objectives from the most conservative taxable account to the most aggressive non-taxable account. Once a prospective client’s needs and objectives are determined in a one-on-one interview, a sample of portfolios with similar objectives can be identified and the return history presented which would more clearly establish the returns that have been achieved in the past.   

The following are some of the guidelines Longer Investments incorporates when calculating performance:  

  • Use of accrual accounting
  • Use of time-weighted rates of returns, with valuations performed on a monthly basis
  • Inclusion of actual, fee-paying, discretionary portfolios in at least one composite
  • Presentation of performance records for all periods since the firm’s inception
Does Longer Financial work with clients other than individuals?

Yes. Longer Investments provides investment planning and management services to a wide variety of clients throughout the United States. Among them are individuals, family trusts, corporations, charitable trusts, and not-for-profit foundations.

How is Longer Financial compensated for investment management services?

Longer Investments is a fee-based investment advisor. Our compensation is based on the market value of the assets under management.

Does Longer Financial have a minimum account requirement for new clients?

Yes. The minimum size for an account that will hold individually selected securities is $1,000,000. This account size enables Longer Investments to properly diversify the holdings among selected industries and corporations and approved asset classes. However, smaller accounts are sometimes accepted after consideration is given to a number of factors, including, but not limited to client investment objectives, diversification, asset allocation needs, and relationship to existing clients. The average size of our clients’ accounts is approximately $2.5 million, with the largest being $27 million.

Is Longer Financial involved in preparation of tax documents or drafting of legal documents for clients?

Longer Investments does not prepare tax returns or legal documents; however, we will provide your attorney, accountant, and administrator with the information they need for estate management, taxes, and plan administration. We work to ensure the smooth functioning of your financial team.

Whom should I contact to schedule an appointment?

Please call 800-827-7710 or 479-443-5851 to schedule an introductory appointment. You may also e-mail us at [email protected].

Recommended Links

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Sites of Interest

Social Security
CFA Institute
AARP
The Weather Channel

Local Links

Walton Arts Center
University of Arkansas
Fayetteville Chamber of Commerce
Northwest Arkansas Regional Airport
State of Arkansas
Fayetteville Public Library
Crystal Bridges Museum of American Art

The links on the following pages are provided strictly as a courtesy for the convenience of our clients. Be aware that when you link to any other Web site listed, you are leaving the Longer Investments site. Longer Investments makes no representation as to the completeness or accuracy of information provided at these sites. Nor is Longer Investments liable for any direct or indirect technical or system issues or any consequences of your use of third-party technologies, sites, information or programs made available through such sites. As soon as you access one of these sites, you are leaving the Longer Investments Web site, and you assume all responsibilities and risks of using those sites.