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 Financial, 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 Financial team.
• Specialized Experience: The Longer Financial team has over 100 years of collective experience in the financial services industry.
• Ethical Values: Longer Financial 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.

To provide continuity and additional services, Longer Financial 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 Financial as the designated agent to conduct trades in a discretionary manner and to receive duplicate account information. Longer Financial 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 Financial may direct that distributions be made to the client or to other accounts that bear the client’s name.

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 Financial ends or the client wishes to administer the account personally

Longer Financial 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.

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 Financial utilizes an analytical model to provide information on certain equity securities that Longer Financial has selected as potential investments for clients. Rather than researching the entire universe of equity investments, only those investments that meet Longer Financials’ 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 Financial 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.

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

The accounting software used by Longer Financial 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 Financial 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

Yes. Longer Financial 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.

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

Longer Financial 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.

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