Contact Information Center for Responsible Investing "Kathy Leonard" 3025 47th Street, Suite D1 Boulder, CO  80301 303-449-5760 kathy@leonardfinancial.com - none listed - Who We Are I have worked as a financial consultant since 1983 at E.F. Hutton, Shearson, and Kemper Securities. Most of my work since then has been helping individuals, businesses, and nonprofits plan for their retirement, finance their children's education, monitor their existing investments, identify tax advantaged investments, and assist with inheritance and estate planning issues. I take a consultative approach, incorporating all aspects of the investment process into your decisions including risk, tax consequences, asset allocation, the need for liquidity and income, just to name a few. When I started The Center for Responsible Investing and Leonard Financial in May of 1993, it was my goal to incorporate my past experience with my new independence; to create a comprehensive, professional, and unbiased resource for individuals, businesses, and nonprofits. The Center for Responsible Investing was created to help those who wish to incorporate their social and financial goals. For decades people have contributed their time, energy, and money to issues they support. It is natural to ensure your investments are consistent with those beliefs. OUR EXPERIENCED TEAM In our office we have experienced staff, Joshua West and Krista Strohoffer. Joshua has his Series 6 and has worked at Merrill Lynch, First Interstate Bank, Invesco and Janus Funds. Krista has a Series 6 as well as a Series 7. Her background is in the insurance and accounting industries with Prudential Securities. Both are always happy to help you. FIRST AFFIRMATIVE FINANCIAL NETWORK, LLC Because of my commitment to social investing, I am a member of First Affirmative Financial Network, LLC (FAFN), a national group of financial professionals dedicated to helping clients meet their financial goals, while supporting a just, sustainable and peaceful society. FAFN manages over $300 million for more than 7000 clients. COMMUNITY INVOLVEMENT I have been a member of the Social Investment Forum (SIF) for the last eleven years. The SIF is a national organization of professionals dedicated to promoting the concept and practice of socially responsible investing as an effective way to make financial and business decisions. I have been very active in my community. In 1991, I was a founding member of the Environmental Council at the Boulder Chamber of Commerce. The Council has promoted education on the use of recycled products, energy efficiency, alternative transportation, waste reduction, and sustainable development. I am a founding member of the Colorado Chapter of Business for Social Responsibility. We are helping change the way companies do business, by demonstrating that doing good is good for business. In 1997, I served as the chair for the Colorado Chapter, and have been on the board from 1996 to 1998. I have also been a volunteer at the Boulder County AIDS Project (BCAP). BCAP has been an invaluable resource to many of my friends, and anyone in our community that has been touched by AIDS. Securities offered through a registered representative of Walnut Street Securities, Inc. (WSS), member NASD and SIPC. First Affirmative Financial Network (FAFN) is a registered investment advisor with the SEC. Leonard Financial, the Center for Responsible Investing and FAFN are financial services firms and are not affiliates or subsidiaries of WSS. The SIF, the Environmental Council at the Boulder Chamber of Commerce, the Colorado Chapter of Business for Social Responsibility and BCAP are not affiliates or subsidiaries of WSS. How We Can Work Together How I work with my clients is driven by their preference. Our initial consultation is without fee or obligation. The first option is a fee, based on the assets under management. The amount of money under management and the level of service needed determine the fee. I use either no load mutual funds or private money managers. The fee varies from account to account, but is usually in the range of 1.5%-2.5% per year. The second option is to work on a commission basis. There is usually no additional charge for meetings, proposals, or ongoing maintenance, but the investments will have a cost associated with them. Walnut Street Securities is my broker dealer. They use Pershing to process all of their trading. I also work with Charles Schwab. I see this as the best of both worlds; we are an independent firm committed to providing our clients with the best investment advice. In addition, I am affiliated with a large firm, which assures access to a wide variety of investment options, and all of the account services you expect. We also provide consulting on an hourly basis. The fee is $125 per hour. My account minimum is $300,000 for all accounts except those I work with on an hourly basis. This is a guideline. I would be happy to talk to you in more detail regarding the thought process behind it, and the potential for flexibility. There is no account minimum for hourly clients. WHY HIRE A CONSULTANT? 1. Experience and knowledge of the process and issues. 2. Third party objectivity and independence in manager and fund selection and monitoring. The consultant works for the client, not the money manager or the fund and will not hesitate to fire a manger or sell the fund if necessary. 3. A consistent, systematic, yet personalized process to evaluate and identify managers and funds that meets your objectives. 4. The use of multiple managers and funds resulting in a diversified portfolio that can help reduce risk. 5. The creation of an Investment Policy Statement (IPS). The IPS outlines the financial and social standards, guidelines and expectations for your account. It is amended as these change. 6. A consultant will work with you to help ensure compliance with necessary fiduciary responsibilities. 7. Flexible and consolidated performance reporting EFFICIENCIES: Strategic Asset Allocation Strategic asset allocation is based on the belief the market can not be timed. Academic studies demonstrate asset allocation and a disciplined investment approach have a far greater impact over the long term than any other factor. Once you have determined the appropriate asset allocation, that weighting will be MAINTAINED through periodic portfolio rebalancing. This is based on the premise it is impossible to determine which asset class will be in or out of favor. The turnover should be low and thus more tax efficient in a taxable account. THE PROCESS INCLUDES 1. Identify investment objectives and risk profile through the use of a confidential questionnaire. 2. Determine investment categories and weightings within those categories through the development of the asset allocation policy. 3. Create the investment policy statement. 4. Select mutual funds. We are looking for funds with a high asset class correlation, below average expense ratio, superior investment results, and a clear, consistent process and discipline. We use both quantitative and qualitative analysis. For more complete information about specific securities products, including a current prospectus that explains charges and expenses, please contact your registered representative. Please read the prospectus carefully before investing. 5. Ongoing portfolio management and due diligence of mutual funds. 6. Quarterly performance reporting. 7. Periodic portfolio rebalancing. On the first $50,000 @ 1.50% On the next $150,000 @ 1.40% On the next $300,000 @ 1.10% On the next $250,000 @ .75% There is a minimum annual fee of $200 per account DYNAMICS: Tactical Asset Allocation This approach shares the belief that asset allocation is a key element of portfolio construction and performance. The difference is that since the performance of asset classes varies over time, the goal is to allocate funds into the asset classes showing relative strength. This is done through the use of daily trend and market risk analysis. We monitor indicators such as interest rates, earnings, yield, price movements and relative strength. This is an active, dynamic process resulting in higher turnover and the resulting tax consequences in taxable account. THE PROCESS INCLUDES: 1. Identify investment objectives and risk profile through the use of a confidential questionnaire. 2. Determine investment categories and weightings within those categories through the development of the asset allocation policy. 3. Create the investment policy statement. 4. Select mutual funds. We are looking for funds with a high asset class correlation, below average expense ratio, superior investment results, and a clear, consistent process and discipline. We use both quantitative and qualitative analysis. 5. Ongoing portfolio management and due diligence of mutual funds. 6. Quarterly performance reporting. 7. Regular and active portfolio management. on the first $200,000 @ 1.75% on the next $300,000 @ 1.55% on the next $250,000 @1% There is a minimum annual fee of $700 per account. FAIRWAYS: Private Money Management A comprehensive, customized, fee based, consulting service utilizing a systematic process that provides access to the nations leading institutional portfolio managers. This program provides a custom portfolio of stocks and bonds beyond what is available with mutual funds. You have the ability to influence the composition of the portfolio and the taxation of the account. THE PROCESS INCLUDES: 1. Identify investment objectives and risk profile through the use of a confidential questionnaire. 2. Experienced and objective evaluation of money managers. 3. Create the investment policy statement. 4. Select the money manager(s). We are looking for managers with a high asset class correlation, superior investment results and service to investors, and a clear, consistent process and discipline. We use both quantitative and qualitative analysis. 5. Ongoing portfolio management and independent due diligence of managers. 6. Quarterly performance reporting. 7. Regular and active portfolio management. On the first $250,000 @ 1.95% On the next $250,000 @ 1.85% On the next $ 500,000 @ 1.60% On the next $1,000,000 @ 1.40% On the next $1,000,000 @ 1.20% Above $3,000,000 is negotiated and not to exceed 1.20 % In Closing If you require further information or would like to set up an initial consultation, please e-mail or call our office. Fee-based advisory services offered through FAFN are offered independently of WSS. Investment principal and return may fluctuate with market conditions such that shares may be worth more or less when redeemed. The information on this web page is not a complete description of the securities, services or products referred to in these materials. This is not an offer to buy or sell or a solicitation of an offer to buy or sell the securities mentioned herein. Nothing in these materials constitutes financial or business advice. All expressions of opinion reflect the judgement of The Center for Responsible Investing as of this date and are subject to change. The information has been obtained from sources considered to be reliable, but we do not guarantee their accuracy.