The Rockport Group at Morgan Stanley Smith Barney

The Rockport Group at Morgan Stanley Smith Barney

2902 Traylor Boulevard Suite 100, Rockport, Texas 78382 800-359-5122 / Toll-Free 361-729-2201 / Main 361-790-5494 / fax fa.morganstanleyindividual.com/therockportgroup

The Rockport Group at Morgan Stanley Smith Barney When it comes to wealth management, many clients look for a proven track record, a dedication to success, a sense of continuity, commitment, and the tenacity to get things done properly. The Rockport Group at Morgan Stanley Smith Barney considers these the hallmarks of our success. While we have an enviable history of helping our clients achieve their goals, our point of difference is perhaps best summed up by the personal histories of our Group s founders, John P. Jackson and Michael Farah. Prior to entering the financial services world, both founders dedicated their lives to running and managing substantial businesses. In working through the challenges of running a business, they learned the importance of personal skills such as preparation, perseverance, adaptability, agility and mental toughness in short, to be ready for whatever circumstances throw at you. Clients appreciate our approach to wealth management and our family approach to client service while delivering access to world class resources, customized advice, broad experience, highly credentialed professionals and a deep rooted history of assisting clients. The Rockport Group 3

Meet the Professionals John P. Jackson, CIMA, CWS Senior Investment Management Consultant Senior Vice President Wealth Advisor Left to right: Pat Johnson, Michael Farah, John P. Jackson, Chuck Adam, Karen R. Mella A fifth generation Rockport native, John is an experienced businessperson. His first career was with his family s three-generation seafood business. After liquidating that business in 1991, John began his second career in 1992 with Dean Witter, which later became Morgan Stanley and is today Morgan Stanley Smith Barney. He has earned numerous distinctive titles and designations including Senior Vice President, Wealth Advisor, Certified Investment Management Analyst (CIMA ), Senior Investment Management Consultant, Estate Planning Consultant and Senior Portfolio Manager. He also earned the Accredited Investment Fiduciary (AIF ) designation from the Center for Fiduciary Studies. John is active in his community, and has served in leadership capacities with The Education Foundation, 4 Morgan Stanley Smith Barney

The Margaret Sue Rust Foundation, Texas A&M Kingsville Foundation, Boy Scouts of America Executive Board (South Texas Council), and Texas A&M Health Science Center Coastal Bend Advisory Board. He is a member and has served in various capacities at First Presbyterian Church. John has also been actively involved with Young Life of Rockport, Rockport-Fulton Chamber of Commerce, Rockport Art Association, Odyssey After School Enrichment Program, Texas Maritime Museum, Aransas County Historical Society, 100 Club of Aransas County, Javelina Alumni Association, Aransas First, Rockport Rotary Club, Corpus Christi Symphony Orchestra, Investment Management Consultants Association (IMCA) and Association of Professional Investment Consultants (APIC). John s list of past honors includes Eagle Scout, Collegiate Academic All American (football), Chamber of Commerce Citizen of the Year, The Education Foundation s Lifetime Achievement Award, Javelina Alumni Association s Distinguished Alumnus (Texas A&M University-Kingsville), Rotary Club Volunteer of the Year, South Texas Council Boy Scouts of America-Fundraising Hall of Fame 2010 Inaugural Member, and the Silver Beaver Award in Scouting. John and his wife Debbie live in Rockport and have been married for more than 34 years. They have grown children and young grandchildren. John enjoys being with his family, skiing, scuba diving, hunting, fishing, golfing, spending time at his ranch, and volunteering for non-profit organizations. He attended Texas A&I University, graduating Summa Cum Laude in 1973 and with an MBA in 1975. Michael Farah, CIMA, CMFC Senior Investment Management Consultant Financial Advisor Michael began his career with Morgan Stanley Dean Witter in early 2000. He is licensed by the National Association of Securities Dealers as a General Securities Representative. He is also a Registered Investment Advisor Representative and is licensed with the State of Texas Insurance Department to offer group, life, health, and variable annuity and insurance solutions. In addition, he has earned several distinctive titles including Senior Investment Management Consultant and Certified Investment Management Analyst (CIMA) conducted jointly by Morgan Stanley Smith Barney and The Wharton School of Business, a leading finance school in the country, and Chartered Mutual Fund Counselor (CMFC). Michael holds a BBA with emphasis in finance from Texas A&M University, Corpus Christi. Michael has been a The Rockport Group 5

resident of South Texas for more than 30 years, where he is involved in numerous community organizations. He is an active member with the local property homeowners association, St. Paul s Catholic Church, Laguna little league, the Rockport-Fulton Area Chamber of Commerce and the Investment Management Consultants Association (IMCA). Michael enjoys spending time with his family, fishing, hunting and woodworking. He and his wife Analisa have four children, Michael, Christopher, Paige and Matthew. Pat Johnson Senior Registered Client Service Associate Pat has multifaceted duties, which comprise managing the team s overall administrative and operational functions and implementing systems that focus on providing excellence in client service and operations. She plays a key role in client communications. Pat moved to Texas in 1995 from Charleston, South Carolina. She has over 31 years experience in the financial services industry. In Charleston, she was employed with the Robinson-Humphrey Company / Salomon Smith Barney. Pat and her husband Van have one son, Michael. She enjoys spending time with her family and friends. Her hobbies include walking, running and reading. Chuck Adam Vice President Estate and Insurance Planning Specialist Chuck began his career with the CIGNA Group in Houston. He worked, and was trained, in CIGNA s Advanced Planning unit from 1987 to 1990. CIGNA s Advanced Planning unit was designed to work with affluent individuals whose families faced significant erosion from estate taxes. This involved all manner of sophisticated planning techniques to help limit estate taxation. In 1990 Chuck was offered a position with PaineWebber in their Houston regional office. Primarily, Chuck was tasked with working with the investment executives in the Houston area in relation to their clients estate tax problems. Eventually, the scope of Chuck s involvement was widened when he was put in charge of estate planning for the entire Southern region of PaineWebber in 1993. In August of 1996 Chuck left 6 Morgan Stanley Smith Barney

PaineWebber to work with Smith Barney in Houston. At Morgan Stanley Smith Barney, the direction of Chuck s work is also with affluent individuals and helping them reach their estate distribution objectives. Chuck covers the Houston, Austin, San Antonio and South Texas branches for Morgan Stanley Smith Barney. Karen R. Mella Marketing Specialist KRM Consulting Karen joined The Rockport Group team as a marketing consultant in 2006. Her primary responsibilities include the development and implementation of client focused appreciation initiatives and a variety of activities to heighten the awareness of the Team in the South Texas area. Prior to moving to Rockport, Karen spent over 15 years in the communications profession in San Antonio, primarily for small publicly traded companies. Her passion for the Rockport-Fulton community is evidenced by her many volunteer activities in our community. She serves on various local boards and committees including the Rockport Fulton Chamber of Commerce, The Education Foundation, Rockport Center for the Arts, Aquarium at Rockport Harbor, Allegro Women s Club and Garden Club and the Rockport Rockettes. She is a graduate of Leadership Aransas County Class XII. KRM Consulting was named the Rockport Fulton Chamber of Commerce s 2010 Small Business of the Year. Karen graduated with highest honors from Texas A&M University Corpus Christi (BBA) in 1994. The Rockport Group 7

A Consultative Process Both individual and institutional investors require a well-conceived, carefully chosen plan with defined long-term goals. Our wealth advisory consultative process can help design a cohesive plan for the future that includes: Step 1: Discovery Before our first meeting, we suggest that you take a fresh inventory of your assets, including the location and worth of each asset. At that meeting, we will begin by exploring many questions to try to capture your goals and what you want to accomplish. We will talk about you, your specific needs, what worries you and what you are passionate about. Our conversation will also explore your values, key relationships, total assets, preferred manner of communication, as well as identify the other professional advisors with whom you work. That way, our team can help you determine how all the facets of your financial situation could dovetail effectively. Step 2: Analysis and Recommendation Based on our discussion, the team will analyze your financial information, including liabilities, and assess risks and identify potential threats to financial health. We will present you with a personalized plan that can help address your income and cash flow needs, borrowing requirements, asset protection, retirement planning, wealth transfer, philanthropy and other areas beyond investment management. By taking the additional time to carefully review these topics, we hope to make you comfortable with proposed investment strategies and service providers before implementing your plan. Step 3: Implementation After you have approved your plan, we will work closely with you to implement it, bringing an objective approach, and paying special attention to how the various parts of your plan can affect, enhance and integrate with each other. Wherever appropriate, we will suggest seeking additional, in-depth advice on particularly complex issues we have identified, including family-dynamics, estate planning, lending, tax planning strategies and more. Whatever approach we decide on, the team will help you keep your investments on track. Step 4: Reviewing Objectives We believe that ongoing communication is a vital component of our relationship, and we are committed to keeping abreast of your changing financial needs. Your financial documents provide the foundation for regular meetings, and the team will review your portfolio at your request and whenever you feel that your circumstances have changed. We will then seek to make certain that your assets are positioned according to your evolving needs. If necessary, we will suggest adjustments to your strategy to address changes in your circumstances or your objectives. 8 Morgan Stanley Smith Barney

For Life s Most Important Goals With an experienced professional and the right resources, reaching your most important goals can be less challenging and more rewarding. We are ready to help you meet your goals, by combining our insight into your needs with the resources of Morgan Stanley Smith Barney. Setting a confident course Thorough, thoughtful planning planning that analyzes where you are as well as where you want to go is the most important step in establishing a path to your goals. We will work with you to explore and define your objectives and needs, and then structure a plan that is uniquely your own. Retirement planning Education planning Estate planning Multigenerational planning Managing the rewards of success Managing an investment portfolio should be a consultative, disciplined process that balances your attitudes and goals as an investor with careful analysis of the financial markets and the risks and opportunities they hold for you. You can rely on us for objective strategic advice in structuring your portfolio and for careful analysis of any investments we consider together. Asset allocation Investment management Traditional investments Alternative investments Separately managed accounts

Shaping your retirement Together, we can work to make decisions that could help you move toward the retirement you expect. Whether you are building retirement wealth or making the transition to generating income from your assets, we can help you develop and implement a strategy based on your vision of retirement. IRAs: Traditional Roth IRA rollovers Roth conversions Building a unique legacy Estate planning typically brings together the dimensions of life: personal, family, financial and charitable. We will work with you to understand the connections between your life and legacy goals, and work with your accountant and attorney to help you develop a strategy to position your portfolio appropriately. Educating new generations Helping to meet the education costs of children and grandchildren may be one of the most attractive and personally fulfilling investment opportunities available to you. We can help you access appropriate investment vehicles 529 plans and custodial accounts. Giving back through philanthropy Many successful individuals seek opportunities to support cultural and educational institutions, and nonprofit organizations and activities. Properly undertaken, charitable giving can provide planning flexibility and benefits for you. We can help you analyze and implement a strategy that rewards you while it benefits causes you care about. Charitable lead and remainder trusts Family foundations Donor advised funds Strengthening your business The links between business ownership and personal wealth are many and complex. Whether your objective is to grow your business, realize its value through a succession strategy or sale, or maintain family ownership by the next generation, we can examine your alternatives in light of both business and personal objectives. And, should circumstance require it, we can use the access to banking services of Morgan Stanley Smith Barney. Lending services Cash management Retirement plans Strategic consulting and transactions Succession planning Insurance Protecting your wealth Insurance can play a critical role in virtually any comprehensive financial strategy, helping you to protect the value of your assets, protect your income and your family s financial security even perform important functions in a business succession or estate plan. We can help you analyze your current insurance portfolio and work to update your coverages to fulfill personal and strategic goals. Life and disability income insurance Life insurance trusts Key-person insurance Meeting current liquidity and banking needs Managing personal cash and securing liquidity for personal needs and opportunities are the day-to-day aspects of implementing a financial strategy. We can help you meet your personal cash management and borrowing needs while thinking strategically about how approaches may affect current and longterm costs and taxes. Home finance Lending services Debt restructuring Securities-backed loans The Rockport Group 11

Risk Management The ups and downs of the markets is just one kind of risk but so is not protecting my assets and my family. How do I protect what I care about most? Retirement When I retire, it will affect just about everything that matters: my lifestyle, my company, my family. Is there a way to plan for retirement that takes it all into account? Integrated Planning Decisions about both assets and liabilities need to be made in the framework of important life goals. What steps are also the most tax efficient? How can a strategic approach to banking and lending simplify my financial life and maximize the value of what I own? Education Funding Will I be able to pay for a good education for my children and my grandchildren? Business Strategies How do I manage my personal wealth with so much tied up in my company? Investment Management I have so many goals and priorities. How can one investment strategy balance them all? Liquidity I can predict some expenses, but others I know I can t. How can I plan to have the cash I need? You Benefit From a Profound Understanding of the Full Range of Wealth Management Needs Estate Planning Making sure my estate goes to the people and organizations I care about is a priority. How do I transform my assets into a legacy? Charitable Pursuits The charities I support are like extended family. How do I maximize the good I can accomplish?

A CULTURE of EXCELLENCE OvER ThE years, you have made many financial decisions. OnE in particular is LikELy TO have A LAsTing impact On your well being And ThAT Of your family: ThE ChOiCE Of A financial AdvisOR. Investors who choose Morgan Stanley Smith Barney often tell us that their reasoning is simple. They choose a Financial Advisor and a firm that mirrors the values propelling their own success: a commitment to perform at the highest level for their clients, with no shortcuts, compromises or excuses. a strong, steady force in a changing industry CEO and senior team with deep wealth management experience 130 years of combined experience 900 global locations 18,000 financial advisors 7 million client accounts $1.5 trillion client assets Unparalleled e xperience. Drawing on many years of experience, Morgan Stanley Smith Barney understands the importance of shaping relationships that reflect client needs, preferences and aspirations. Our firm and Financial Advisors have an in-depth understanding of virtually all the challenges, goals, preferences, styles and strategies that distinguish wealthy investors. Additionally, as a truly global financial institution, we have an equally acute knowledge of financial opportunities and the potential risks. This combination positions us to develop, structure and execute solutions for your most important financial needs, from accumulating wealth to investing for income, from solidifying retirement security to devising a distribution approach that meets your lifestyle and legacy goals. investment insight without limits. As a client, you have access to the strategic and tactical views of some of the world s most seasoned and respected investment professionals. The members of our Global Investment Committee develop strategies that guide the management of advisory accounts and help to inform the decisions of clients across Morgan Stanley Smith Barney. The team is currently supported by the work of 350 analysts at two of the world s largest investment banks, Morgan Stanley and Citi, who cover key geographic and economic sectors, as well as 3,000 individual equity securities. You also benefit from a premier trading and execution platform. Think of our 225 capital markets professionals as experienced, highly responsive and knowledgeable partners. performance that meets your measure. Among the most important skills of our Financial Advisors is the ability to listen: to thoroughly understand your financial needs and then align the resources to meet them. Your Financial Advisor can help you evaluate immediate concerns and plan for long-term goals, be a sounding board for your investment ideas, assist you in developing and executing a strategy that is precisely your own and help deliver performance results that meet your needs. Your Financial Advisor is your advocate within our firm, an intelligent editor who selects and aligns the many capabilities of Morgan Stanley Smith Barney for you, delivering the right resources to you in the way that is most appropriate for how you invest and what you want to achieve. one of the world s strongest investment organizations stands Behind your financial advisor Financial Advisors have access to top-flight research from both Morgan Stanley and Citi. Combined, they analyze and track the progress of more than 3,000 companies all over the world. Please read important disclosures on the back cover of this brochure Morgan Stanley SMith Barney 13

Recognition John Jackson has received the following awards: Rockport Fulton Chamber of Commerce Citizen of the Year, Rockport Rotary Club Volunteer of the Year, The Education Foundation s Lifetime Achievement Award, Javelina Alumni Association s Distinguished Alumnus (Texas A&M University-Kingsville), Collegiate Academic All-American (football), South Texas Council Boy Scouts of America-Fundraising Hall of Fame 2010 Inaugural Member, Eagle Scout and Silver Beaver Award in Scouting. In 2009, Texas Monthly named John Jackson to the FIVE STAR Best In Client Satisfaction Wealth Manager. * Community Involvement and Support The Rockport Group s community involvement and support is extensive, including: Aransas County Historical Society Boy Scouts of America (South Texas Council) Corpus Christi Symphony Orchestra Humane Society of Aransas County Rockport Center for the Arts Rockport Fulton Chamber of Commerce Rockport Rotary Club The Education Foundation The Margaret Sue Rust Foundation Texas A&M University Kingsville Texas Maritime Museum Young Life of Rockport Odyssey After School Enrichment Program Aquarium at Rockport Harbor The Fulton Mansion Del Mar College 14 Morgan Stanley Smith Barney

Morgan Stanley Smith Barney strives to offer clients the finest in financial thinking, products and execution to help them meet their individual needs and achieve their personal financial goals. When we work together, you ll benefit from personalized advice, objective guidance and dedication to your success as an investor. With access to Morgan Stanley Smith Barney s renowned global resources and investment opportunities, we can help you develop and maintain an optimal investment strategy. Our wealth management strategy will address key areas of your financial life beyond traditional investments and may incorporate diverse recommendations for building and protecting your wealth.

Morgan Stanley Smith Barney offers a wide array of brokerage and advisory services to its clients, each of which may create a different type of relationship with different obligations to you. Please contact us to understand these differences. Asset allocation and diversification do not guarantee a profit or protect against loss. Morgan Stanley Smith Barney LLC ( Morgan Stanley Smith Barney ) is a registered broker-dealer, not a bank. Where appropriate, Morgan Stanley Smith Barney has entered into arrangements with banks and other third parties to assist in offering certain banking-related products and services. Unless otherwise specifically disclosed to you in writing, investments and services offered through Morgan Stanley Smith Barney, member SIPC, are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by, banks and involve investment risks, including possible loss of principal amount invested. Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Smith Barney Financial Advisors do not provide tax or legal advice. This material was not intended or written to be used for the purpose of avoiding tax penalties that may be imposed on the taxpayer. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters. *Source: Crescendo Business Services FIVE STAR: Best in Client Satisfaction Wealth Managers, September, 2009, 30,000 to 80,000 consumers most likely to use the services of a financial services representative (identified by Crescendo) and 4,000 to 8,000 financial service professionals (identified by Crescendo) are asked to name and evaluate up to three financial advisors. The number of individuals in the sample varies based on the size of the local market. In addition to the survey results, other evaluation criteria, such as a minimum of five years financial services experience, acceptable compliance records, and evaluation results by a panel of local industry experts are incorporated into the overall evaluation process. The final list identifies the wealth managers, of those evaluated, in the local market that score highest in client satisfaction. For more information on the rating methodology, go to http://www.fivestarprofessional.com. The FIVE STAR Wealth Managers do not pay a fee to be included in the research or the final list of FIVE STAR Best in Client Satisfaction Wealth Managers. The overall evaluation score of a wealth manager reflects an average of all respondents and may not be representative of any one client s evaluation. The inclusion of a wealth manager on the list should not be construed as an endorsement of the wealth manager by Crescendo or Texas Monthly. The rating is not indicative of the Financial Advisor s future performance 2011 Morgan Stanley Smith Barney LLC. Member SIPC. 6652729 03/11