There are many ways to put your money to work for you, and one way to leverage the value of your portfolio is with a securities-based loan. In this issue of MOR Investing, learn how a securities-based loan can help you finance your next business venture or luxury purchase. Also, see how Morgan Keegan’s Focus List of recommended stocks retained its top ranking in the bi-annual Zacks survey for the fifth consecutive time. All this and more is in this issue of MOR Investing. Thank you for choosing Morgan Keegan.
Access the Value of Your Portfolio with a Securities-Based Loan
For many investors, the market volatility we experienced over the last several years impressed the importance of properly managing all aspects of wealth management. Whether your focus is on wealth accumulation, preservation, cash management, wealth transfer or any other strategy, the ability to move quickly when a liquidity need arises has become of paramount importance. If you find yourself with a sudden unexpected need or simply want to add another feature to your financial plan, a Regions Securities-Based Loan available through your Morgan Keegan financial advisor may be right for you. 
A securities-based loan uses your eligible investment portfolio as collateral, allowing you to access funds without immediately liquidating your holdings. This gives you, the investor and borrower, the ability to access liquidity while maintaining your portfolio’s current exposure to the market. You will continue to receive the benefit of any dividends, interest or capital appreciation that may accrue in the account. However, if you have an outstanding loan balance and the portfolio used to secure that loan declines in value, the lending institution may require you to post additional collateral or repay part or all of the loan. The lending institution may also liquidate all or part of the portfolio, which may interrupt your long-term investment strategy and could result in adverse tax consequences.
A securities-based loan through Regions Bank is an uncommitted, demand line-of-credit secured by marketable securities in your Morgan Keegan account. It is a “non-purpose” loan and may be used for any purpose except to purchase or carry securities, and no lien is placed upon any asset such as real estate or personal property. The Regions securities-based line of credit is tied to the 30-day London Interbank Offered Rate, or LIBOR, and allows you to enjoy advantages over many equity-based credit lines, including waiver of assessed bank fees, faster turnaround on approvals and no annual reviews or renewals.
Ready Access to Cash to Capture a Potential Investment Opportunity or Financing to Start/Grow a Business
Using the Regions Bank securities-based lending option can give small business owners the ability to expand their practice, provide a means to negotiate a better price on the purchase of a building, or gain access to the working capital needed to grow their franchise or even start a new company. It can also be used to take advantage of an opportunity for a new venture or other investment opportunities by tapping into the value of their portfolio. By taking out a securities-based loan, business owners do not have to liquidate their Morgan Keegan investments. In fact, they can keep their current investment strategy intact, while gaining the flexibility of cash for their investment opportunity need.
Managing Tax Exposure
Whether your goal is wealth accumulation, preservation, cash management, or wealth transfer, you want to closely manage your tax exposure to avoid adverse consequences for your specific strategies. Some investors are finding financing solutions for their estate plan strategy, for instance, through a securities-based loan. In addition to the simple application process and quick access to cash, access bank fees are waived and you can make interest-only payments*. Of course, tax consequences are a critical consideration in all aspects of investing, and you should always include the advice of your tax advisor before making any decisions.
For an Important Luxury Purchase
When contemplating an important luxury purchase, there is much more to consider than just the impressive price tag. In addition to the initial purchase cost needed and the potential for more high interest debt, large purchases can have a significant effect on your overall investment strategy, in both the short and long term. They can also have tax implications.
If you are in the market for a yacht, artwork, jewelry or aircraft, a securities-based loan can give you the means to make that luxury purchase in some circumstances, and still keep your investment strategy intact. Talking with your Morgan Keegan financial advisor and your tax advisor before splurging can help you determine if a securities-based loan is a good option for you.
Aligning your need for a loan with your established financial plan is just a part of the comprehensive wealth management service you have come to expect from Morgan Keegan. Your Morgan Keegan financial advisor, along with a Regions Private Banker, can answer your questions about the Regions Securities-Based Loan. Call today!
*Principal is due upon demand.
The securities-based line of credit is an extension of credit by Regions Bank and is subject to credit approval. Terms of program subject to change. Any interest or other finance charges payable to Regions under the line of credit are in addition to any fees payable to Morgan Keegan & Company, Inc. in connection with the securities account. Amounts owed on the line of credit may exceed investment returns on the securities account. Neither Morgan Keegan nor Regions Bank provides legal or tax advice. Consult your legal and tax advisors regarding the legal and tax implications of borrowing using securities as collateral for a loan. Borrowing using securities as collateral entails risk and may not be appropriate for your needs. For discussion of the risks associated with borrowing using securities as collateral, please review the Loan Disclosure Statement that will be included in your application package. Should the value of securities pledged as collateral decrease below a certain level (as specified within the loan document), the pledge of additional eligible assets and/or liquidation of assets may be required. Securities-based loans cannot be used for investment purposes. A complete description of the loan terms can be found in the credit agreement.
Investment services are provided through Morgan Keegan & Company, Inc., a subsidiary of Regions Financial Corporation and a member FINRA and SIPC. Securities and insurance products sold through Morgan Keegan are not FDIC insured, not a deposit, not an obligation of or guaranteed by Regions Bank, its affiliates, or any government agency, and may lose value.
Earn and Protect with CDs
For investors looking to earn income while protecting their principle, brokered Certificates of Deposit (CDs) can play an important role in a balanced portfolio. Offered in $1,000 denominations, brokered CDs generally pay interest periodically (for example, every six months) with the principal being returned to you at final maturity. While interest income from CDs is generally subject to income tax, CDs offer a higher rate of interest than savings or money market deposit accounts, and are widely considered to be relatively low-risk investments because of the availability of deposit insurance by the FDIC.
Typically, there are two basic types of CDs: those traditionally offered at the local bank and brokered CDs available through a brokerage firm such as Morgan Keegan. Morgan Keegan offers a broad selection of brokered CDs of various maturities and coupon frequencies to help you find those CDs best-suited to your particular requirements. All CDs offered by Morgan Keegan benefit from the same FDIC coverage as bank CDs. It is important, however, to understand that not all CDs have FDIC insurance.
Investors should carefully consider the risks and benefits of both bank and brokered CDs in order to determine the most appropriate selection for their individual circumstances. For more information on the features and risks of CDs, go here, or talk to your Morgan Keegan financial advisor.
Morgan Keegan Focus List Maintains Dominant Performance
For the fifth consecutive time, Morgan Keegan’s Focus List of recommended stocks has dominated the competition. According to the leading independent research firm of Zacks Investment Research, Morgan Keegan’s Focus List of recommended stocks outperformed the recommended stock lists of 
national and regional firm with a dominating 33.45% return for the five-year period ended December 31, 2010. Zacks ranks the recommended stock lists of the nation’s leading brokerages every six months*, and Morgan Keegan’s Focus List of recommended stocks has been ranked #1 in the five-year category since late 2008—that’s five consecutive rankings periods!
Morgan Keegan Focus List is created by the Focus Group, an investment brain trust consisting of representatives from Morgan Keegan’s Equity Research department, Equity Strategy Group, Equity Institutional Sales and Private Client Group, using the same Morgan Keegan equity research available to you as a client.
Focus List is offered by Morgan Keegan as a registered broker-dealer and is not offered as an investment advisory product. A detailed report on the specific performance of each Morgan Keegan Focus List selection is available upon request.
Talk to your Morgan Keegan financial advisor to learn more about our Focus List and how you can benefit from all the resources of our Equity Research department.
*In addition, Morgan Keegan ranked second in the three-year category with a 12.77% return. The firm’s 19.95% gain in the one-year category ranked fifth among the brokerages surveyed and its 24.72% for the second half of 2010 ranked seventh. According to Zacks Investment Research, Morgan Keegan’s Focus List posted a 97.01% return since Zacks began tracking Morgan Keegan’s Focus List performance at the beginning of 2004.
Zacks Investment Research, Inc., an independent research source for Barron's, tracks the stock recommendations of 12 major brokerage firms. The Zacks survey is intended to give investors an indication of how their portfolio would perform if investment professionals selected their stocks. Calculations for the survey take into account gains or losses, dividends and theoretical commissions of 1% on each trade. If a Barron’s survey participant informs Zacks of a change to the focus list before 12:00 noon CT, the change is effective on the same day, otherwise it is accounted for on the next day. The prices used are the official exchange closing prices. Monthly returns are then linked geometrically to produce quarterly and annual total return performance figures. Zacks calculates the time-weighted monthly performance of focus lists on an equal-weighted basis.
Past performance is not indicative of future results.
File your paperwork down with eNotification
Discover the ease and convenience of eNotification, Morgan Keegan’s electronic statement delivery system. To receive your monthly statement online, contact your Morgan Keegan financial advisor and sign up for eNotification today!
FINRA-Protecting You
Morgan Keegan & Company, Inc. is a member of the Financial Industry Regulatory Authority (FINRA). As such, we are required to disclose the availability of BrokerCheck. BrokerCheck is a free online tool to help investors research the professional backgrounds of current and former FINRA-registered brokerage firms and brokers. To access BrokerCheck or download a brochure, go to www.finra.org. For questions regarding BrokerCheck, FINRA provides a toll-free hotline, 800.289.9999, available Monday through Friday from 8 a.m. until 8 p.m., Eastern Time.
Learn More About SIPC
Morgan Keegan & Company, Inc. is a member of the Securities Investor Protection Corporation (SIPC). You may obtain information about SIPC, including a SIPC brochure, by visiting www.sipc.org or calling 202.371.8300.
News for CMO Investors
An informational brochure on CMOs and other mortgage-related securities is available from your Morgan Keegan financial advisor. Call your advisor for a complimentary copy.
An Important Message for Margin Account Holders
Customers with margin accounts that have a debit balance may lose the right to vote some or all of the securities. Securities that are pledged as collateral for a margin loan may then be lent by the Firm carrying the debt (Morgan Keegan) to itself or to others. The authorization for this lending of securities is set forth in the Morgan Keegan New Account Client Agreement and Disclosure Statement. If those shares are loaned, the right to vote the shares goes with the shares. Therefore, if you carry a margin debit balance you may not be able to vote all of those shares. Further, you may receive proxy materials that reflect a right to vote a different, smaller number of shares than you may own in your margin account.
If you have any questions on these matters, please contact your Morgan Keegan financial advisor.
