1. Advisors Discuss Where Alternatives Fit In Client Portfolios
Joseph Childrey
Probabilities Fund Management, LLC
Bill
Carter
Carter Financial Management
Jeanie Wyatt
South Texas Money Management, LTD

2. BILL E. CARTER, CFP®, CLU®, ChFC® President and Founder
12222 Merit Drive, Suite 1800
Dallas, TX
Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. and Carter Advisory Services, Inc. Carter Financial Management and Carter Advisory Services, Inc. are not registered broker/dealers and are independent of Raymond James Financial Services.

3. FA 8th Annual Inside Alternatives
Sheraton Denver Downtown October 23-24, 2017

4. Alternative Investments
What interested me in Alternative Investments?
Stock Market Dow %
Stock Market Dow %

5. CONSIDERATIONS
Alternative investments involve substantial risks that may be greater than those associated with traditional investments and are not suitable for all investors. They may be offered only to clients who meet specific suitability requirements, including minimum-net-worth tests. These risks include, but are not limited to, limited liquidity, tax considerations, incentive fee structures, potentially speculative investment strategies, and different regulatory and reporting requirements. Investors should only invest in hedge funds, managed futures, structured products, commodities, real estate or other similar strategies if they do not require a liquid investment and can bear the risk of substantial losses. There is no assurance that any investment will meet its investment objectives or that substantial losses will be avoided. Investors should carefully review any offering materials or prospectuses prior to investing. This presentation is not intended as an offer to sell, or the solicitation of an offer to purchase, any security. The information set forth in this presentation is provided for informational and discussion purposes only. Any offering will be made only by means of a confidential private placement memorandum or prospectus. Diversification does not guarantee profits or protection against losses. Alternative Investments involve substantial risks and are not suitable for all investors. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.

6. ALTERNATIVE INVESTMENTS
While there is no concrete definition for what constitutes an alternative investment, there are some attributes:
The use of less mainstream investment strategies, resulting in returns that could potentially vary from those available in traditional investments.
The markets/instruments traded may be less common and may offer a different risk/reward proposition.
Fund structures can vary, often being in an unregistered form (such as limited partnerships or LLCs).
Alternative investments may differ from traditional investments in regards to fees, liquidity, tax reporting, etc.

7. ALTERNATIVE INVESTMENTS
Structures & Strategies
Hedge Funds
Long/Short Equity
Event Driven
Credit
Fund of Funds
Private Equity
Buyout
Venture
Other
Real Estate
Non-traded REITs
Opportunistic Real Estate
Mutual Funds
Long/Short Equity
Event Driven
Credit
Managed Futures/Global Macro
Multi-Manager

8. ALTERNATIVE INVESTMENTS
The increased use of alternative investments by sophisticated investors is predicated on the three cornerstones of asset allocation decisions:
Risk
Return
Correlation

9. ALTERNATIVE INVESTMENTS
Risk: Effect of Large Losses
This chart is for illustrative purposes only and does not reflect an actual investment.

10. ALTERNATIVE INVESTMENTS
Correlation

11. ALTERNATIVE INVESTMENTS
Event Driven

12. ALTERNATIVE INVESTMENTS
Managed Futures FX
COMMODITIES
Australian Dollar
Japanese Yen
British Pound
Russian Ruble
Canadian Dollar
Swiss Franc
Corn
Rubber
Cotton
Soybeans
Lean Hogs
Wheat
METALS
INTEREST RATES
Copper
Steel
Gold
Zinc
Silver
2yr Treasury Note
30yr Treasury Bond
5yr Treasury Note
Euribor
10yr Treasury Note
ENERGY
EQUITY
Brent Crude Oil
Natural Gas
Heating Oil
Light Sweet Crude
Nasdaq 100
Nikkei 225
S&P 500
RTS Index
Eurostoxx 50
Individual Equities
Source: FIA 2012
This list does not represent a comprehensive list of futures contracts. It is only a partial list of available contracts. 11

13. ALTERNATIVE INVESTMENTS
Private Equity
Angel Investors
Venture Capital
Growth Equity
Leverage Buyouts
Public Markets

14. ALTERNATIVE INVESTMENTS
Real Estate

15. ALTERNATIVE INVESTMENTS
Due Diligence

16. ALTERNATIVE INVESTMENTS
Considerations
Liquidity
Fees
Transparency
Leverage
Regulation
Taxes
Speculative Trading Strategies
Specific Investments may have other significant considerations. It is important to study the offering documents of any investment being considered in order to weigh such considerations carefully.

17. ALTERNATIVE INVESTMENTS
Eligibility, Suitability, & Positioning
Qualified Purchaser*:
$5 mm of investable assets for individuals, $25mm for entities
General Guidelines
5% of investable assets per product
20-30% of investable assets overall
Outside illiquid exposure capped at 50%
IRA or other retirement account exposure capped at 50%
70+ year old clients have stricter guidelines
Qualified Client*:
$2.1 million total net worth, excluding home
Accredited Investor*:
$1 mm investable net worth for individuals, $5mm for entities
Less than $1 million of investable assets
* Requirements are summarized and not intended to be full definitions. Please see the product offering literature for more complete information on requirements for any particular investment. Additional guidelines may apply.

18. Special Thanks to
Raymond James Alternative Investments Group for their assistance with this presentation

19. QUESTIONS? Bill E. Carter, CFP®, CLU®, ChFC® President
Carter Financial Management
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