Calm is my usual pace, but I must admit my excitement to share our progress over the past year. At Arlington, we often say that we invest for decades, plan for centuries, and serve for generations. These are not merely aspirations; they are the metrics by which we measure every decision we make. In this spirit, over the past year our ideas, our vision, and our dedication to grow alongside the families we serve have all broadened.
Make no mistake: we are not writing a different book; we are reading our mission with wiser eyes and renewed purpose. A deeper truth has emerged from this perspective: Flourishing is not a static state—it is a practice. The families who flourish across generations are not those who avoid problems, but those who possess the framework to solve them.
This annual report focuses on the Arlington Way. We are pulling back the curtain on how we approach problem solving at Arlington. In doing so, and after thousands of hours invested by our multi-disciplinary team, we share several exciting advancements designed to transform obstacles into institutional strength:
• The Build a Better Family Path: Created in 2025, this process brings greater clarity and sustainable purpose to your life and the lives of your children. By applying a curiosity-driven mindset that combines the logic of systems thinking with the warm intuition of the human touch, we help families uncover the shared values that anchor generations.
• The Arlington ETF: We recently launched our first exchange-traded fund to transform our long-term, high-
quality separate account stock strategy into a modern pooled investment vehicle, benefiting our clients by lowering costs and enhancing operations.
• The New Arlington Client Portal: This “unified wealth center” marks a leap forward in how we deliver clarity, reflecting the holistic nature of your family’s human and financial capital.
• Strategic Expansion: With current offices in Birmingham and Nashville, we developed plans to open a new location in Dallas, Texas, in 2026. Our objective is to create an opportunity for growth and improvement without losing the intimacy you expect.
As we adopt these advancements, above all else we will maintain a human touch. Technology and AI are tools, not substitutes; we let machines handle the calculations so we can focus on connecting. AI can compute in milliseconds, but it cannot hold a client’s story in its heart.
Our organization is founded on purpose. In line with this, 2026 will mark the release of our new book, Built on Purpose, which explores applying the 3 Laws of Purpose to Business, Living, and Giving. By fostering a culture of radical accountability, we ensure that the advisors sitting across from your grandchildren will possess the same steady hand and multidisciplinary perspective you rely on today.
We anticipate that 2026 will be our best year yet. Here’s to a better family.
With gratitude and purpose,
Kenneth H. Polk Founder and CEO
THE NUMBERS
Our team of specialists supports a select community of families with best-in-class investment, trust, philanthropy, tax, and human capital services, all to guide them on their journey to Build a Better Family. ARLINGTON BY
Created to foster enduring legacies across generations, Arlington is a purposedriven and values-led f irm that acts with centuries in mind, and serves with families at heart.
OUR THREE GUIDING PRINCIPLES
Assets Under Stewardship
Families Served
Entrepreneurialism
Innovation and creativity foster enduring organizations (and families). Many businesses lose adaptability and originality as they grow. They become bureaucracies. We are determined to stay true to our entrepreneurial origins.
Independence
Our independence is protected by the absence of external shareholders. Strategy, operational decisions, and culture should be formed by active owners and those closest to the families we serve.
Long-Term Thinking
We think beyond the short-term and focus on decisions that are seven-generation principled. This allows the organization to be purpose-driven and values-led. And, it underpins the thinking that lies at the heart of successful investment performance.
TOOLS & TACTICS
BUILDING A LASTING LEGACY
PRACTICAL PROTOCOLS FOR FAMILY FLOURISHING
By Elliot Robbins, Chief Fiduciary Officer
Family legacy, unlike a family home or financial capital, is not just inherited—it must be actively built, constantly nurtured, and thoughtfully transferred. Our new Build a Better Family process, outlined below, creates a framework for this essential work.
For years, we have been frustrated by the industry tools for family legacy work which often seem designed to impress with their opaqueness and complexity.
Starting with the Foundation
In 2025, we endeavored to build a tool designed by our Arlington family for your Arlington family. The result is the Build a Better Family (BABF) process—a family legacy path that removes the mystery from “family legacy work,” makes the process approachable, and allows families to see through to their most important elements. This involves answering three foundational, yet profound, questions: Who are you? Who is your family? and What are you trying to accomplish?
While these questions may initially seem basic, in reality, many families investigate their answers without the clarity of a defined process
for doing so. Yet, the answers, once established, become the family’s anchors and guardrails. They provide a fixed point to return to when life gets busy or stormy and generate caution flags when something enters the family that conflicts with its established identity and longterm objective.
Addressing Generational Divides
As the process continues, two related objectives inevitably arise: Older generations want to know how to pass on their values , and rising generations want to know ways to fi nd their purpose.
The generation that creates wealth often finds their purpose in providing a better life and ensuring their children will not face economic pressure. However, the receivers of wealth inherit a new challenge: determining what to do with their lives when they aren’t required to
spend it on labor and toil for basic needs.
Finding purpose becomes critical for a thriving existence. To address both, BABF works within the three laws of preservation by conducting three key activities: first, a Character Traits Assessment, then a Values Workshop, and, finally, a Gifts Assessment.
This work culminates in the reveal of a core framework in BABF—the generational equipping model. This supporting framework creates a blueprint for each generation with built-in flexibility that encourages natural evolution as the family grows and new family leaders (and new households) emerge.
From Observers to Participants
To succeed over time and through adversity, families must recognize that individual decisions have collective consequences and balance the tension between individual goals and the collective family future. During our work, we help families begin with the end in mind and paint a vision for what they want their family to become.
Ultimately, every family desires the same thing: for their family to thrive and their children to be well-adjusted, purposeful, and happy.
The goal is to help each individual to understand what the family collectively wishes to become, balancing that with honoring who they are individually. The most effective method is transforming family members from observers of a story to participants in it.
THE CHARACTER TRAITS ASSESSMENT invites each person to identify the traits by which they wish to be remembered. The objective is to create an aspirational view that allows a person to then live it backward.
THE VALUES WORKSHOP allows families to explore, articulate, and declare the “big rocks” that anchor their family. Through this powerful exercise, we find that both parents and their children are often surprised by the strength of their alignment and the effectiveness of their shared learning.
Every member must have a clear understanding of how their gifts and talents allow the family to flourish. This creates a sense of ownership in each person, fostering a capacity to thrive without losing sight of individual passions and purpose.
Moments of Transcendent Clarity
As we walk the BABF path with clients, families experience profound breakthroughs that occur during the three cornerstone experiences we facilitate.
THE GIFTS ASSESSMENT asks participants to consider their natural abilities and those of the people closest to them. It creates the unique opportunity for those closest to us to share where we possess natural gifts. This simple shift allows individuals to see themselves through someone else’s eyes. The impact is often a deeply moving and vulnerable experience and can profoundly strengthen family relationships.
A Guaranteed Return on Investment
We are convinced of the power of the BABF process. Simply put, combining a clear intention and a modest investment of time, any family who walks through the BABF journey once will emerge with a clear vision and cohesive plan to build a better family that is approachable and understandable for each family member. They will discover and honor the gifts of each individual and the values of the collective family and create a foundation for better relationships, better understanding, and better decision making.
A family that embraces BABF by revisiting its learning as they evolve will compound these results across households and through generations. Why not start the journey today? •
CAREFUL ADDI I ION
This year we added a number of talented new team members who are already proving indispensable to our multi-faceted work with families.
Connor Lowery, CFP®, CPA
Family Wealth Advisor
Connor Lowery has always thrived at helping people make thoughtful decisions.
That skill made working with Arlington a perfect fit. “My personal purpose is to lead others from vision to clarity and wisdom,” he says. As a Family Wealth Advisor, Connor serves as a personal CFO and quarterback for the families he advises. His work helps them align their wealth, purpose, and philanthropic vision across generations. With more than a decade of experience in public accounting, private wealth management, and family office leadership, he brings both technical expertise and a deep relational approach to his role. Connor was drawn to Arlington’s commitment to independence and conviction that true success means building better families, not just portfolios. Outside of work, Connor prioritizes time with his wife and children, coaching his kids’ sports teams, serving in his church, and finding adventure—whether on the golf course or hiking a 14er with friends.
Kathleen Robinson Human Resources Manager
People have always been at the heart of Arlington’s work. As the company’s first Human Resources Manager, Kathleen Robinson is already creating more structure and support for our most valuable resource: our team.
Guided by her philosophy of C.A.R.E.— offering Counsel, being an Advocate, providing Resources, and elevating the employee Experience—Kathleen oversees the full team member lifecycle, from recruiting and onboarding to culture and retention.
“It’s surreal to join a company I’ve admired for years,” she says. “I’m honored to play a part in strengthening the overall employee experience.” Before Arlington, Kathleen built HR departments from the ground up in the tech industry, experience that prepared her to build on Arlington’s strong legacy of purpose-driven culture. Outside of work, Kathleen and her husband, Daniel, just welcomed their first child, daughter Emogene. She also enjoys hosting family and friends, walking her neighborhood, and serving on her church’s worship team.
Josh Hodges, CFA
Family Wealth Advisor
For Josh Hodges, joining Arlington was more than a typical career move. It was the culmination of a calling. After more than a decade advising families at firms in Chicago and Dallas, Josh read The Spirit of Wealth Preservation and felt compelled to be part of Arlington and the mission behind the book. As a Family Wealth Advisor, he helps families make thoughtful decisions about their wealth that align with their generational values and vision. “Arlington’s stewardship model and commitment to never being sold is one of the clearest demonstrations of purpose I’ve ever seen,” Josh says. “It ensures the firm’s mission will always remain aligned with the families we serve.” Outside of work, Josh enjoys an active life with his wife and two young sons—spending time outdoors, staying fit, reading, and interacting with their church community.
Hunter Jordan Senior Analyst, Direct Investments
“I’m a business nerd at heart,” our new Senior Analyst, Hunter Jordan, says of his position focusing on our Direct Investments. “I love thinking about what makes a company truly great—not just financially strong, but built around human experiences that foster connection, gratitude, and stewardship.” In this role, Hunter supports operations, strategy, and due diligence for Arlington’s portfolio companies. His background spans corporate operations and management consulting, where he developed a deep appreciation for purpose-driven organizations and solving complex challenges with long-term vision. Hunter was drawn to Arlington’s culture of integrity and its unique commitment to permanence. Outside of work, he enjoys time with his wife and their two young sons, being outdoors, traveling, and training for his next half marathon.
A MESSAGE FROM OUR COO
The Alchemy of Solutions
BUILDING RESILIENCE THROUGH RADICAL PROBLEM-SOLVING
By Emily Vanlandingham, Chief Operating Officer
In the world of family offices, “holistic” is a word often used but rarely defined. For our firm, it isn’t just a service menu; it is a mental architecture. As we look back on a year of significant evolution—and look forward to new milestones in 2026—we want to pull back the curtain on the engine that drives our progress: our unique problem-solving framework.
Whether we are designing a new digital interface, expanding our physical footprint, or navigating a family’s complex succession plan, we apply a consistent discipline that turns friction into momentum.
The Framework: Where Systems Thinking Meets the Human Touch
Complex problems are rarely solved by looking at a single data point. They require a multidisciplinary lens—a way of seeing how a move in one area affects the entire ecosystem. Our approach is built on four distinct pillars:
1. A Curiosity Mindset: Before we prescribe, we investigate. We ask “Why?” until we reach the root cause, ensuring we aren't just polishing the surface of a deeper issue.
2. Systems Thinking: We view every challenge as part of a larger web. When we improve our internal efficiency, it isn’t just about saving time; it’s about freeing up your Arlington team to provide deeper emotional bandwidth to your family.
3. Radical Accountability: A solution without an owner is just an idea. We build clear structures of responsibility into every project, ensuring that “done” actually means “resolved.”
4. The Human Touch: Logic alone doesn’t sustain a legacy. We filter every technical solution through the lens of empathy, ensuring that technology serves the person, not the other way around.
“Complexity is not the enemy; a lack of framework is. True flourishing happens when curiosity meets a system.”
Case Study in Progress: Our 2026 Dallas Expansion
Our upcoming launch in Dallas is a prime example of this framework in action. Opening a new office is not a real estate play or a quest to gather assets; it’s a problem-solving exercise in maintaining culture across miles to best serve our families where they live.
By applying rigorous systems thinking and deep human understanding, we ensure that a client in Texas receives the exact same high-touch experience as a client in our founding office, backed by unified technology and process. We aren’t just adding a location; we are expanding our human network.
This expansion has moved from vision to reality as we finalize a lease for a bespoke physical space—a location intentionally designed to foster the same high-touch collaboration our families expect. More importantly, we are actively cultivating a network of local Dallas talent who share our ‘systems thinking’ DNA. By hand-selecting individuals who value empathy as much as expertise, we are ensuring that our Texas home is built on a foundation of both architectural precision and deep relational trust.
Innovation
with
Intent:
Our New Client Portal
Technology is often a source of frustration for families—it can be clunky, impersonal, and rigid. When we set out to build our new client portal, we didn’t start with code; we started with
relational design and human touch. We asked: How can technology reduce the ‘cognitive load’ on a family?
The result is a platform that prioritizes clarity over complexity. It is an efficiency tool designed to give you back your most precious asset: time.
YOUR WEALTH, UNIFIED
New Arlington Client Portal to roll out to all Arlington families in 2026
In one of the largest innovation projects we have undertaken to date, our internal technology development team has invested thousands of hours in reimagining and redeveloping the Arlington Client Portal for each of our client families.
In the coming weeks, you will receive information about how to access your family’s holistic, unified wealth center.
This represents our commitment to using technology to enhance, rather than replace, the personal relationships that define our firm.
This year, we are rolling out a platform designed to act as your family’s unified wealth center. Consistent with our holistic model, the new portal allows you to see how every piece of your strategic plan works together.
Key Features Include:
• Comprehensive Family Information: View details on family members, entities, trusts, estates, and the Arlington team who serves you.
• Dynamic Reporting: Review progress against specific benchmarks and longterm legacy goals.
• Portfolio Monitoring: A consolidated snapshot of all positions, performance, liquidity, and tax positions.
• Legacy Planning: Real-time updates to your WealthBook and access to the Build a Better Family Path.
• Secure Document Vaulting: An encrypted repository for sensitive legal, tax, and family documents.
• Lifetime Learning: A curated library of articles, books, and podcasts focused on flourishing families.
Generational Sustainability: Teaching the “How”
Perhaps the most vital application of our framework is in our commitment to the next generation of Arlington leaders. We recognize that for a family to flourish for centuries, the rising generation must be more than just inheritors—they must be expert navigators. The same is true for Arlington.
We are actively teaching our firm’s emerging leaders, and the children of the families we serve, how to think this way. By passing down
this problem-solving DNA, we ensure that: conflicts become opportunities for better communication, market volatility becomes a prompt for disciplined re-evaluation, and complexity becomes a catalyst for innovation.
Building Better Families
All families have problems to solve. Wealth doesn’t eliminate challenges; it often magnifies them. However, when we apply a framework of curiosity, accountability, and systems thinking to family dynamics, the result is generational flourishing.
“The greatest asset a family can possess is not their capital, but the shared capacity to turn any problem into a collective solution.”
As we move into 2026, we remain dedicated to this unique craft. We aren’t just managing assets; we are building the frameworks that allow families to stay connected, resilient, and prepared for whatever the future holds. •
READ, SAID & HEARD
BOUND TO INSPIRE
Our firm, s focus on learning means books and podcasts are a constant topic in our Birmingham and Nashville offices. Our team loves sharing what we,re reading and listening to with each other as well as with the families we interact with daily. We hope you enjoy this year, s picks as much as we have.
The Art of Thinking Clearly
By Rolf Dobelli
RECOMMENDED BY
Brooke Bruner Head of Client Accounting Services
Why do smart people make irrational decisions? That’s the key question Dobelli answers in a series of bite-sized chapters. Each studies the cognitive biases that trip us up daily—from sunk costs to confirmation bias—followed by practical strategies for thinking better and living wiser.
The Four Agreements
By Don Miguel Ruiz
RECOMMENDED BY
Ken Polk Founder & CEO
Ancient wisdom meets modern self-help in this academic but approachable guide. Ruiz’s seemingly simple principles—be impeccable with your word, don’t take things personally, don’t make assumptions, and always do your best—offer a clear path to new levels of personal freedom and joy.
The Business Breakdowns Podcast with Matt Reustle & Zack Fuss
—
RECOMMENDED BY
Hunter Jordan Senior Analyst, Direct Investments
This podcast gives listeners a behind-thecurtain look at top businesses. Hosted by seasoned investors, each episode is a blueprint for understanding what makes leading companies tick—from business model to financials to competitors.
Unreasonable Hospitality: The Remarkable Power of Giving People More Than They Expect
By Will Guidara
RECOMMENDED BY
Stephen Rowe President & General Counsel
What happens when a world-class restaurant creates memories instead of just meals? The answer to that question is at the heart of Guidara's book about his time running the Michelinstarred and globally celebrated Eleven Madison Park in New York. Guidara shares how radical generosity and bespoke, personalized experiences can transform any business into a hospitality powerhouse.
Tribe: On Homecoming and Belonging
By Sebastian Junger
RECOMMENDED BY
Chelsea Peck
Securities Operations Manager
In this careful exploration of combat veterans, disaster survivors, and tribal societies, awardwinning adventure writer Sebastian Junger contemplates the deep human need for belonging and purpose. Arguing that adversity often brings out our best selves, this engrossing read offers a powerful meditation on connection in a fragmented world.
Undaunted Courage
By Stephen E. Ambrose
RECOMMENDED BY
Justin Cureton Senior Manager of Tax Services
Historical without ever being dry, this page-turning account of Lewis and Clark’s legendary expedition, chronicles one of the greatest adventure stories of all time. Ambrose’s vivid storytelling sheds light on these famous explorers and how their daring adventures shaped America’s frontier.
Borrowed from Your Grandchildren: The Evolution of 100-Year Family Enterprises
By Dennis T. Jaffe
RECOMMENDED BY
Josh Hodges Family Wealth Advisor
Dennis Jaffe attempts to answer a question we often ask—how families preserve wealth and values across generations—with a global study of 100-year family enterprises from 20 different countries. His thoughtful research maps the governance, adaptability, and shared purpose that define generationally vital families. With its rare insights and stories, Jaffe’s book provides wisdom for anyone guiding a family legacy in a rapidly changing world.
All the Presidents’ Money
By Megan Gorman
RECOMMENDED BY
Chad Brand Family Investment Advisor
From Jefferson’s debts to Hoover’s wealth, Gorman’s fascinating financial biography reveals how America’s historic leaders managed their money. With sharp analysis and lively storytelling, the book depicts how our presidents’ financial lives were shaped by grit, risk, and opportunities—both seized and missed.
The Next Conversation: Argue Less, Talk More
By Jefferson Fisher
RECOMMENDED BY
Hannah Basik Director of Trust Operations
Fisher offers a three-part framework for communication—control, confidence, and connection—laying out practical tools for navigating conversations that lead to powerful results no matter the audience. Whether with family or clients, this book helps you speak with intention and listen with purpose.
Innovating & Investing with Intention
The founding principle of entrepreneurialism remains strong at Arlington. As an organization celebrating our twenty-eighth year, it is essential always to return to our entrepreneurial roots and to begin to pass that spirit to future generations.
Interdisciplinary Innovation
Combining knowledge and methods from two or more disciplines to create a new, unified innovation.
When the entrepreneurial spirit—the engine of innovation—fades within an organization, the organization effectively becomes a sitting target for the next market disruption. It shifts from being a creator of the future to being a victim of it. Because Arlington is an interdisciplinary organization, we have an inherent edge. Namely, we have the capacity to combine two or more separate fields of study or practice to birth a creative solution to an old problem.
As examples, this year’s two new interdisciplinary innovations result in taxmanaged investment solutions for families that lower their overall costs. By lowering costs, higher net annual returns are generated which then can compound across decades in a family portfolio.
THE ARLINGTON ETF
Using our Investment Rule of 5 as a foundation, we launched the AQE Core ETF (Symbol: AQEC). This exchange-traded fund, like our legacy Quality Equity strategy, will pursue capital appreciation by owning high-quality companies for the long term. Significantly, the ETF structure affords the opportunity for portfolio rebalancing in a more tax-efficient manner.
The “Rule of 5” reflects Arlington’s disciplined approach to concentrate on Valuation (center all efforts on high-probability outcomes), Taxes and Expenses (arrange odds to favor the interests and success of our clients), Precision (streamline by removing duplication), Focus (avoid the underbrush of small stuff), and Capacity (maximize performance within capacity)
The initial seed capital for AQEC came from contributions of securities by Arlington clients in a tax-free transaction. This allowed these clients to contribute highly appreciated, low-basis securities while deferring capital gains on such securities in exchange for the broader, quality-focused holdings of AQEC. Any future ETFs we establish likely will utilize a similar seeding approach that could afford qualifying Arlington clients similarly impactful tax-planning benefits.
At Arlington, we believe financial capital is the fuel empowering a family’s broader vision and enduring legacy. Arlington Charitable Beta, launched in 2025, is a sophisticated, tax aware long/short structure that can create a powerful win-win for both tax advantage and philanthropic giving. The strategy is designed to simultaneously generate systemic tax losses that can offset gains from other family assets while also accumulating appreciated long equity positions which can be donated to supercharge highly tax efficient family charitable giving.
When these assets are donated, capital gains tax liabilities are eliminated, ensuring that 100% of the market value reaches the causes you value. This strategy can be highly effective for families who combine significant taxable income— whether a transaction in a closely held business in a specific year or significant recurring annual income—with a generous desire for impactful strategic philanthropic investment. When implemented thoughtfully, it can help families to compound investment returns and philanthropic impact across generations and communities.
PORTFOLIO DESIGN: INVESTING IN CLARITY
An investor should consider the investment objectives, risks, and charges and expenses of the fund carefully before investing. A prospectus for AQE Core ETF (AQEC) which contains this and other information about the fund may be obtained by calling (205) 488-4300 or by visiting https://www.arlingtonassetmanagement.com. The prospectus should be read carefully before investing. See also Important Information Regarding AQE Core ETF on pages 20-21.
For clients seeking simplicity, efficiency, and timely execution, Arlington has created investment objective-specific pooled investment vehicles that serve as building blocks for family portfolios. These include separate Global Equity, Private Credit, Private Equity, Hedged Strategy, and Private Real Estate funds. Outside of Private Equity, each Arlington vehicle is an evergreen fund structure that aligns with our clients’ and the firm’s time horizons. Even our Private Equity strategies are semi-evergreen due to their innovative structuring.
IMPORTANT INFORMATION REGARDING
AQE CORE ETF (AQEC)
Arlington Partners, LLC, an SEC-registered investment adviser, serves as the investment adviser (the “Adviser”) to AQEC. While the Adviser intends to manage AQEC in a taxefficient manner, there can be no assurance that it will be able to do so. Prospective investors should not invest in AQEC with an expectation that they will realize any tax benefits. Nothing in this communication constitutes tax advice. Investors are urged and advised to consult their own tax adviser with respect to the tax consequences of an investment in AQEC. Arlington Partners’ registration as an investment adviser with the SEC does not imply that Arlington Partners or any person associated with Arlington Partners has achieved a certain level of skill or training.
Investing involves risk including the possible loss of principal. AQEC is classified as non-diversified, meaning it invests a large portion of its assets in a small number of issuers or counter parties. This increases exposure to individual issuer or counter party risks and makes AQEC more sensitive to single economic or political events which can significantly increase volatility and lead to sharp declines in AQEC’s performance if one issuer or counter party experiences adverse conditions.
Although the Adviser has been in the investment management business for over 20 years, it has not previously managed an ETF. Accordingly, investors in AQEC bear the risk that the Adviser’s inexperience may limit its effectiveness.
The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.
The Fund’s principal investment risks include Active Management Risk, Large Capitalization Securities Risk, Growth Style Risk, and Risks of Small and Medium Capitalization Companies. For additional information about these and other fund risks, please refer to the “Principal Investment Risks” section of the prospectus.
ETFs are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF’s shares may trade at a premium or discount to its net asset value, an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact an ETF’s ability to sell its shares. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns.
Distributor: Foreside Fund Services, LLC. Arlington Partners, LLC is not affiliated with Foreside Fund Services, LLC.
We will prepare your family for the future as it will be.
