The Chief Investment Office

Transcription

1 The Chief Investment Office Chris Hyzy Chief Investment Officer Bank of America Global Wealth & Investment Management December 2017 The Chief Investment Office (CIO) has a mission to perform for you supporting your advisor with a disciplined investment process. We are committed to helping you achieve financial outcomes aligned to your personal goals, from leveraging actionable insights for setting capital market assumptions and asset allocation recommendations to conducting a rigorous due diligence and investment selection process and then building and measuring the continuing performance of our CIO portfolios. See inside for more on our team and the resources available to you and your advisor. Life s better when we re connected Merrill Lynch Wealth Management makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S) and other subsidiaries of Bank of America Corporation (BofA Corp.). Investment products: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value MLPF&S is a registered broker-dealer and Member SIPC. MLPF&S makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of BofA Corp.

2 Meet the Team INVESTMENT STRATEGY Actionable insights and thought leadership to enhance client conversations and deepen relationships. Mary Ann Bartels Head of Merrill Lynch Wealth Management (MLWM) Portfolio Strategy Responsible for Investment Guidance and portfolio strategy for Merrill Lynch financial advisors and clients. Joe Quinlan Head of Market and Thematic Strategy Responsible for market and thematic research across U.S. Trust and Merrill Lynch channels. Niladri Mukherjee Director of Portfolio Strategy, PBIG and International Responsible for macro investment and portfolio strategy for the Private Banking and Investment Group (PBIG) and International businesses. Ehiwario Efeyini SVP, Senior Research Analyst Responsible for the analysis and communication of global economic and financial market trends, in support of CIO investment strategy. John Donovan Head of Fixed Income and Trading Heads investment insight and portfolio strategy for all aspects of fixed income across Global Wealth & Investment Management (GWIM). Matthew Diczok Managing Director, Fixed Income Strategist Responsible for fixed income strategy across MLWM and U.S. Trust. PORTFOLIO MANAGEMENT SOLUTIONS A comprehensive offering with multi-asset class and modular single asset class portfolios to enable personalization for client needs. Joe Curtin Head of Global Portfolio Solutions and Institutional Heads the Global Portfolio Solutions (GPS) and Institutional Investments group. Vineet Budhraja Head of Portfolio Management Oversees suite of MLWM managed strategies, including active, passive, hybrid, and Alternative Investment portfolios. David Koh Oversees portfolio strategy and investment solutions for Ultra High Net Worth (UHNW), international and institutional clients. Michael McManus Responsible for CIO portfolio strategy within Merrill Edge. Anil Suri Head of Portfolio Analytics and Innovation Development Center Oversees portfolio analytics and innovation development, including Capital Market Assumptions (CMA), Strategic Asset Allocation (SAA), and dynamic asset allocation. Jackie VanderBrug Responsible for Impact Investing strategy and thought leadership; CIO impact portfolios and Proprietary Impact Investing Solutions. Harald Gundersen Owns coordination of investment products (CIO Portfolios) across the CIO and Managed Solutions Group (MSG) teams. DUE DILIGENCE In-depth analysis of risk and return drivers, identification of high conviction and innovative solutions to help clients meet their goals. Anna Snider Head of Due Diligence Heads Investment Manager research to source and monitor high quality investment opportunities for GWIM clients. Jay Thomas Head of ETF Due Diligence Responsible for due diligence coverage of Exchange Traded Funds. Govind Kilambi Alternative Investments Due Diligence Executive Responsible for Private Equity and Real Assets due-diligence across the GWIM platform. Jim Peters Head of Global Equity Due Diligence Manages the CIO global equity due diligence team providing insights and implementation ideas for Separately Managed Accounts (SMAs) and Mutual Funds. Scott Zavack Head of Hedge Fund Investment Due Diligence Responsible for CIO Due Diligence of Hedge Fund Strategies. Lance B. Fraser Alternative Investments Due Diligence Executive Responsible for business due diligence process for private equity and hedge funds. Jeff Miller Director, Traditional Fixed Income Due Diligence Oversees due diligence on Taxable and Tax-Exempt fixed income managers with a focus on global bond and preferred security managers. CHIEF OPERATING OFFICE, BUSINESS MANAGEMENT AND Drive strategic business initiatives focused on client strategy, acts as liaison between CIO and MLWM, and provides oversight and monitoring for investment capabilities. Deb Bailey Head of Business Management and Investment Oversight Leads investment oversight and monitoring capabilities, as well as the tools, technology, and processes for the CIO. Sid Assomull Chief Operating Officer Responsible for leading strategic CIO business objectives focused on enhancing the client strategy.

3 How the CIO Supports You Our Chief Investment Office will help you and your advisor navigate today s dynamic financial marketplace. This team draws from some of the best primary research and insights to deliver investment strategy and build portfolios, monitoring performance and making adjustments as needed. The diagram below further outlines the specific benefits offered to advisors and their clients along each step of the investment process. Market Viewpoints Macro, Market & Portfolio Strategy Thematic Investment Trends Asset Allocation and Portfolio Management Wealth Structuring & Planning Whitepapers Dedicated Investment Strategy Committee (ISC) that sets investment policy across asset classes and financial markets Strategic and Topical Whitepapers Due Diligence & Manager Research Dedicated manager and solutions research team on the entire platform of Mutual Funds, Separate Accounts, Exchange Traded Funds, Indices, Hedge Funds, Private Equity, Real Estate, Real Assets Environmental, Social and Governance (ESG)/Impact investing research Research across traditional and alternative investments Manager Insights Analysis Strategic partnership with Morningstar to allow for coverage of over 1,800 funds and managers Portfolio Construction & Portfolio Management Dedicated asset allocation and risk analytics team Dedicated centralized portfolio management Innovative portfolio construction techniques and tools CIO portfolio insights CIO Portfolios Full suite of portfolios for all wealth management clients and risk profiles Actively managed single-asset and multi-asset-class portfolios Risk management, diversification and due diligence processes seek to mitigate, but cannot eliminate risk, nor do they imply low risk. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets.

4 The CIO Investment Process Macro Strategy, Real Field-Based Research, and Portfolio Strategy Portfolio Management The CIO Investment Process Due Diligence Asset Allocation/ Portfolio Construction & REVIEW Capital Market Assumptions & Strategic Allocation Tactical Allocation Due Diligence Investment Selection & Portfolio Construction Implement Strategy Performance Measurement Due diligence processes seek to mitigate, but cannot eliminate risk, nor do they imply low risk. Asset allocation does not ensure a profit or protect against loss in declining markets.

5 Key CIO Resources MARKET VIEWPOINTS CIO Viewpoint A monthly update on the market outlook of the Investment Strategy Committee, with the committee s position on 18 asset classes and related commentary. CIO Capital Market Outlook A report with commentary on market trends and releases of economic data, a summary of the past week s market activity and data on performance of key indexes. Investment Insights CIO Chart Book Timely reports around important changes in the markets and economy. A presentation-style report released after the close of each quarter with brief commentary and an extensive collection of exhibits on major economic and market trends and metrics. PORTFOLIO ADMINISTRATION IMPLEMENTATION GUIDANCE Due Diligence Whitepaper GPS Quarterly Foundations of Guidance Whitepaper A description of the CIO Due Diligence team s role of identifying investment managers and strategies determined to have a high probability of meeting or outperforming their objectives over a market cycle with appropriate risk. A highly graphical recap of the previous quarter s market activity and summaries of the CIO s economic and investment outlooks and its strategic and tactical portfolio positioning. An overview of two methodologies developed by the CIO the Merrill Lynch Capital Market Assumptions and the Merrill Lynch Strategic Asset Allocations and their relevance for individual investors. The Navigator A client-approved quarterly report from the Alternative Investments team that reviews the previous quarter and previews the next quarter.

6 A Team of Experts DEDICATED TEAM MEMBERS ACROSS SPECIALTIES DEGREES 130 MEMBERS 16 Investment Strategy Portfolio Construction 44 & Management 3 Investment Oversight 58 Due Diligence 9 Business Management 79 MASTERS Finance Investment Management Financial Engineering Statistics Computational Finance Computer Science 5 PhDs Economics Financial Engineering Mathematics Electrical Engineering EXPERIENCE CHARTERHOLDERS 15 Average years of experience per professional 37 CFA 11 CAIA Data as of December 2017 Global Wealth & Investment Management Chief Investment Office (GWIM CIO) provides industry-leading investment solutions, portfolio construction advice and wealth management guidance. This material was prepared by the GWIM CIO and is not a publication of BofA Merrill Lynch Global Research. The views expressed are those of the GWIM CIO only and are subject to change. This information should not be construed as investment advice. It is presented for information purposes only and is not intended to be either a specific offer by any Merrill Lynch entity to sell or provide, or a specific invitation for a consumer to apply for, any particular retail financial product or service that may be available. This information and any discussion should not be construed as a personalized and individual client recommendation, which should be based on each client s investment objectives, risk tolerance, liquidity needs and financial situation. This information and any discussion also is not intended as a specific offer by Merrill Lynch, its affiliates, or any related entity to sell or provide, or a specific invitation for a consumer to apply for, any particular retail financial product or service. Investments and opinions are subject to change due to market conditions and the opinions and guidance may not be profitable or realized. Any information presented in connection with BofA Merrill Lynch Global Research is general in nature and is not intended to provide personal investment advice. The information does not take into account the specific investment objectives, financial situation and particular needs of any specific person who may receive it. Investors should understand that statements regarding future prospects may not be realized. Global Wealth & Investment Management (GWIM) is a division of Bank of America Corporation. Merrill Lynch Wealth Management, Merrill Edge, U.S. Trust, and Bank of America Merrill Lynch are affiliated sub-divisions within GWIM. Merrill Edge is available through MLPF&S, and consists of the Merrill Edge Advisory Center (investment guidance) and self-directed online investing. MLPF&S is a registered broker-dealer, Member SIPC and a wholly owned subsidiary of BofA Corp. U.S. Trust, Bank of America Private Wealth Management operates through Bank of America, N.A., and other subsidiaries of BofA Corp. Bank of America Merrill Lynch is a marketing name for the Retirement Services business of BofA Corp. The GWIM Investment Strategy Committee (GWIM ISC) is responsible for developing and coordinating recommendations for short-term and long-term investment strategy and market views encompassing markets, economic indicators, asset classes and other market-related projections affecting GWIM. All asset classes are not suitable for all investors. Each investor should select the asset classes for them based on their goals, time horizon and risk tolerance. CFA and Chartered Financial Analyst are registered trademarks owned by CFA Institute. CAIA is a registered certification mark owned and administered by the Chartered Alternative Investment Analyst Association Bank of America Corporation. All rights reserved. ARV4HGFD