LIFETIME WEALTH PORTFOLIOS

Transcription

1 LIFETIME WEALTH PORTFOLIOS LIFETIME WEALTH PORTFOLIOS Separately Managed Account Program REINHART PARTNERS Active Intermediate Fixed Income

2 Investment managers for the Lifetime Wealth Portfolio Separately Managed Account (LWP SMA) program are selected for their expertise in serving discerning investors who seek highly customized solutions, trading agility, targeted investment strategies, potential tax advantages, and a simplified fee structure. The investment manager you select creates a portfolio tailored to your individual financial goals and manages your portfolio according to your objectives. When selecting an LWP SMA investment manager, carefully consider each manager s unique investment philosophy. Aligning your investment manager s approach to your financial goals is key to the success of your investment portfolio. 2 lifetime wealth portfolios

3 THIS SUMMARY OF REINHART PARTNERS, INC. S INVESTMENT PHILOSOPHY PROVIDES A SNAP- SHOT OF THEIR APPROACH TO CONSTRUCTING AND MANAGING YOUR INVESTMENT PORTFOLIO. HERE WE ANSWER THE FOLLOW- ING QUESTIONS: Who Is Reinhart Partners? What Is Their Investment Approach? How Will They Build My Portfolio? What Will My Team Look Like? How Will They Stay on Track? What Are My Next Steps? WHO IS REINHART PARTNERS? Founded in 1991, Reinhart Partners, Inc. serves the investment management needs of a broad range of clients, from large corporations and public entities to successful individual investors. Reinhart Partners was founded on the principle that superior products and strong relationships are vital to creating successful investment strategies. Principles WHAT IS THEIR INVESTMENT APPROACH? As part of the Lifetime Wealth Portfolios Separately Managed Account program, Reinhart Partners manages Active Intermediate Fixed Income portfolios. Quality, stability, predictability, and performance are all key attributes of their fixed income management philosophy. Reinhart Partners Active Intermediate Fixed Income approach employs an active management strategy based on the belief that understanding the role of bonds in each client s investment strategy is essential for a successful fixed income portfolio. separately managed account program // reinhart partners 1

4 Fig. 1 range of investment options Lower Risk Higher Risk High Quality: Primarily A-rated or better. Duration Neutral: Portfolio duration within 20% of benchmark index. Government Only R High Quality Investment Grade Investment Grade High Yield Well-Structured: Reinhart Partners seeks to generate predictable cash flows at the portfolio and security levels. Portfolios underweight callable bonds and mortgage-backed securities. Highly Liquid: Primarily highly liquid bonds from large issuers, with multiple securities across the yield curve. R Duration Neutral R Highly Predictable Cash Flow (Bullet Bonds) Interest Rate Anticipation Leveraged Strategy Unpredictable Cash Flow (Calls, Sinks, Prepays) R Highly Liquid (Cash, US Treasuries, Benchmark Agencies) Readily Marketable (High Quality Corporate, Agency MBS) Illiquid (High Yield, CMOs, Structured Products) 2 lifetime wealth portfolios

5 Reinhart Partners fixed income portfolios contain high-quality securities spread across a diverse range of industries, sectors, and issuers. Construction HOW WILL THEY BUILD MY PORTFOLIO? Reinhart Partners goal is to structure Some of the analyses employed include: fixed income portfolios that closely match What-if analysis allows trades to be the risk attributes of the underlying tested before being executed. benchmark while seeking a yield higher than that benchmark. This provides the best opportunity to outperform without taking undue risk. Reinhart Partners fixed income portfolios contain high-quality securities spread across a diverse range of industries, sectors, and issuers. They typically hold positions, and the maximum exposure to any one issuer is no greater than 5%. Reinhart Partners aims to identify investments with lower risk and high predictability of cash flow, with the goal of producing steady returns for investors who seek stability in all kinds of markets. MONITORING PORTFOLIOS Employing powerful research tools, Reinhart Partners continuously monitors the markets as well as each individual portfolio for opportunities to enhance performance. Scenario analysis evaluates portfolio performance in a variety of market environments. Option adjusted spread and Monte Carlo analysis provide information on security and portfolio performance under varying interest rate and credit spread conditions. Compliance module allows Reinhart to enter quality, maturity, liquidity, and asset class restrictions, insuring compliance with Investment Policy Statement and regulatory requirements. separately managed account program // reinhart partners 3

6 Management WHAT WILL MY TEAM LOOK LIKE? Reinhart Partners is 100% employee owned by talented people with combined experience of several decades of industry expertise. Together they apply their talents and knowledge with a focus on service as much as the bottom line. Reinhart Partners Fixed Income Management Team includes the firm s senior leadership and most skilled analysts, all with more than a decade of experience at the firm. Monitoring HOW WILL THEY STAY ON TRACK? REBALANCING AND REALLOCATING Reinhart Partners periodically rebalances your portfolio to keep it aligned with long-term asset allocation targets. They seek to maintain consistency in their investment strategy models, reviewing and adjusting them periodically to limit short-term buying and selling within your portfolio. PROTECTION AND GUIDANCE FOR LIFE As you move through the stages of your life, your needs and risk profile will likely change. The Lifetime Wealth Portfolios approach ensures that your portfolio continues to reflect your goals and individual needs. Your adviser is committed to reviewing your account with you once or more each year and recommending solutions to meet your life insurance protection needs and to maximize your portfolio s value over time. As you move through the stages of your life, your needs and risk profile will likely change. The Lifetime Wealth Portfolios approach ensures that your portfolio continues to reflect your goals and individual needs. 4 lifetime wealth portfolios

7 Get Started WHAT ARE MY NEXT STEPS? The Lifetime Wealth Portfolios Separately Managed Account program is offered exclusively through Eagle Strategies LLC. Please contact your financial adviser for more information and to learn how a separately managed account managed by Reinhart Partners can help you achieve your financial goals. Reinhart Partners, Inc. is a manager to Eagle Strategies LLC through the LWP SMA program. The SMA Manager will manage client accounts using a strategy designed to meet your investment objectives and risk tolerance. Once the account is open and funded, the SMA Manager will be responsible for ongoing maintenance of the account. Should you decide to invest in the SMA program, please refer to the Investment Management Agreement as well as the Disclosure Brochure for Eagle Strategies for complete information on the respective roles and responsibilities. Reinhart Partners, Inc. and Eagle Strategies LLC are registered investment advisers with the Securities and Exchange Commission and are not affiliated companies. separately managed account program // reinhart partners 5

8 Eagle Strategies LLC 51 Madison Avenue New York, NY (01/2012) SMRU (exp. 03/16/2013)