Morningstar Investment Services

Transcription

1 Morninstar Investment Services Peter Duery, SVP National Sales and Distribution For Financial Advisor Use Only-Not for Use With the Public. This presentation is not complete without accompanyin disclosures Morninstar Investment Services, Inc. All rihts reserved. The Morninstar name and loo are reistered marks of Mornin star, Inc. All other marks are the property of the respective owners. Morninstar Investment Services, Inc. is a reistered investment advisor and wholly owned subsidiary of Mo rninstar, Inc. The information contained in this presentation is the proprietary material of Morninstar Investment Services. Reproduction, transcription or other use, by an y means, in whole or in part, without the prior written consent of Morninstar Investment Services is prohibited.

2 Who We Are Morninstar Investment Manaement As part of Morninstar s Investment Manaement roup, Morninstar Investment Services provides fee-based, discretionary asset manaement prorams that financial advisors can offer their clients. $180B Total assets under manaement and advisement* 30+ Years of asset allocation and investment research experience to draw upon** 100+ Investment professionals within Morninstar s Investment Manaement division *Data as of June 30, Includes Morninstar Associates, Ibbotson Associates, Morninstar Investment Services, Morninstar Investment Manaement Euro pe, and Ibbotson Associates Australia. **Ibbotson Associates, Inc. was established in 1977, Morninstar Associates, LLC was established in 1999, and Morninstar Inv estment Services, Inc. was established in 2001.

3 Our Portfolios Portfolio availability varies based on relationship.

4 Who We Are Our Investment Team All members of the Morninstar Investment Services investment team are CFA charterholders; they brin an averae of 20 years of experience, includin investin throuh sinificant market cycles. Morninstar s Investment Manaement roup includes Morninstar Associates, Ibbotson Associates, and Morninstar Investment Se rvices, which are reistered investment advisers and wholly owned subsidiaries of Morninstar, Inc.

5 Workin With Morninstar Investment Services Our Capabilities We provide a wide rane of innovative solutions to financial advisors and their clients. Our lineup of manaed portfolios is desined to be a fundamental part of a lon-term investin plan. Availability of portfolios may vary accordin to business relationship and services provided. Taxable and tax -deferred options available.

6 Our Investment Process Portfolio Construction: Overview To keep our portfolios well positioned throuh the market s ups and downs, we use a time-tested, repeatable process. For illustrative purposes only. There is no assurance that the techniques and strateies discussed are suitable for all inves tors or will yield positive results.

7 Hihliht: Our Manaer Research Process

8 Manaer Selection Makin the Most of Active Manaement Morninstar, Inc. has been refinin the manaer research process for decades. Our investment manaers are rooted in this expertise. Dedicated Portfolio Manaers trained in Morninstar s, Inc. fund analysis Internally enerated qualitative reviews Proprietary performance screens and rankins In-house software Manaer access Collaborative environment

9 Our Select Stock Basket Portfolios

10 Select Stock Basket Portfolios Depth of Research Morninstar s stock analysts are reconized by leadin publications like The Wall Street Journal and MarketWatch. Focus and key tenets of their research: Look for what we see are superior businesses that trade at discounts to the Morninstar, Inc. Analyst estimate of their fair values Free cash flow is what matters, not reported earnins A firm that rows without earnin its cost of capital destroys lon-term business value Shareholder value is created by maximizin the return on invested capital Focus on firms whose businesses display moat-like characteristics. Per Hulbert Financial Diest s performance rankins from the October 2007 bull-market peak throuh Jan. 31 of 2015, based on performance of Tortoise and Hare model portfolios featured in StockInvestor. The performance of the Tortoise and Hare portfolios manaed by Morninstar Investment Services will be different than the ones featured in the StockInvestor.

11 Select Stock Baskets Portfolios Custom Series Select Stock Baskets o beyond a one size fits all approach. These portfolios offer tax manaement and customization, combined with our investment manaement expertise. Customized portfolio of individual equities 25 to 35 of our hihest conviction stock ideas Tailored to a client s needs Restrict sector, industry, or individual stock exposure Combine with a portfolio of fixed-income mutual funds or ETFs (80/20, 65/35, 50/50) Accommodate current client holdins* Transfer existin holdins Portfolio can be built around client s other holdins Actively manaed to help achieve added value Buy and sell discipline Optimal balance of risk and reward Mindful of tax and cost implications $250,000 minimum *Initial and subsequent fundin in the client s account may be in cash, and/or transfer of positions currently held includin common stocks, ETFs and mutual funds; due to liquidity restrictions and tradin constraints, any position that is transferred in may be rejected and required to be rem ove from the account. For Illustrative Purposes only. Data and information is subject to chane at anytime without notice. Portfolio tax manaement does not take into consideration your entire financial plan and should not be considered tax or financial plannin advice. Please consult a tax and/or financial professional for advice specific to your individual circumstances.

12 Select Stock Baskets Portfolios Our Portfolios Custom Series Strateist Series Global Equity Equity Income Capital Appreciation Small/Mid-Cap Equity Forein Equity Tortoise Portfolio Hare Portfolio Dividend Portfolio U.S. Wide Moat Focus

13 Fee Information

14 Mutual Fund Portfolios Competitive Fee Structure Mutual Fund Portfolios Up to $500,000 Next $500,000 Next $1MM Over $2MM Morninstar Investment Services* 0.40% 0.35% 0.30% 0.20% Advisory Firm** 1.10% 1.05% 1.00% 0.90% Total Annual Fee 1.50% 1.40% 1.30% 1.10% Account Minimum: $50,000 (lower in family plan) Client fee does not include the mutual funds expenses Advisor fee can be discounted in 5 bps increments *MIS Minimum Annual Fee is $200 for those accounts not held at BNY. **Please note that fees may vary based on business relationships.

15 ETF Portfolios Competitive Fee Structure ETF Portfolios Up to $1MM Next $4MM Thereafter Morninstar Investment Services* 0.30% 0.25% 0.20% Advisory Firm** 1.10% 1.10% 1.10% Total Annual Fee 1.40% 1.35% 1.30% $50,000 account minimum Client fee does not include the underlyin ETF s expenses Client fee does not include costs associated with custody/clearin/execution Advisor fee can be discounted in 5 bps increments *MIS Minimum Annual Fee is $150. **Please note that fees may vary based on business relationships.

16 Select Stock Baskets Competitive Fee Structure Select Stock Baskets Up to $1MM Next $4MM Thereafter Morninstar Investment Services* 0.55% 0.50% 0.45% Advisory Firm** 1.10% 1.10% 1.10% Total Annual Fee 1.65% 1.60% 1.55% Account minimums: Custom Series $250,000, Strateist Series all-equity $100,000, Strateist with fixed-income allocation (80/20, 65/35, 50/50) $250,000 Client fee does not include costs associated with custody/clearin/execution Client fee does not include the underlyin mutual fund or ETF expenses, if added to the portfolio Advisor fee can be discounted in 5 bps increments *MIS Minimum Annual Fee is $550 for Strateist Series and $1375 for Custom Series. **Please note that fees may vary based on business relationships.

17 Resources for You

18 Website Tour Dedicated Web Platform For illustrative purposes only.

19 Website Tour Tools to Help You Analyze Portfolios For illustrative purposes only.

20 Website Tour Risk Tolerance Questionnaire and Co-Branded Proposal For illustrative purposes only.

21 Website Tour Robust Reports for Current Clients For illustrative purposes only.

22 Website Tour Supplementary Marketin Material For illustrative purposes only.

23 Workin With Morninstar Investment Services Your Sales Team Reach our sales team members at General Information Internal Service Representatives Peter Duery National Director Reion 1 Aaron Peterson aaron.peterson@morninstar.com Reion 2 Justin Stender justin.stender@morninstar.com Reion 3 Steven Geier steven.eier@morninstar.com Reion 4 Brad Murphy brad.murphy@morninstar.com Reion 5 Mike Reeves mike.reeves@morninstar.com Reion 6 John Green john.reen@morninstar.com Reion 7 Todd Schaul todd.schaul@morninstar.com Reion 8 Tracy Uner tracy.uner@morninstar.com Reion 9 Adam Herakovich adam.herakovich@morninstar.com Reion 10 Andy Justice andy.justice@morninstar.com Reion 11 Matthew Ochoa matthew.ochoa@morninstar.com Ext. 1 Ext. 2 Ext. 3 Ext. 4 Ext. 5 Ext. 6 Ext. 7 Ext. 8 Ext. 9 Ext. 10 Ext. 11

24 Disclosure The opinions expressed herein are those of Morninstar Investment Services, are as of the date written and are subject to cha ne without notice, do not constitute investment advice and are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warr anted to be correct, complete or accurate. Morninstar Investment Services shall not be responsible for any tradin decisions, damaes, or other loses resultin from, or related to, the information data, analyses or opinions or their use. The Morninstar Investment Manaement division is a division of Morninstar and includes Morninstar Associates, Ibbotson Ass ociates, and Morninstar Investment Services, all reistered investment advisors and wholly owned subsidiaries of Morninstar, Inc. Ibbotson Associates is a reistered investment advisor and wholly-owned subsidiary of Morninstar and serves as a sub-advisor to the Morninstar Manaed Portfolios proram. Past performance is no uarantee of future results. Neither diversification nor asset allocation ensure a profit or uarantee aainst a loss. Portfolio The portfolio returns presented are derived from seeded portfolios. For inception dates, please refer to our Websit e for a complete list. Each model portfolio is similar to the investment strateies manaed for clients on a discretionary basis under the Morninstar Manaed Portfolios proram ( Proram ). Each model portfolio is desined to achieve a certain stratey and consists primarily of mutual funds ( MF ), exchane -traded funds ( ETF ) and equity securities ( Equity ) (each a Stratey Portfolio, collectively Stratey Portfolios ) Each Stratey Portfolio will invest in one or a combination of the aforementioned securities. The Stratey Portfolios have similar investment objectives and strateies as the portfolios recommended to individual clients. The purpose in presentin Stratey Portfolio performance is to provide a historical indication of the performance of the Stratey Portfolio. The Stratey Portfolio may not have containe d and/or currently contain the same holdins as the holdins currently underlyin this Stratey Portfolio.