Investment Descriptions and Options

Transcription

1 Investment Descriptions and Options National Philanthropic Trust (NPT) provides several investment opportunities to diversify and grow your charitable contributions. To ensure that your contribution to NPT is professionally managed, investment funds have been carefully selected for their history of superior performance and their high-quality portfolio managers. Several investment strategies are available, each with different objectives and risk/reward profiles to meet your investment goals. Please review the following portfolio descriptions and investments before making your recommendation. If you need assistance, call toll-free at (888) or send an to Options for Allocating Contributions Option 1 Money Market Funds Money market funds take the most conservative approach to maintaining original principal in the fund. UBS Select Government Institutional Fund UBS Select Treasury Institutional Fund Option 2 Actively Managed Model Portfolios - Mutual Funds Utilizing best-in-class mutual funds, these actively managed portfolios have the potential to out-perform the market. Each strategy has an increasingly higher risk/ reward profile. Conservative Portfolio Balanced Portfolio Total Return Portfolio Growth Portfolio Option 3 Index Fund Model Portfolios - Exchange Traded Funds Utilizing low-cost exchange-traded funds, these portfolios provide an economical way to achieve a comparable return to the market. Each strategy has an increasingly higher risk/reward profile. Conservative Portfolio Balanced Portfolio Total Return Portfolio Growth Portfolio Option 4 Personal Giving Strategy Custom Allocation Implement a personalized giving strategy from among the following best-in-class mutual funds based on your objectives. We encourage you to consult with your investment advisor when using this option. Blackrock ishares Russell 1000 Prudential Jennison 20/20 Focus JP Morgan Mid Cap Value Janus Enterprise Fund Class T T. Rowe Price Diversified Small Cap Growth Fund Fidelity Advisors Small Cap Value American Century International Core Equity Fund WCM Focused International Growth Fund Federated International Small-Mid Company Aberdeen Emerging Markets Fund Baron Emerging Markets Fund Fidelity Advisors Emerging Markets Western Asset Core Fund Loomis Sayles Core Plus Bond Fund Calvert Ultra-Short Bond Fund Prudential Global Real Estate Principal Diversified Real Asset UBS Select Government Institutional Fund UBS Select Treasury Institutional Fund Please note: NPT s Board of Trustees has sole responsibility for investing the donor-advised fund assets and may adjust the composition of the investments from time to time. Please remember, there is no assurance that any strategy (or underlying fund) will achieve its objective. The data featured herein represents past performance, which is no guarantee of future results. Share prices and investment returns will fluctuate with changes in the market. Page 1 of 6

2 Option 1: Money Market Fund Money Market Fund 100% Money Market * 0.18% (18 basis points) - UBS Select Government Institutional Fund 0.18% (18 basis points) - UBS Select Treasury Institutional Fund Risk Profile: Most conservative/lowest risk Strategy: Seeks to preserve principal Grantmaking: For donors who wish to maintain original capital throughout the duration of the fund 100% UBS Select Government Institutional Fund OR 100% UBS Select Treasury Institutional Fund Option 2: Actively Managed Portfolios - Mutual Funds Conservative Portfolio 25% US Equities 15% International Equities 50% Fixed Income 0.60% (60 basis points) + Risk Profile: Conservative/lower risk Strategy: Seeks to safeguard principal, provide liquidity and generate total return with conservative exposure to market volatility Grantmaking: For donors who plan to recommend granting the balance of the account within 5 years 15% Blackrock ishares Russell % JP Morgan Mid Cap Value 2.5% Janus Enterprise Fund Class T % American Century International Core Equity Fund % WCM Focused International Growth Fund ++ 18% Western Asset Core Fund 18% Loomis Sayles Core Plus Bond Fund 9% Calvert Ultra-Short Bond Fund 5% Prudential Global Real Estate 5% Principal Diversified Real Asset Fund Balanced Portfolio 20% International Equities 40% Fixed Income 0.60% (60 basis points) + Risk Profile: Moderate/modest risk Strategy: Provide long-term capital growth and reasonable capital preservation through an asset allocation of equities, bonds and/or international investments Grantmaking: For donors who plan to recommend granting the balance of the account within 10 years 20% Blackrock ishares Russell % JP Morgan Mid Cap Value 2.5% Janus Enterprise Fund Class T % American Century International Core Equity Fund % WCM Focused International Growth Fund % Aberdeen Emerging Markets 2.5% Baron Emerging Markets Fund ++ 14% Western Asset Core Fund 14% Loomis Sayles Core Plus Bond Fund 7% Calvert Ultra-Short Bond Fund 5% Prudential Global Real Estate 5% Principal Diversified Real Asset *The Management Fee is the overall portfolio cost based on underlying expense ratios and their weighted allocations. NPT recalculates this fee periodically throughout the year. + Reflects expense ratio of underlying funds in the portfolio as of September 30, Added to portfolio 2016 Page 2 of 6

3 Option 2: Actively Managed Portfolios - Mutual Funds (Continued) Total Return Portfolio 35% US Equities 25% International Equities 30% Fixed Income 0.66% (66 basis points) + Risk Profile: Moderate growth/moderate risk Strategy: Seeks to enhance performance potential and appreciation consistent with preservation of capital and prudent risk taking account for a period greater than 10 years and/ or intend to name charitable beneficiaries 20% Blackrock ishares Russell % JP Morgan Mid Cap Value 5% Janus Enterprise Fund Class T % American Century International Core Equity Fund % WCM Focused International Growth Fund ++ 5% Aberdeen Emerging Markets 5% Baron Emerging Markets Fund ++ 10% Western Asset Core Fund 10% Loomis Sayles Core Plus Bond Fund 5% Calvert Ultra-Short Bond Fund 5% Prudential Global Real Estate 5% Principal Diversified Real Asset Growth Portfolio 35% International Equities 20% Fixed Income 10% REIT 0.76% (76 basis points) + Risk Profile: Growth/higher risk and potential for highest return Strategy: Focuses on domestic stock funds, but also includes exposure to international stock funds for diversification and performance potential, carrying the highest risk of our model portfolios account for a period greater than 10 years and/ or intend to name charitable beneficiaries 15% Blackrock ishares Russell % JP Morgan Mid Cap Value 5% Janus Enterprise Fund Class T % American Century International Core Equity Fund % WCM Focused International Growth Fund ++ 5% Aberdeen Emerging Markets 5% Baron Emerging Markets Fund ++ 6% Western Asset Core Fund 6% Loomis Sayles Core Plus Bond Fund 3% Calvert Ultra-Short Bond Fund 10% Prudential Global Real Estate 5% Principal Diversified Real Asset Option 3: Index Fund Portfolios - Exchange-Traded Funds Conservative Portfolio 25% US Equities 15% International Equities 50% Fixed Income 0.16% (16 basis points) Risk Profile: Conservative/lower risk Strategy: Seeks to safeguard principal provide liquidity and generate total return with conservative exposure to market volatility Grantmaking: For donors who plan to recommend granting the balance of the account within 5 years 15% ishares Russell 1000 Broad Index 5% ishares Russell Mid-Cap 15% ishares MSCI EAFE Index 5% Wisdom Tree International Real Estate 5% ishares Barclays TIPS Bond 36% ishares Barclays Aggregate Bond 9% ishares 1-3 Year Credit Bond + Reflects expense ratio of underlying funds in the portfolio as of September 30, Added to portfolio 2016 Page 3 of 6

4 Option 3: Index Fund Portfolios - Exchange-Traded Funds (Continued) Balanced Portfolio 20% International Equities 40% Fixed Income 0.19% (19 basis points) Risk Profile: Moderate/modest risk Strategy: Provide long-term capital growth and reasonable capital preservation through an asset allocation of equities, bonds and/or international investments Grantmaking: For donors who plan to recommend granting the balance of the account within 10 years 20% ishares Russell 1000 Broad Index 5% ishares Russell Mid-Cap 15% ishares MSCI EAFE Index 5% ishares MSCI Emerging Markets Index 5% Wisdom Tree International Real Estate 5% ishares Barclays TIPS Bond 28% ishares Barclays Aggregate Bond 7% ishares 1-3 Year Credit Bond Total Return Portfolio 35% US Equities 25% International Equities 30% Fixed Income 0.24% (24 basis points) Risk Profile: Moderate growth/moderate risk Strategy: Seeks to enhance performance potential and appreciation consistent with preservation of capital and prudent risk taking account for a period greater than 10 years and/or intend to name charitable beneficiaries 20% ishares Russell 1000 Broad Index 10% ishares Russell Mid-Cap 15% ishares MSCI EAFE Index 10% ishares MSCI Emerging Markets Index 5% Wisdom Tree International Real Estate 5% ishares Barclays TIPS Bond Fund 20% ishares Barclays Aggregate Fund 5% ishares Barclays 1-3 Year Credit Bond Growth Portfolio 35% International Equities 20% Fixed Income 10% REIT Investment Fee: 0.28% (28 basis points) Risk Profile: Growth/higher risk and potential for highest return Strategy: Focuses on domestic stock funds, but also includes exposure to international stock funds for diversification and performance potential, carrying the highest risk of our model portfolios account for a period greater than 10 years and/or intend to name charitable beneficiaries 15% ishares Russell 1000 Broad Index 10% ishares Russell Mid-Cap 25% ishares MSCI EAFE Index 10% ishares MSCI Emerging Markets Index 12% ishares Barclays Aggregate Fund 10% Wisdom Tree International Real Estate 3% ishares Barclays 1-3 Year Credit Bond 5% ishares Barclays TIPS Bond Page 4 of 6

5 Option 4: Personal Giving Strategy - Custom Allocation of Mutual Funds Personal Strategy Donor recommends an investment allocation among the investment offerings. Blended fee based on investment selection. For donors who seek to create an investment strategy that meets particular risk tolerance objectives and return goals. We strongly encourage donors to consult with their investment advisor when determining their investment allocation. Donors may customize the allocation of the investment of their donor-advised fund among the best-in-class mutual funds listed on page 1. Portfolio and Fund Money Market * Fund Fees Allocation UBS Select Government Institutional Fund 0.18% 100% Money Market 0.29% 0.12% 0.12% UBS Select Treasury Institutional Fund 0.18% 100% Money Market 0.14% 0.05% 0.04% Actively Managed Model Portfolio * Portfolio Weighted Fees Allocation Conservative Portfolio 0.60% 50% Equities/50% Fixed Income 7.30% 2.80% 6.25% Balanced Portfolio 0.60% 60% Equities/40% Fixed Income 7.30% 2.14% 6.11% Total Return Portfolio 0.66% 70% Equities/30% Fixed Income 8.33% 2.99% 7.12% Growth Portfolio 0.76% 80% Equities/20% Fixed Income 8.42% 2.83% 7.25% Index Fund Model Portfolio * Portfolio Weighted Fees Allocation Conservative Portfolio 0.16% 50% Equities/50% Fixed Income 7.73% 3.27% 4.32% Balanced Portfolio 0.19% 60% Equities/40% Fixed Income 9.92% 4.35% 8.14% Total Return Portfolio 0.24% 70% Equities/30% Fixed Income 12.08% 4.97% 9.47% Growth Portfolio 0.28% 80% Equities/20% Fixed Income 9.90% 3.70% 9.03% *Through September 30, 2016 Note: The Passive portfolios, although similarly named, had been allocated differently than the Actively Managed portfolios since inception. It was not until 3Q14 that the allocation of the Active and Passive portfolios were aligned. Page 5 of 6

6 Portfolio and Fund (Continued) Mutual Fund * Portfolio Ticker Fees Category Blackrock ishares Russell 1000 ETF IWB 0.15% Large Cap Blend 14.80% 10.65% 16.26% Prudential Jennison 20/20 Focus PTWAX 1.18% Large Cap Growth 10.45% 6.36% 12.32% JP Morgan Mid Cap Value JMVSX 0.99% Mid Cap Value 13.40% 9.98% 17.10% Janus Enterprise Fund JMGTX 0.74% Mid Cap Growth 17.15% 11.88% 17.10% Fidelity Small Cap Value FCVIX 1.19% Small Cap Value 11.92% 7.94% 17.36% T. Rowe Price Diversified Small Cap Growth PRDSX 0.82% Small Cap Growth 12.10% 8.47% 17.59% American Century International Core Equity ACIMX 1.02% International Blend 3.95% (0.45%) 7.43% WCM Focused International Growth WCMIX 1.04% International Growth 14.84% 6.51% 11.14% Federated International Small Co. ISCAX 1.86% Foreign Small-Mid Cap 3.35% 0.45% 9.12% Fidelity Advisors Emerging Markets FAMKX 1.52% Emerging Markets 17.63% 1.97% 4.72% Aberdeen Emerging Markets ABEMX 1.10% Emerging Markets 18.83% (0.32%) 4.25% Baron Emerging Markets Fund BEXIX 1.20% Emerging Markets 17.28% 3.19% 8.20% Western Asset Core Plus Bond Fund WACPX 0.45% Core Plus Bond 7.48% 5.15% 4.98% Calvert Ultra-Short Bond Fund CULYX 0.56% Short-Term Bond 1.98% 1.08% 1.42% Loomis Sayles Core Plus Bond Fund NERYX 0.49% Core Plus Bond 9.22% 4.52% 5.07% Prudential Global Real Estate PURZX 0.97% REIT 10.26% 6.73% 11.85% Principal Diversified Real Asset PRDPX 1.02% Real Assets 5.67 (0.73%) 3.01% *Through September 30, 2016 Page 6 of 6