PMS 2622 PMS % Blk PMS 390

Transcription

1 at a glance THE CAMBRIDGE ASSET ALLOCATION PLATFORM (CAAP) ALLOWS YOU ACCESS TO THE BENEFITS OF ACCOUNTS MANAGED BY SOME OF THE WORLD S LEADING INVESTMENT PROFESSIONALS. USING A TIME-TESTED PROGRAM OF WEALTH ACCUMULATION AND ASSET MANAGEMENT.

2 CAAP IS A TURNKEY ASSET MANAGEMENT SOLUTION, OFFERING MULTIPLE INVESTMENT STRATEGISTS AND ASSET ALLOCATION MODELS. INVESTMENT STRATEGIST INVESTMENT TYPE SYMMETRY PARTNERS PASSIVE/STRATEGIC LORING WARD PASSIVE/STRATEGIC THE VANGUARD GROUP PASSIVE/STRATEGIC Investment Strategist/ Offering Overview Symmetry is a broadly diversified, passively managed strategy that believes in the efficiency of the markets. They believe markets, not managers, deliver the returns to which investors are entitled. Loring Ward s Structured Investing philosophy offers a prudent, strategic approach. They believe there are five key concepts that play an essential role in the construction of a portfolio: markets work, risk and return, diversify with structure, customize portfolio, and invest long-term. Vanguard s intensive due diligence process for benchmark selection helps their exchanged traded funds (ETFs) to more accurately reflect their target markets, offer broad diversification within any market segment, and reduce costs. Portfolios Available Structured (Standard and Tax-managed) and Bond Portfolios Global Portfolio Series SA, Dimensional Fund Advisors (DFA) (Standard and Tax-managed) socially responsible investing (SRI) and Sustainability Portfolios Vanguard ETF Strategic Model Portfolios Asset Allocations Mutual fund models utilizing mostly DFA mutual funds Global SA Portfolios: SA funds sub advised by DFA Global DFA Portfolios: DFA mutual funds Vanguard ETFs Custodian Fidelity Clearing & Custody Solutions SM (FCCS) or Pershing FCCS or Pershing FCCS or Pershing Minimum Account Size $50,000 $50,000 ETF Core Portfolios: $5,000** ETF Portfolios: $20,000 Program Fee 50 bps Global SA Portfolios: 0 bps Global DFA Portfolios: 50 bps Account Service Fee $250 annually Global DFA SRI and Sustainability: $175 annually Global DDFA Standard and Tax-managed Portfolios: $250 annually Review/Rebalance Advisor Online Access updates, annual rebalance in January Wealthscape SM ; NetX360 ; ; updates, annual Client Online Access mystreetscape ; mystreetscape; NetExchange Client ; ETF Core Portfolios: 50 bps ETF Portfolios: 25 bps ETF Core Portfolios: $0 ETF Portfolios: $175 annually Fees Annual account service fee is billed per established fee schedule (quarterly/monthly) The maximum annual IAR fee including the program fee may not exceed 2.15% A one-time optional set up fee may be charged by the rep-advisor to the client upon the initial billing of the account. This fee may not exceed the lesser of $1,000 or 1% of the account s assets under management. performance reporting is available to rep-advisors at a reduced price depending on the amount of assets in CAAP. The break points are as follows; <$1.5 million AUM: $250/month (standard cost) $1.5 to $3 million AUM: $125/month Over $3 million AUM: Fee waived **$50,000 maximum for LifePoints, Target Portfolio Series, and Vanguard ETF Core Portfolios

3 MORNINGSTAR INVESTMENT SERVICES ACTIVE/STRATEGIC RUSSELL INVESTMENTS ACTIVE/STRATEGIC ROGERSCASEY ACTIVE/STRATEGIC FUND EVALUATION GROUP The strategies offered bring together well-known research of Morningstar Inc. with the professional portfolio management expertise of Morningstar Investment Services and Ibbotson Associates. Sophisticated analysis before considering an investment followed by intelligent portfolio construction and ongoing monitoring to help position each portfolio for opportunities in the market. With diversification as the focal point of the process, Russell Investments diversifies not only among investment styles and asset classes, but among leading managers as well. Russell actively monitors 8,000 manager products and fewer than 3% receive an assignment in a Russell fund. Rogerscasey offers an income-focused investment solution based on a forward-looking investment process with robust research capabilities. With decades of experience advising clients through many economic environments, they offer a thoughtful investment structure designed to provide income and access to other capital opportunities. Fund Evaluation Group offers individual investors institutional caliber portfolios that apply an innovative approach to diversification, incorporate both active and passive investment strategies, and are dynamically managed. Absolute Return, Active/Passive, Retirement Income, and ETF Portfolios Model Strategies (Standard and Tax-managed) and Lifepoints Target Portfolios Strategic Income Portfolios Managed Portfolios No transaction fee, load-waived, or no-load mutual funds and exchange traded funds Institutional-quality, multi-manager Russell mutual funds No transaction fee, load-waived, or no-load mutual funds No transaction fee, load-waived, or no-load mutual funds and ETFs FCCS or Pershing FCCS or Pershing FCCS or Pershing FCCS or Pershing $50,000 Standard and Tax-managed Portfolios: $50,000 Lifepoints Target Portfolios: $10,000 $50,000 $100,000 ETF Portfolios: 40 bps Other Portfolios: 50 bps 25 bps 25 bps 50 bps ETF portfolios: $250 annually Other Portfolios: $175 annually Standard and Tax-managed Portfolios: $175 Lifepoints Target Portfolios: $50 $175 annually $175 annually Trading The CAAP Trading Team will invest the funds into the selected model upon receipt of 90% of the expected value indicated on the investment policy statement For an In-kind Transfer, upon receipt of the funds within the CAAP account the trading team will liquidate the positions and the ticket charges will be absorbed by the rep-advisor. If the account is coming over in-kind the rep-advisor may use the one-time set up fee upon first establishing the account to offset the ticket charges.

4 INVESTMENT STRATEGIST INVESTMENT TYPE LITMAN GREGORY ASSET MANAGEMENT GREENROCK RESEARCH, INC. THE INSTITUTE FOR WEALTH MANAGEMENT Investment Strategist/ Offering Overview Litman Gregory is an independent firm that has been managing mutual fund model portfolios for more than 22 years. They believe the fat pitches that reflect their long-term valuation-based tactical asset allocation strategy differentiate them from other firms, as do their economic scenario analysis and manager due diligence. Greenrock s research process is a blend of quantitative and qualitative assessment. They aim to keep their process flexible and dynamic in order to adapt to an ever-changing investment environment. They strive to be forward looking and avoid sudden reaction to market events. Greenrock portfolios are quite unique and seldom resemble traditional portfolios. They categorize opportunities into three main categories: Global Core Equities, Fixed Income, and Alternative Investments. The Institute incorporates its Global Tactical Asset Allocation approach using SRI funds to create an SRI solution for those CAAP clients who are socially and environmentally aware. Portfolios Available Portfolio Strategies (Standard, Tax-sensitive, and ETF Portfolios) Foundation, Fixed Income, Global Core, and Alternative Investment Portfolios SRI Portfolios Asset Allocations Mutual fund models include no transaction fee, load-waived, or no-load mutual funds. ETF portfolios include ETFs and mutual funds. The portfolio will consist of individual securities, managed by third-party private managers or a portfolio of exchange traded mutual funds, drawn from the universe of domestic and international equities and fixed income securities. No transaction fee, load-waived, or no-load mutual funds Custodian FCCS or Pershing FCCS or Pershing FCCS or Pershing Minimum Account Size Standard and Tax-sensitive Portfolios: $50,000 ETF Portfolios: $20,000 $50,000 $50,000 Program Fee 25 bps 25 bps 25 bps Account Service Fee $175 annually $250 annually $175 annually Review/Rebalance updates, annual Advisor Online Access Client Online Access Fees Annual account service fee is billed per established fee schedule (quarterly/monthly) The maximum annual IAR fee including the program fee may not exceed 2.15% A one-time optional set up fee may be charged by the rep-advisor to the client upon the initial billing of the account. This fee may not exceed the lesser of $1,000 or 1% of the account s AUM. performance reporting is available to rep-advisors at a reduced price depending on the amount of assets in CAAP. The break points are as follows; <$1.5 million AUM: $250/month (standard cost) $1.5 to $3 million AUM: $125/month Over $3 million AUM: Fee waived

5 CAAP ALLOWS YOU ACCESS TO THE BENEFITS OF ACCOUNTS MANAGED BY SOME OF THE WORLD S LEADING INVESTMENT PROFESSIONALS. J.P. MORGAN ASSET MANAGEMENT J.P. Morgan Asset Management combines multiple J.P. Morgan strategies into a single investment in an effort to better diversify risk, expand return potential, and adapt to changing market conditions. HORIZON INVESTMENTS ACTIVE/OPPORTUNISTIC Horizon s Active Asset Allocation approach considers three fundamental components of the allocation process: market direction, asset allocation, and portfolio construction. WEATHERSTONE CAPITAL MANAGEMENT ACTIVE/OPPORTUNISTIC Weatherstone Capital Management believes that due to the changing nature of the markets, an investor s portfolio needs to be adjusted regularly to add investments that have above average growth potential while weeding out investments that are no longer attractive. Global Multi-Asset Tactical Model Portfolios (Standard and Tax-sensitive) Active Asset Allocation Portfolios Tactical Asset Allocation Portfolios J.P. Morgan Mutual Funds ETFs and Horizon Mutual Funds No transaction fee, load-waived, or no-load mutual funds and exchange traded funds FCCS or Pershing FCCS or Pershing FCCS or Pershing $50,000 $50,000 $25, bps 0 bps 50 bps $175 annually $175 annually $175 annually Trading The CAAP Trading Team will invest the funds into the selected model upon receipt of 90% of the expected value indicated on the investment policy statement For an In-kind Transfer, upon receipt of the funds within the CAAP account the trading team will liquidate the positions and the ticket charges will be absorbed by the rep-advisor. If the account is coming over in-kind the rep-advisor may use the one-time set up fee upon first establishing the account to offset the ticket charges.

6 HELP CLIENTS REALIZE THEIR DREAMS AND WORK TOWARDS THEIR FINANCIAL GOALS WITH A CAAP PORTFOLIO CHOSEN FOR THEIR UNIQUE NEEDS. risk management strategies Risk Assist 2 and Real Spend 3 are strategies provided by Horizon Investments. A strategy is a management feature added to enhance an investment objective to help mitigate risk or to deliver a retirement income solution. Each of these strategies is designed for a specific purpose and work in conjunction with the investment model. Risk Assist is an investment strategy designed for clients seeking to minimize catastrophic portfolio losses caused by a variety of market events. The algorithm-based risk hedging tool employs modern financial engineering that dynamically shifts portfolios out of markets as they decline and back into markets as they stabilize and rise. By continually measuring market conditions, Horizon s proprietary process shifts more risky assets to safer options fixed-income ETFs or mutual funds. Most importantly, when they believe the severe risk conditions have abated, they shift the model back to its growth objective. The fee for Risk Assist is 25 bps, account minimum is $50,000, and can be added to Horizon s Moderate, Growth, and Focused models. Real Spend can help set expectations for your clients in retirement by implementing a retirement income strategy that establishes withdrawal levels that are adjusted for inflation during the retirement years. The three major components of Real Spend are: 1) A cash reserve builds three years of cash for retirement spending, 2) The investment portion to fund future retirement spending, and 3) A risk mitigation component to help offset catastrophic market downturn. Much like establishing a Risk Profile for clients in their accumulation phase of life, Horizon believes it s equally important to have a Spend Profile for clients when they approach the distribution phase. The Profile is defined by the clients starting wealth, life expectancies, and spending requirements to maintain their lifestyles. The fee for Real Spend is 45 bps, account minimum is $150,000, and is available for use with the following Horizon models and spending rates. Horizon Moderate model with spending rates of 3% and 4% Horizon Growth model with spending rates of 5% and 6% Horizon Focused model with spending rate of 7% 2 There may be times where all investments and strategies are unfavorable and depreciate in value. Risk Assist will not prevent all losses, and accounts incorporating these strategies may not be fully invested in the underlying model, and during periods of strong market growth may underperform accounts which do not have these features. These strategies are NOT A GUARANTEE. Risk Assist and Real Spend are registered marks of Horizon Investments for its programs. 3 The Real Spend retirement income strategy is NOT A GUARANTEE against market loss. This strategy is not an insurance product with payments guaranteed. It is an investment strategy utilizing various products, fixed-income, ETFs or mutual funds, these products will fluctuate in value.

7 CAAP Manager Style Yardstick Passive to Active Symmetry Partners Loring Ward The Vanguard Group Morningstar Investment Services Russell Investments Rogerscasey Fund Evaluation Group Litman Gregory Asset Management Greenrock Research The Institute for Wealth Management J.P. Morgan Asset Management Horizon Investments Weatherstone Capital Management Passive/Strategic Active/Strategic Active/Tactical Active/Opportunistic Retirement Income Rogerscasey Morningstar Greenrock Absolute Return Morningstar Greenrock Socially Aware IWM Loring Ward Overlays Risk Assist 1 Real Spend 1 Passive Strategic These portfolios apply a passive buy and hold investment strategy along with a strategic asset allocation process in an attempt to diversify risk while capturing longer term market returns. Active Strategic These portfolios apply a somewhat active investment strategy along with a strategic asset allocation process in an attempt to diversify risk while capturing longer and potentially some shorter term market returns. Active Tactical These portfolios apply an active investment strategy along with a tactical asset allocation process that allows for more movement from the stated asset allocation in an attempt to take advantage of what may be seen as a favorable market prices or surging market sectors. The expectation is that these portfolios would generally stay in line with the stated asset allocation and would never go 100% to cash. Active Opportunistic These portfolios apply a more active investment strategy along with a more tactical asset allocation process that allows ultimate flexibility for the portfolio to attempt to take advantage of shorter term market gains. These portfolios can and will stray from any stated asset allocation and may even move 100% to cash under certain market conditions. Absolute and Alternative Strategies These portfolios aim to provide modest returns that are less sensitive to equity market movements with lower volatility and more downside protection than the broad stock market. Retirement Income Strategies These portfolios are designed to generate regular cash flows over an expected time horizon while limiting exposure to undue risk. Sustainability Global Series These portfolios employ a rigorous screening process to invest in a broad array of U.S. and international publicly-traded corporations that are committed to a greener, environmentally-sustainable future. Socially Responsible Investing Series For clients concerned about aligning their investments with their values and beliefs, these portfolios invest in thousands of U.S. and international publicly-traded corporations that meet a number of socially-responsible screens.

8 CAAP is a registered mark of Cambridge Investment Research, Inc. for its program for investment managers. Securities offered through Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC and investment advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Both are wholly-owned subsidiaries of Cambridge Investment Group, Inc. For financial professional use only V.CIR.0317