LIFETIME WEALTH PORTFOLIOS

Transcription

1 LIFETIME WEALTH PORTFOLIOS LIFETIME WEALTH PORTFOLIOS Investment Philosophy BRINKER CAPITAL

2 LIFETIME WEALTH PORTFOLIOS SM SUB-ADVISERS ARE PRE- SCREENED INVESTMENT EXPERTS PROVIDING MARKET INSIGHT, ANALYSIS TOOLS, AND ENGAGED PORTFOLIO MANAGEMENT. YOUR SUB-ADVISER CONSTRUCTS, MONITORS, AND MANAGES YOUR PORTFOLIO ACCORDING TO YOUR INVESTMENT STRATEGY. WHEN SELECTING YOUR LIFETIME WEALTH PORTFOLIOS SM SUB-ADVISER, CAREFULLY CONSIDER EACH SUB-ADVISER S UNIQUE INVESTMENT PHILOSOPHY. YOUR SUB-ADVISER S APPROACH TO CONSTRUCTING AND MANAGING A STRATEGY THAT ALIGNS WITH YOUR FINANCIAL OBJECTIVES IS KEY TO THE SUCCESS OF YOUR INVESTMENT PORTFOLIO. 01

3 This summary of Brinker Capital s investment philosophy provides a snapshot of their approach to constructing and managing your investment portfolio. Here we answer the following questions: Who Is Brinker Capital? What s 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 Brinker Capital? Founded in 1987 by Charles Widger, Brinker Capital is an investment management firm that provides customized investment products and services for financial advisers and their clients. These include high net worth individuals, employers, institutions, endowments, and foundations. Over the past 20 years, Brinker Capital has earned the trust of thousands of leading financial advisers enabling them in turn to provide asset management services to investors across the globe. Four Core Principles As an industry leader in investment advisory services, the foundation of Brinker Capital s approach is based on four core principles. These principles help them to stay focused and flexible so that every decision they make and every strategy they implement serves the investor Diversification Brinker Capital s portfolios span six asset classes, including both traditional strategies domestic equity, international equity, and fixed income and alternatives, including absolute return, real assets, and private equity. They ensure individual investors have access to products and strategies usually only available to large, institutional investors. Innovation Brinker Capital continually looks for ways to innovate, drawing on their extensive experience to find better investment strategies for the long term. This combination of curiosity and flexibility means that clients have a ready source for new ideas and smart solutions. Independent Analysis At Brinker Capital, they form their own independent perspective on everything they recommend. When they are putting together a portfolio, they start by analyzing strategy options based on expected returns, historic returns, and market volatility. Armed with in-depth research, they can make informed, strategic decisions about how to allocate assets. Hands-On Management At Brinker Capital, they carefully evaluate every fund manager and strategy they recommend to make sure they meet their standards for performance and integrity. They also continue to monitor and reallocate portfolios to take advantage of market opportunities. LIFETIME WEALTH PORTFOLIOS INVESTMENT PHILOSOPHY // BRINKER CAPITAL 02

4 Principles: What s Their Investment Approach? The hallmark of Brinker Capital s approach to investment advisory services is discipline and rigor. Leveraging decades of expertise, Brinker Capital has developed highly specialized and strategic portfolio construction processes that have been time-tested. By analyzing an investor s time horizon and risk/ return objectives, Brinker Capital is able to achieve tailored investment solutions that meet clients needs. They construct your portfolio from both traditional and non-traditional asset classes that provide downside protection and superior risk-adjusted returns, both of which are critical for long-term investment success. This endowment style approach of traditional and non-traditional asset classes may include value and growth stocks, large, mid and small capitalization stocks, international equities, fixed income, real estate, commodities, absolute return strategies, and private equities. Construction: How Will They Build My Portfolio? Brinker Capital uses a five-step process to select investments and construct your portfolio. They utilize an ongoing and disciplined investment approach in building a diversified portfolio that seeks to weather all types of market environments and, over time, has the potential to deliver superior risk-adjusted returns. 5. Monitor and Review 4. Construct Your Portfolio 1. Define Your Goals and Objectives 2. Establish a Strategic Asset Allocation 3. Select Fund Managers 03 LIFETIME WEALTH PORTFOLIOS INVESTMENT PHILOSOPHY // BRINKER CAPITAL

5 Management: What Will My Team Look Like? Brinker Capital s approach to fund manager selection begins with the principle that all managers must have a clearly stated investment discipline. This clarity of vision allows fund managers to focus on successful, day-today investment decisions that allow them to seek returns above a stated benchmark. Asset classes and investment disciplines are combined to build optimally diversified portfolios that are aligned with your investment objectives, your risk tolerance, and the fund managers selected. Additionally, rigorous standards are used to narrow the universe of fund managers best suited to invest your assets. QUALITATIVE/QUANTITATIVE Manager Tenure Long-term Performance Up/down Capture Expense Ratios Universe Comparisons Assets Under Management Risk-adjusted Performance REVIEW AND SELECTION Committee Evaluation Determine Execution Strategy BRINKER CAPITAL S APPROACH TO MANAGER SELECTION MANAGER INTERVIEWS People Process Philosophy Performance Passion Manager Questionnaire Manager Scorecard CORRELATION ANALYSIS Analyze Portfolio Impact with Potential Fund Combinations Review Correlation of Existing Candidates and Existing Holdings Access to investments in Lifetime Wealth Portfolios SM is based on the investment universe negotiated by Eagle Strategies LLC and their clearing and custody provider. Diversification does not assure a profit or protect against market loss. LIFETIME WEALTH PORTFOLIOS INVESTMENT PHILOSOPHY // BRINKER CAPITAL 04

6 Monitoring: How Will They Stay on Track? Brinker Capital continuously analyzes investment managers for the soundness of their investment process, adherence to the stated investment style, and ability to deliver performance results. They follow defined processes to ensure you have properly diversified portfolios that seek to enhance returns as well as manage risk. Rebalancing and Reallocating Brinker Capital seeks to enhance performance and improve your investment experience through active rebalancing, tax management, and ongoing manager review. Rebalancing is also important when risk and return expectations of asset classes change. When your personal circumstances change, it may be necessary to review your investment strategy with your financial adviser to determine if it is still in line with your goals and objectives, and adjust if appropriate. Capital adjusts your portfolio to keep it aligned with your overall asset allocation. 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 SM 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 protection needs and to maximize your portfolio s value over time. Get Started: What Are My Next Steps? Lifetime Wealth Portfolios SM is a proprietary managed account platform offered exclusively through Eagle Strategies LLC. Please contact your financial adviser for more information and to learn how Brinker Capital can help you achieve your financial goals. Keeping It in Line As a Lifetime Wealth Portfolios SM sub-adviser, Brinker Capital considers the value of your life insurance policy or income annuity in the development of your portfolio. As your insurance values change, Brinker 05 LIFETIME WEALTH PORTFOLIOS INVESTMENT PHILOSOPHY // BRINKER CAPITAL

7 DEFINITIONS AND EXPLANATIONS ASSET CLASS An asset class defines a group of investments that are similar in nature. The three main asset classes are stocks, bonds, and cash or cash equivalents. ASSET ALLOCATION Asset allocation is a strategy that attempts to balance risk and reward by dividing an investor s total assets among several asset classes that will help them achieve their goals for their stated risk profile. ACTIVE MANAGEMENT This approach is an active, hands-on investment strategy in which investment managers build portfolios with individual securities that they believe will outperform their peers and they make adjustments based on changing market conditions. PORTFOLIO OPTIMIZATION A methodology used to construct portfolios that combine expert management, strategic allocation, and total economic worth to achieve the greatest possible return for a given risk profile. RISK-ADJUSTED RETURNS An investment concept that builds your portfolio in an attempt to achieve the greatest return for a specified risk tolerance. RISK TOLERANCE Risk tolerance refers to the degree of uncertainty an investor can handle regarding a negative change in the market. Risk tolerance is a combination of an investor s individual preference regarding risk as well as their age, income, and financial goals. PASSIVE MANAGEMENT Passive managers believe that it is difficult to consistently outperform benchmarks through individual investment selection and market timing. Instead, passively managed portfolios seek to emulate the holdings and returns of predetermined indices. Investors should refer to the investment management agreement as well as the Eagle Strategies Disclosure Brochure for complete information on the respective roles and responsibilities of Brinker Capital and Eagle Strategies LLC. Brinker Capital and Eagle Strategies LLC are registered investment advisers with the Securities and Exchange Commission and are not affiliated companies. 06

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