MANAGED ACCOUNT PROGRAM

Transcription

1 MANAGED ACCOUNT PROGRAM Madison, Wisconsin State Capitol MANAGED ACCOUNT PROGRAM

2 CLEAR AND SIMPLE THE MADISON MANAGED ACCOUNT PROGRAM Innovative strategies for the informed investor Successful investment management requires expertise and time to devise an investment strategy, analyze financial markets, research investments and build, monitor and rebalance your portfolio. The Madison Managed Account Program offers professional investment management tailored to your individual needs. SOPHISTICATED PORTFOLIO MANAGEMENT Professional, institutional-level portfolio management Multiple investment strategies Best-in-class investments Continuous monitoring of your account A rebalancing strategy to maintain a consistent allocation Asset allocation Successful investment experiences are based upon picking the right combination of investments with an appropriate mix of asset classes. By spreading investments across asset classes, we strive to reduce your downside exposure to any one area and ensure your participation in the upside potential of other areas. Risk management Our focus on risk management within your portfolio is paramount to the success of your overall investment experience. Managing risk is intended to serve a dual purpose of increasing the long-term returns and mitigating downside volatility. Page 15

3 OUR INVESTMENT PROCESS Determine Asset Allocation Research Selection Optimization Select Investments Focused on quality and consistency Construct Portfolio Implement strategy Monitor Ongoing monitoring of asset classes and investments Based on careful analysis of many market factors, we strategically weigh each asset class. At times, we use a contrarian approach, where we identify out-of-favor asset classes where values and prices are not excessive and therefore, opportunities for gains may exist. We employ a comprehensive screening process to choose investments for your portfolio. Each fund must meet the following criteria: Sound objectives and strategies Consistent and superior risk-adjusted performance Stable, quality characteristics Your own personal goals, objectives and risk tolerance will be of primary importance when constructing your portfolio. We monitor each investment in your portfolio to make sure it remains in line with expectations. Page 2

4 5 Rebalance Portfolio Review continuously Rebalancing your portfolio may become necessary when there is a significant shift in the weights of asset classes due to market movements. Madison s goal is to build portfolios so that investors will participate in favorable markets and be protected during market declines compared with investors in portfolios holding more speculative and volatile securities. There is no assurance that this goal will be realized. YOUR CHOICE OF INVESTMENT STRATEGIES Each offers portfolios for a range of investment needs including income, capital preservation and various levels of growth. Alpha Advantage ETF (Exchange-Traded Funds) Tax-Sensitive Emphasizes active fund managers that strive to outperform their benchmark index with higher return and lower risk. Uses primarily exchangetraded funds (ETFs) designed to closely track the performance of a market index. (Models also include some active funds.) Uses a variety of municipal bond funds and ETFs to build a tax-efficient portfolio. Page 3

5 GETTING STARTED YOUR PORTFOLIO CHOICES Because client needs differ, the Madison Managed Account Program offers several different investment portfolios to meet various needs. Capital preservation portfolios Moderate portfolios Growth portfolios Income Advantage Suitable for bond investors seeking income and preservation of capital. Capital Preservation Suitable for conservative investors seeking income and limited growth potential. Conservative Suitable for investors seeking income over growth with a modest appetite for risk. Moderate Suitable for investors seeking growth and income with a moderate level of risk. Moderate Growth Suitable for investors seeking growth over income but still interested in dampening volatility. Growth Suitable for investors capable of assuming greater risk to achieve potentially higher return; seeking capital appreciation and minimal income. Aggressive Suitable for investors in the accumulation mode with longer-term time horizons and able to accept greater risk and volatility. Page 4

6 MANAGING YOUR PORTFOLIO Madison may adjust the asset allocation based on our view of the capital markets and global economic backdrop. Your investment professional may suggest adjusting your strategy if your situation changes, such as your long-term goals, time horizon or attitude toward risk. Online access and reporting You and your financial adviser receive statements and performance reports on a regular basis. Up-to-date performance and investment information is available online at any time. Your portfolio, investment strategy and allocation are actively and continually monitored for you. Simple all-inclusive fee You pay no sales charges or loads on any of the investments within your portfolio. A pre-determined fee schedule covers all services, including investment counseling, portfolio management, transaction fees and ongoing account administration. This fee schedule is based on the value of your account. Along with your financial adviser s personalized investment advice and the managed account professionals at Madison Asset Management, LLC, your investment team is surrounded by the depth of resources of the Madison family of companies that together manage several billion dollars in assets assuring you of our dedication to your investment success. Page 5

7 MANAGED ACCOUNT PROGRAM Each portfolio is subject to the risks and expenses of the underlying funds in direct proportion to the allocation of assets among the underlying funds. The MAP Program is sponsored by Madison Asset Management, LLC. Madison Asset Management, LLC also offers the program s strategies through other program sponsors. Refer to the applicable disclosure brochure for more details. Non-deposit investment products are not federally insured, involve investment risk, may lose value and are not obligations of, or guaranteed by, any financial institution. MAP