Wealth Management


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  • Read text of slide. Our focus is on meeting and overcoming the increasingly complex challenges that face long-term investors. Our expertise encompasses both taxable and tax-deferred investments. We help clients plan for long-term investment goals such as: retirement education of children or grandchildren buying a business or second home estate planning.
  • Our clients have made the decision that they want to spend their time on other priorities: family career volunteer work smelling the roses They prefer to leave the management of their investments to experts.
  • Read through statistics on slide. Most investors simply can’t afford to spend enough time to research the universe of available investment options.
  • Lack of coordination creates a situation where decisions are made in a partial information vacuum. It creates the risk that different parts of your portfolio can wind up either working against one another, or doing redundant work and leaving other work undone. One of the biggest dangers of an uncoordinated portfolio is that you wind up over-diversified and paying above-average costs for average returns. Another danger in an uncoordinated portfolio is that you could actually be underdiversified and, therefore, carrying more risk than you are aware of, or willing to have.
  • Our approach to investing is that we try to control what we can predict. Virtually all long-term experience in the markets shows that it is impossible to consistently predict performance. However, we can predict and exert at least some control over the other two major factors in the investment equation: taxes fees
  • Investors are gaining awareness of the impact of taxes on long-term investment returns, and the best indication is the financial press. This slide shows a few representative headlines or quotes taken from leading financial publications or news services. An article in USA Today ( dated November 6, 1998) talked about tax-managed funds as a way to “Gain with less pain.” An article posted on the Bloomberg.com and Women’s Wire news service (dated November 12, 1999) suggested: “Whenever you sell a winner, make sure to unload a loser before the tax year is over.” In January 1999 Smart Investing , Kiplinger’s Personal Finance magazine, asked readers: “Looking for tax-efficient funds?” It then advised: “Don’t bother” because it said most mutual funds have some tax-inefficiencies. In the March 17, 1997 issue, Fortune wrote that: “There’s a lot of advice going around about the need to minimize mutual fund taxes. It’s time to set the record straight”. You probably have seen articles and press advice similar to these. Each time such an article appears, investor awareness of tax impact grows. NOTE TO PRESENTER: THIS SLIDE IS OPTIONAL. USE IF TIME AND NEED PERMITS.
  • The 2003 Tax Relief bill enables you to reduce the amount of taxes you pay on gains in your portfolio by: more than 1/2 if you are in the highest or second-highest tax brackets almost 1/2 if you’re in the third-highest bracket. If you can control the timing of capital gains so that they are eligible for the long-term capital gains rates, you: enhance portfolio performance significantly by reducing the tax bite increase the base on which your future performance will compound.
  • While the loss of 3% per year to taxes is devastating to the return of each individual year, the cumulative effect is even worse. This chart shows the long-term impact that taxes can have on wealth accumulation. Assume an initial investment of $10,000 which grows at a pre-tax rate of 10 % over 20 years. At the end of the period, the investment would be worth $67,275. An investment strategy that was 80% tax-efficient (ie, generated an after-tax return of 8%) would be worth $46,575 at the end of the same period. An investment strategy that was 85% tax-efficient (ie, generated an after-tax return of 8.5%) would be worth $51,083. An investment strategy that was 90% tax-efficient (ie, generated an after-tax return of 9%) would be worth $55,820. You can see the importance of tax-efficiency. The 10% increase in tax-efficiency from 80% to 90% generated an additional $9,245 in after-tax earnings.
  • Your portfolio manager also can pursue tax-efficient strategies within a Private Asset Management Account to enhance your after-tax returns. Let’s define four of them. Tax-aware trading means that the manager makes buying and selling decisions by applying a “tax screen” customized to your needs. For example, the manager might decide to take a realized gain when it will create the least tax impact. The manager also may seek to match gains and losses so they offset each other. Loss harvesting means that any losing positions in the account may be sold, to lock in the tax loss to offset gains at a future date. The money then may be reinvested in similar positions; for example, in the same industry and similar types of companies, so the overall portfolio strategy stays intact. Tax-lot accounting means the manager can sell the highest cost shares that generate favorable tax consequences. Suppose you have accumulated shares of IBM over many years, and now want to sell them. If you don’t specify a “tax lot,” the IRS determines which shares you sold, and they may be those with the most adverse tax consequence - those with the lowest cost basis and highest gain. On the other hand, tax-lot accounting lets you specify shares with the highest cost basis to lessen the tax impact.
  • When it comes to fees, the problem is that most investors simply don’t know how to calculate their investment costs. With most investment vehicles, just finding the data you need to calculate costs accurately isn’t easy.
  • Historically, when the supply of a product increases, prices come down. This is an effect of what we call the law of supply and demand. Historically, when people buy large amounts of something, they tend to get a price break. This demonstrates what we call economy of scale. However, at the end of an unprecedented period of growth, both in the number of funds available to investors, and in the amount of assets invested, the average cost of mutual fund investing has actually risen. John Bogle, founder of The Vanguard Group mutual fund complex, calls the costs associated with mutual fund investing “excessively high” (May, 1998, speaking to the Institute for Private Investors).
  • Read the three sentences on the slide. These three points, and our dedication to implementing them on behalf of our clients, set us apart from most financial advisors.
  • It is widely accepted today by both academics and investment professionals that asset allocation is responsible for over 90% of variations in portfolio performance. This view is evidenced by the Brinson Studies published in the Financial Analysts Journal in 1986 and again in 1991. The difference between PROFESSIONAL investment management and AMATEUR investment management is that professionals dedicate significant time, effort and resources in determining the proper asset mix in a portfolio . . . the blue slice of the pie, while amateurs primarily focus on individual security selection or mutual fund selection which is represented by the much less significant, red slice of the pie.
  • Diversifying your investments across a broad range of asset classes such as stocks and bonds and by different investing styles and markets has proven to be a solid leveling strategy. (CLICK FOR CHART)
  • We believe that most often investors’ experience disappointing returns because they have an emotional, undisciplined approach to investing. As Robert Arnott notes in his book entitled, Active Asset Allocation , “In investing, what is comfortable is rarely profitable.” In an effort to reduce or eliminate Emotional decisions, I think it would be helpful to review the Cycle of Emotion and how it relates to the investment cycle. When the investment cycle is at its low point, investor sentiment is filled with Doubt and Suspicion regarding the future return potential of the market. As the market rises, doubt and suspicion change to Caution. As the market continues to rise, investors become more Confident. This confidence soon turns to Enthusiasm and investors become quite comfortable buying into the market. Upon buying into the market, almost every investor says to himself, “You watch, now that I’m an investor the market will go down.” Have you ever thought this yourself soon after making an investment? As the market continues to advance Greed inevitably sets in. Lots of buying takes place at this level, when investors are extremely enthusiastic about the market. In the next phase of the cycle, the buying momentum has been exhausted and the sellers begin to step in. A new set of emotions begins to prevail. First, there is Indifference, followed by Denial and Concern. As the market continues to decline due to an overabundance of sellers, Fear and Panic set in next and the investor sells his position. The investor, driven by the cycle of emotion has experienced a loss in his investment, as he bought high and sold low. Again, this is a common experience for many investors and demonstrates how an Emotional response to volatility and risk can lead to disappointing performance.
  • I’m going to ask you a question and that is: What is the most important service that you provide to your clients? What do you think is THE most important thing you provide to them? Is it a selection of products? Is it good quality returns? Yes? A: Counseling. Counseling. How many of you would agree with it that it’s counseling or advise or something along those lines? I think we have a slide that gives evidence of that. Again, this is where I get up on my soapbox and talk a little bit. This is a slide that, source is Dalbar. I don’t know how many of you are familiar with Dalbar, but they are a consulting group that looks at a number of different things, primarily around the service and support issues within the financial services industry. And a number of years ago, I think they started doing this in 1996, maybe it was earlier than that, but I think it was 1996 when they first started doing this information. Initially, they were updating it once every two years. Now, they’ve started to update it once a year. So, you’ll see the one that we have here actually covers a 20-year period, beginning in 1984 to the end of 2003. So, what it shows is the returns on stocks as represented by the S&P 500, return on bonds, obviously a pretty good 20-year for bonds and the return they received. Look at that relative to the long-term average. It also shows the returns of the average equity investor. And the way they come up with this, the way Dalbar comes up with this, they look at cash flows into and out of equity mutual funds. They don’t calculate the returns of the fund, they calculate the return of the investor while in that fund. So, what it says to me is these are the returns that are available. Stocks 12.89 percent. Equity investor 3.51. How many of you have seen this slide or seen this information in the past? To me, this defines what our role is as a financial advisor, and that is, we need to get clients closer to what is available to them and stop them from doing the things that hurt them. What is it that makes them get 3.51 percent per year? Bad timing. That’s one of my favorites. They always say it’s timing that does it. I say it’s not timing, but bad timing that does it. I mean if you were a good timer, you’d be way above on those numbers. The key here is… And first of all, stupidity is one of the answers. I have actually seen a couple of intelligent investors in that 3.51 percent range. And I have to say, I’ve actually been using this information, like I said, for a number of years. I discovered… I started using it… I don’t remember if it was ’97 and it was the ’96 study or it was ’98. But it was somewhere in that time period. And I can tell you that my returns are not near 13 percent per year. Personally, I haven’t done what they’ve done up there. And I think the key is we got to the fear and greed issues, the emotions, the bad timing. The market drives us to do what…thank you very much, that’s the end of the presentation for today…the market drives us to do those thing emotionally which are going to hurt us. I often talk about human nature. Human nature rewards success and penalizes failures, right? Investing nature is the exact opposite of human nature. And that is, as long as you have product that is not fraudulent, you want to reward failure and penalize success. Right? Forced rebalancing. Anything along those lines drives you to go against what your emotions would tell you to do. And it is for those reasons that this happens, that the investor gets 3.51 percent versus 12.98. Now, where do we focus most of our time in this industry? I think we focus it here. We look for mutual funds. We look for money managers. We don’t look for products that get us 12.98 but maybe 13.10. We keep on trying to get investments that are available to us to be better, when in reality what we need to do is just get the client to get more of what’s available to them. To me, that’s the most important role, that’s the counseling role that you guys said. That’s what it is. It’s about taking the client and getting them not to get in the way of themselves. And that actually is not an easy job at all. But there is a benefit to that. The fact that it is not an easy job means it is not commoditizable. It means it is much more difficult to get priced out of the market when you are providing this type of service. To get them closer, it gives you the opportunity to provide greater value to them which also gives you the opportunity to not get priced out of the market. Now, do your clients understand that’s the value you provide to them? Would anybody debate this issue? If you’re sitting out there, test my credibility. Am I wrong on this? Does anybody think I’m wrong? Do you think it’s top five in terms of importance? Top three? Maybe number one? Okay.
  • This chart demonstrates why it is so important. This slide is based on a simple 50/50, stock/bond allocation at the start of 1996. As you can see, by the end of 1999, the portfolio shifted to 68% stocks and 32% bonds due to the strong stock market. This unbalanced portfolio was exposed to greater volatility when the stock market declined in 2000. Another example of the importance of rebalancing is shown here. A 50/50 stock/bond portfolio at the start of 2000 would have shifted to 32% stocks and 68% bonds by the end of 2002 due to a stronger bond market. This unbalanced portfolio missed out on some of the returns of the stock market rebound in 2003. So, it’s those THREE STEPS – ALLOCATE, DIVERSIFY, and REBALANCE — that constitute our ADR strategy. Now let me show you how it works with three investors who each take a different approach to diversification. It’s our “Tale of three investors” sales idea, which you can use with the public. (CLICK FOR NEXT SLIDE.)
  • Note to presenter: If you decide to use chart as a hand out, you can get rid of page 18. Our first investor chases performance by always investing $10,000 at the end of the previous year into the best performing market segment of that year. Here’s how he fared after 20 years. (CLICK.) Our second investor thinks she’s a little more clever, so she goes looking for the rebound opportunity by investing $10,000 in the previous year’s worst-performing market segment. And here is her return. (CLICK.) Our third investor implements an ADR strategy. He diversifies his $10,000 by investing equally in six different market segments: large-cap value, small/mid-cap, international, large-cap blend, large-cap growth, and bonds. He then rebalances at the end of every quarter to respond to market action and to put his portfolio back in alignment. And here’s the final value of our third investor’s portfolio after 20 years. (CLICK.) Now past performance is no guarantee of future results, as we all know, but the historical evidence is compelling. For purposes of this comparison, we’ve divided the overall market into the six indices listed on the next slide. (CLICK)
  • Once you establish a relationship with the investment advisor of your choice, the consulting process starts with an assessment of where you are today financially versus where you hope to arrive in the future and any reservations or conditions you wish to place along the way. You would be asked to answer some questions based on your specific goals and objectives, i.e. risk tolerance and time horizon. Then a diversified investment strategy would be developed for you based on a professional assessment of the information you provided. Not a one-time product pitch but a long-term strategy for your investments over time. This strategy is presented to you in writing and is called an investment policy statement. It describes your recommended asset allocation approach and other aspects of how your portfolio will be managed and lays out how long-term progress will be measured. Next, your investment advisor will do the shopping for you – he or she will select professional money managers on your behalf to implement the strategy outlined in the statement of investment policy. Your advisor monitors progress toward your goals and reports back to you on an ongoing basis. He or she would consult with you to make any needed adjustments along the way. The advisor’s primary function is to act as a consultant to provide advice and guidance. The specific investment products used to meet your long-term needs are of secondary concern. This brings us to the key difference – what you are primarily purchasing in this type of relationship is not product. While you would certainly aquire investment products along the way, what you pay for are the ongoing services of a person responsible to professionally and systematically monitor and maintain your portfolio over time. Therefore you pay no commission. If you have a brokerage account, or you own mutual funds or other types of investments today, then chances are, you have paid commission. You paid one time for a one-time service. In most cases, that may have been a one-time product recommendation. There is absolutely nothing wrong with that, particularly if you don’t meet any of the criteria we have discussed. However, in this arrangement, you pay a percentage of your assets under the management of the investment advisor on an ongoing basis, generally between 1 and 2%. As we’ve discussed, there are good reasons for both types of arrangements. The next slide will explain some of the benefits.
  • With the STRATEGIC ASSET ALLOCATION approach, we first decide which asset classes to include in the portfolio. Next we analyze the historical performance of each asset class for: Return Risk Covariance With the help of sophisticated OPTIMIZATION software, we next decide upon the long-term weights for each of the asset classes. We then blend the asset classes to create desired risk and return characteristics to meet your risk/return profile.
  • TACTICAL asset allocation management involves the following: As with the STRATEGIC asset allocation approach, the first step is to establish the long-term target asset mix for each risk/return profile. Next, PROPRIETARY MARKET RESEARCH is gathered from investment analysts . . . Next, the risk/return projections for each asset class are compared to determine where the most attractive investment opportunities currently exist . . . Then, the asset mix is adjusted to reflect these opinions consistent with the desired risk/return parameters for each profile. In our investment management services we provide both the STRATEGIC and TACTICAL asset allocation approaches. The recommended approach will depend upon you individual circumstances and preferences.
  • We believe that the combined credentials of our Portfolio Strategists is impressive… Collectively they currently have $570 billion in assets under management, and advise on another $1.1 trillion of combined assets. Their research staffs and Investment Policy Committees are made up of 45 PHD’s, 108 Chartered Financial Analysts, 2300 research analysts and they have 85 Locations Worldwide. Their investment minimums typically range from between $500,000 and $25 million.
  • And their institutional client list is equally impressive. I’m sure that there are many companies and organizations on this list with which you are familiar.
  • Wealth Management

    1. 1. Who We Are David White & Associates We are financial advisors who specialize in portfolio design for taxable and tax-deferred investments.
    2. 2. <ul><ul><li>Not enough time </li></ul></ul><ul><ul><li>Not enough knowledge </li></ul></ul><ul><ul><li>Rear-view mirror data </li></ul></ul>Clients Come to Us for Guidance Investors are uncomfortable selecting investments themselves.
    3. 3. <ul><ul><li>In 1986, there were 1,940 mutual funds. </li></ul></ul><ul><ul><li>By the end of 1997, there were over 6,300. </li></ul></ul><ul><ul><li>Today there are more than 8,000. </li></ul></ul><ul><ul><li>There are an additional 20,000 options for privately managed accounts. </li></ul></ul>Too many investment choices create confusion. Clients Come to Us for Clarity Source: Lockwood Investment advisory services
    4. 4. <ul><ul><li>No coordination between taxable and tax-deferred investments </li></ul></ul><ul><ul><li>Multiple advisors = Uncoordinated advice </li></ul></ul>Clients Come to Us for Strategy Most investors don’t have a coherent plan for their total portfolio.
    5. 5. <ul><li>Current Tax rates? Yes </li></ul><ul><li>Fees? Yes </li></ul>Pursuing Portfolio Growth <ul><li>Performance? No </li></ul>What can we predict?
    6. 6. Investor Awareness of Tax Impact is GROWING “ Whenever you sell a winner, make sure to unload a loser before the tax year is over. ” “ There’s a lot of advice going around about the need to minimize mutual fund taxes. It’s time to set the record straight. ” “ Looking for tax-efficient funds? ” “ Tax-managed funds; Gain with less pain. ” These logos are trademarks of the respective news organizations. Sources: Smart Investing , January 1999 by Steven T. Goldberg; Fortune 3/17/1997 by Maggie Topkis; Bloomberg.com and Women’s Wire current article dated November 12, 1999 not by-lined; USA Today article dated November 6, 1998 by John Waggoner.
    7. 7. <ul><li>The reduction of the long-term capital gains rate to 15% </li></ul>The Opportunity We help clients take advantage of the 2003 tax law changes, specifically:
    8. 8. The Impact of Taxes on Investment Results The Tax Bite on Wealth Creation Source: T. Rowe Price Associates. Assumes 10% average annual pre-tax return and liquidation of account after 20 years, 20% tax rate for capital gains, 30% for income. Rates are assumed for illustrative purposes only and are not indicative of any particular investment. After-Tax Growth of $10,000 over 20 years at Various Tax-Efficiency Rates $67,275 $46,575 $51,083 $55,820 $70,000 $60,000 $0 $50,000 $40,000 $30,000 $20,000 $10,000 $80,000 Pre-tax return of 10% After-tax return at 80% tax-efficiency After-tax return at 85% tax-efficiency After-tax return at 90% tax-efficiency
    9. 9. Strategies to Enhance After-Tax Returns Offset Gains and Losses Loss Harvesting Tax-lot Accounting Tax-aware Trading Private Asset Management
    10. 10. <ul><li>“ Fewer than one American in five knows how much his/her funds charge.” </li></ul><ul><li>The Economist, January 24, 1998 </li></ul><ul><li>Source: Comptroller of the Currency </li></ul>The Problem
    11. 11. The Challenge Fees are high and rising! 1992 Average stock fund fees 1.46% 1997 Average stock fund fees 1.70% 2002 Average stock fund fees 1.75% Source: Morningstar, Inc.: 12/31/02 Note: Fees include mutual fund expense ratio and .30 basis points clearing/custody fees.
    12. 12. <ul><li>We construct portfolios with an emphasis on </li></ul><ul><li>what is predictable : fees and taxes . </li></ul><ul><li>We coordinate a strategy for taxable and non- </li></ul><ul><li>taxable pools of assets under one investment plan. </li></ul><ul><li>We have access to one of the most comprehensive </li></ul><ul><li>universe of investment vehicles in the marketplace. </li></ul>What Makes Us Different?
    13. 13. Importance Of Asset Allocation According to a respected academic study, asset allocation is responsible for over 90% of variations in portfolio performance. Brinson, Hood & Beebower, Financial Analysts Journal , 1986 Brinson, Singer & Beebower, Financial Analysts Journal , 1991 91.5% Asset Allocation 4.6% Securities Selection 1.8% Timing 2.1% Other Factors
    14. 14. MFS Investment Management ® Strategy
    15. 15. * Represents price appreciation only. Past performance is no guarantee of future results. Investors cannot invest directly in an index. Source: Merriman Capital Management, Inc., data through 1929-1999. Meeder Financial, data prior to 1929 and 2000 to current. 12.0 12.2 17.7 17.4 13.7 18.4 14.4 18.5 15.4 18 yrs Secular Bull 1982-1999 -- -- -- -- -- -- -- -- (1.1) 16 yrs Secular Bear 1906-1921 -- -- -- -- -- -- -- -- 20.1 7 yrs Secular Bull 1922-1928 9.5 2.5 2.1 4.5 5.1 Long-Term Gov’t Bonds 9.5 2.9 2.4 6.1 5.6 Long-Term Corporate Bonds (9.0) 5.1 14.1 (2.3) 9.7 Large Cap Growth (0.1) 11.0 20.5 (4.9) 12.5 Large Cap Value 4.4 10.5 15.2 (0.6) 10.7 Small Cap Growth 12.8 14.8 22.3 (4.7) 14.3 Small Cap Value 20.3 12.2 20.7 (2.4) 12.7 Microcap (Decile 9-10) (4.5) 6.0 15.7 (2.4) 10.6 S&P 500 (2.7) (0.6) 9.4 (7.4) 5.3 Dow* 4+ yrs 16 yrs 24 yrs 13 yrs 71 yrs Length in Years Secular Bear Secular Bear Secular Bull Secular Bear Total Period Type Of Market 2000- May 2004 1966-1981 1942-1965 1929-1941 1929-1999
    16. 16. <ul><li>“ In investing, what is comfortable is rarely profitable.” </li></ul><ul><li>Robert Arnott </li></ul><ul><li>Active Asset Allocation </li></ul>Emotion All Too Often Guides Investment Decisions SOURCE: Journal Of Financial Planning Loss Enthusiasm Confidence Caution Doubt and Suspicion Indifference Denial Concern Fear Panic Despair Greed CYCLE OF EMOTION Sell Buy
    17. 17. Investor vs. Investment Returns Annualized Returns 1984 through 2003 Source: Dalbar, Stocks = S&P 500, Bonds = Long Term Government Bond Index, Investor = Avg. Equity Investor, Inflation = CPI
    18. 18. Benefit of Active Management during Secular Bear Market (1965-1982) 1965 1982 969 Dow Jones Industrial Average* 1047 $100,000** Average Fund Manager $577,265 Average Fund Increase: +477% or 10.2% / Year Source: Bloomberg, Morningstar, as of 6/30/02. Past performance is no guarantee of future results. Investors cannot invest directly in an index.
    19. 19. Benefit of Active Management during Secular Bear Market (1965-1982) Source: Bloomberg, Morningstar, as of 6/30/02. Past performance is no guarantee of future results. Investors cannot invest directly in an index.
    20. 20. The importance of rebalancing December 31, 1995 Hypothetical results are for illustrative purposes only and are not intended to represent the future performance of any MFS portfolio. Source: Lipper Inc. Stocks are represented by the S&P 500 Stock Index, a commonly used measure of the broad U.S. stock market. Bonds are represented by the Lehman Brothers Aggregate Bond Index, a measure of the U.S. bond market. It is not possible to invest directly in an index. Past performance is no guarantee of future results. December 31, 1999 December 31, 1999 December 31, 2002
    21. 21. Time-tested strategies ADR has beaten most strategies Investor One Investor Two Investor Three (Hypothetical $10,000 annual investment from 12/31/83 to 12/31/03) MFS Investment Management ® Chasing Performance: Invests in best market segment at the end of every year. Hoping for a rebound: Invests in the worst market segment at the end of every year. Allocating: Rebalances each market segment at the end of every quarter to align portfolio Source: Lipper Inc. Hypothetical results are for illustrative purposes only and are not intended to represent the future performance of any MFS portfolio. For purposes of this comparison, we’ve divided the overall market into the six indices listed on the next slide. These indices represent small- to large-cap, growth to value, international, and fixed-income investing styles. It is not possible to invest directly in an index. Past performance is no guarantee of future results. Strategy
    22. 22. The Planning Process Assess Your Needs and Establish Goals and Objectives Select Professional Money Manager(s) to Implement the Strategy Investment Advisor Develop an Investment Policy Statement and Asset Allocation Strategy Monitor Manager(s) on an Ongoing Basis
    23. 23. <ul><li>The strategic approach utilizes Modern Portfolio Theory to develop a long-term target asset mix. </li></ul><ul><li>The target asset mix remains relatively consistent throughout the investment period. </li></ul><ul><li>Periodic rebalancing to the target asset mix controls risk and promotes disciplined selling of winners and buying of losers. </li></ul>Strategic Asset Allocation STRATEGIC
    24. 24. <ul><li>Establish long-term target asset mix by applying the principals of Modern Portfolio Theory </li></ul><ul><li>Gather proprietary capital market research from investment analysts </li></ul><ul><li>Determine where the most attractive opportunities currently exist </li></ul><ul><li>Adjust asset mix accordingly, within permissible ranges for each Risk/Return profile </li></ul>Tactical Asset Allocation TACTICAL
    25. 25. Tactical Asset Allocation decisions Past performance is no guarantee of future results. Investors cannot invest directly in an index.
    26. 26. Private Money management <ul><li>Retirement Projections </li></ul><ul><ul><li>Withdrawal strategies </li></ul></ul><ul><li>Asset allocation </li></ul><ul><li>Tax Strategies </li></ul><ul><li>Consolidated Statements </li></ul><ul><ul><li>Measure performance to index </li></ul></ul><ul><li>Fees-Retail vs. Wholesale </li></ul><ul><ul><li>Institutional fees less than retail </li></ul></ul><ul><ul><li>Small investor can now purchase these plans </li></ul></ul><ul><li>Diversification of elite managers </li></ul><ul><ul><li>Ability to trade without fees to top managers </li></ul></ul>
    27. 27. <ul><li>3.1 Trillion of combined managed assets as of Nov. 2004 </li></ul><ul><li>3.9 million customer accounts maintained </li></ul><ul><li>409 billion in customer assets </li></ul><ul><li>Source: National Financial Website </li></ul>National Financial-Fidelity :
    28. 28. <ul><li>$1.05 Trillion Combined Assets Under Management </li></ul><ul><li>$710 Billion Combined Assets Under Advisement </li></ul><ul><li>Over 2000 Research Analysts and Investment Professionals </li></ul><ul><li>88 Locations Worldwide </li></ul>AssetMark Combined Credentials :
    29. 29. <ul><li>Alltel Corporation </li></ul><ul><li>Avon Products </li></ul><ul><li>Bayer Corporation </li></ul><ul><li>Bell Atlantic Corp. </li></ul><ul><li>Black & Decker </li></ul><ul><li>California Public Employee Retirement System (CalPERS) </li></ul><ul><li>Carnegie Mellon University </li></ul><ul><li>Commonwealth of Mass. </li></ul><ul><li>Dole Food Company </li></ul><ul><li>Eastman Kodak </li></ul><ul><li>Goodyear Tire & Rubber </li></ul><ul><li>Shell Oil </li></ul><ul><li>Sony Corporation </li></ul><ul><li>The Ministers and Missionaries Benefit Board of the American Baptist Churches </li></ul><ul><li>University of California </li></ul><ul><li>University of Pittsburgh </li></ul><ul><li>Westinghouse Electric </li></ul><ul><li>World Bank </li></ul>AssetMark Institutional Client List This is a representative list of institutional clients of the Portfolio Strategists who have granted permission to use their names in marketing materials. Clients on this list have been selected to represent the broad range of institutional clients advised by the Portfolio Strategists and have not been selected based on portfolio performance. Inclusion on this list does not constitute an endorsement by any of these clients.
    30. 30. <ul><li>Owned by the oldest bank in the U.S.-Bank of New York </li></ul><ul><ul><li>One of the worlds leading custodians with over $8.3 trillion in assets </li></ul></ul><ul><li>Over $7.7 billion in client assets </li></ul><ul><li>160 Professionals </li></ul><ul><li>33 Locations Worldwide </li></ul>Lockwood-Bank of New York-Pershing Credentials :
    31. 31. Ameritas Investment Corp. AIC Securities and advisory services offered by registered representatives and investment advisor associates of Ameritas Investment Corp. 800-335-9858. AIC is not affiliated with David White & Associates.