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Advisor Overview 230597

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Advisor Overview 230597

  1. 1. A Turnkey Asset Allocation Solution to help you build your practice: Streamline account management, saving time to focus on serving complex client account needs Reduce relationship risk by avoiding the pitfalls of individual fund selection Add value to your practice by leveraging the insights of the American Express Capital Markets Committee For Broker-Dealer use only. Not approved for use with clients.
  2. 2. A ready-to-use, professionally managed asset allocation tool. Introducing AXP® Portfolio Builder Series Four levels of asset allocation and diversification working for your clients AXP Portfolio Builder Series Investment Process A series of six asset allocation ■ Serves as a catalyst to have your clients consolidate all their Step 1 funds covering the entire money at American Express Financial Advisors. Disciplined asset allocation risk/return spectrum. ■ Gives you an efficient tool to help acquire high-potential The American Express Capital Markets clients each year. Committee determines what percentage of Stocks Bonds Cash each fund’s assets should be invested in ■ An appropriate choice for rollover and small business clients, three asset classes. A comprehensive permitting you more time to do ongoing financial planning. investment solution ■ Offers a ready solution for referrals every time. Step 2 designed to help you focus ■ Frees up time to deepen relationships with clients and review the insurance needs of your clients. Diversification among investment categories Domestic Equity Bond Funds Money Market on the six elements of a Determine allocation among the investment Funds Government Funds ■ Can be part of an American Express One Account. categories in each asset class. Growth Investment successful practice. Value grade ■ For equity funds, this includes diversification Blend Large cap corporate by style, market capitalization and geography. Mid cap High yield ■ For bond funds, this includes Small cap corporate Six Fund Profiles diversification by sector, maturity, Global duration and credit quality. International Funds Developed markets Emerging markets AXP Portfolio Builder ® AXP Portfolio Builder ® AXP Portfolio Builder ® Conservative Fund Moderate Conservative Fund Moderate Fund Step 3 5% Diversification among underlying funds 10% Stock Funds 20% Stock Funds 35% Stock Funds 50% American Express® Funds Large-, mid- and small-cap Large-, mid- and small-cap Large-, mid- and small-cap Senior American Express asset management 20% Growth and value 35% Growth and value 50% 50% Growth and value executives choose and monitor individual American Express® Partners Funds 70% International developed 60% International International funds for each investment category based on markets Emerging markets Emerging markets factors that include: Bond Funds 70% Bond Funds 60% Bond Funds 50% ■ Historical performance Government Government Government Investment grade corporate Investment grade corporate Investment grade corporate ■ Risk/return characteristics Multi-sector High yield corporate High yield corporate ■ Manager tenure Global Global Cash 10% Multi-sector Multi-sector Cash 5% Step 4 Periodic reallocation AXP® Portfolio Builder AXP® Portfolio Builder AXP® Portfolio Builder Fund investments reallocated to keep the Moderate Aggressive Fund Aggressive Fund Total Equity Fund funds within their target ranges. Stock Funds 65% Stock Funds 80% Stock Funds 100% 35% Large-, mid- and small-cap Growth and value 20% Large-, mid- and small-cap Growth and value 100% Large-, mid- and small-cap Growth and value Result International International International 65% Emerging markets 80% Emerging markets Emerging markets AXP Portfolio Builder Series Bond Funds 35% Bond Funds 20% Government Government Investment grade corporate High yield corporate Investment grade corporate High yield corporate AXP Portfolio Builder Series: Global Global ■ Gives you more time to focus on your most important clients Multi-sector Multi-sector ■ Complements Morningstar Advisor Workstation AXP Portfolio Builder funds will invest in the types of stock and bond funds listed above. These stock and bond funds may invest in asset classes not specifically listed ■ Delegates asset allocation to experienced investment professionals here. Pie charts represent neutral allocation for each fund. Actual asset allocation will vary over time depending on market conditions. ■ Taps the insights of David Joy, Ted Truscott, and Dan Laufenberg There are special risk considerations associated with international investing related to market, currency, economic, political and other factors. Stocks of small companies generally may be subject to abrupt or erratic price movements more so than stocks of larger companies. Some of these companies also have fewer ■ Leverages the subadviser selection process by integrating American Express Partners Funds financial resources. Higher yield corporate bond prices may fluctuate more broadly than prices of higher quality bonds. Risk of principal and income is also greater than with higher quality securities.
  3. 3. AXP Portfolio Builder Series appeals to clients in every stage of life, offering: ■ Risk-based asset allocation ■ Instant diversification with – multiple investment styles – multiple funds – multiple investment management firms via American Express Partners Funds ■ Periodic reallocation and easy performance tracking Your next steps To begin using AXP Portfolio Builder Series to grow your business 1 1. Contact your American Express Funds wholesaler and request a training session. 2 2. Identify 10 clients or prospects per week with pending investment goal and/or life stage changes. 3. 3 Send a AXP Portfolio Builder Series introductory postcard or letter to 10 clients or prospects per week and follow up with telephone calls. 4. 3 Discuss AXP Portfolio Builder Series in every sales call for IRA rollovers, small business retirement plans or education savings. For Broker-Dealer use only. Not approved for use with clients. American Express Funds American Express Financial Advisors Inc. Member NASD. 2741 AXP Financial Center American Express Company is separate from American Express Minneapolis, MN 55474 Financial Advisors Inc. and is not a broker-dealer. americanexpress.com © 2004 American Express Financial Corporation All rights reserved. 230597 A (2/04)

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