Advisers

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Advisers
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Ten Investment Truths
I N V E S T M E N T
nvesting is a process, not an event o investment
process, as good as it may be, is
perfect olatility / risk of your portfolio
should never exceed your comfort level very
investment proposal that sounds too good to be
true, is ound investment portfolios are
liquid-there is no substitute for liquidity o
achieve your goals, you dont have to hit
homeruns, just dont strikeout ake at least a 5
year commitment to your investment plan
motional and tax-driven investment decisions
are rarely good decisions ever confuse
investment information with investment
knowledge he path to investment success is paved
with proven investment management principles and
risk management techniques
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Investor Behavior

• Behavioral Studies Suggest Investors Do Not
  Always
• Understand risk / reward tradeoffs
• Remain focused on long-term goals
• Make rational investment decisions

2002 Nobel Prize in Economics to Daniel Kahneman
for His Work in Behavioral Finance
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Institutional Investment Process
Increases the probability of achieving your
investment goals, regardless of what happens in
the stock market, the economy, or the course of
world events
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Institutional Investment Process
Determine your investment objectives and
tolerance for risk
Report the results
Set your asset allocation policy
Build your portfolio using proven investment
management principles and risk management
techniques
Continuous portfolio management
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Determine Your Investment Objectives And
Tolerance For Risk

• Personal profile that drives investment of your
  assets
• Your goals and objectives
• Your time frame
• Your tolerance for volatility / risk

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Set Your Asset Allocation Policy
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Build Your Portfolio Using Proven Investment
Management Principles Risk Management
Techniques

• Our Portfolio Management Partner
• SEI INVESTMENTS
• Financially strong public company founded in
  1968
• Global institutional asset management company
• 150 billion in assets under management

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Build Your Portfolio Using Proven Investment
Management Principles Risk Management
Techniques
Efficient, broadly diversified, style neutral
portfolios Modern Portfolio Theory 1990 Nobel
Prize In Economics To Harry Markowitz
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Efficient Portfolios
100 Stocks
Portfolios above curve are unattainable
80 Stocks 20 Bonds
60 Stocks 40 Bonds
Portfolios below curve are inefficient greater
risk than necessary to achieve expected return
Expected Return
40 Stocks 60 Bonds
100 Bonds
Volatility / Risk
Structured to Maximize the Expected Return for
the Level of Volatility / Risk You Are Willing to
Accept
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Active Tax-Management To Enhance Your
Portfolios After-Tax Return

• Fundamental portfolio engineering principles
  persist
• Focus on the after-tax return of the asset class
• Defer capital gains as long as possible
• Implement active tax-management techniques to
  minimize taxes

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Continuous Portfolio Management

• Quarterly portfolio rebalancing
• Maintains your volatility / risk mandate
• Risk management techniques
• Eliminate unnecessary and unrewarded risks
• Supervision of the specialist money managers
• Philosophy, process, people, and performance

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Report The Results

• Comprehensive, understandable reporting package
• Monthly activity report
• Quarterly performance report
• Annual tax report

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Institutional Investment Process
A Disciplined, Scientific Process
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The Institutional Investment Process increases
the probability of achieving your investment
goals, regardless of what happens in the stock
market, the economy, or the course of world
events
Provides greater control
Brings you peace of mind
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Fee Schedule
Annual Account
Assets Management Fee On the
first 250,000 1.20 On the next
250,000 1.10 On the next
250,000 0.80 On the next
250,000 0.70 On the next
250,000 0.40 On the next
250,000 0.30 On all amounts over
1,500,000 0.25 Minimum account
150,000. Management fees are billed quarterly,
in arrears. The fee is based on the account
value on the last business day of the calendar
quarter and is deducted from the investment
management account. The deduction of the
management fee is reported on the monthly
statement of account activity. ADMINISTRATIVE
FEES SEI Private Trust Company provides custody
and reporting services for all portfolios.
Accounts with a market value less than 250,000
are charged an annual administrative fee of 200.
There is no administrative fee on accounts with a
market value greater than 250,000.