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TRANSCRIPT
Makingdisciplineddecisions
INVESTMENT PHILOSOPHY
Brinker Capital isn’t like other investment management fi rms.
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For more than 20 years, we’ve pioneered smarter investment strategies,innovative products, and new technology, all to provide excellent support to advisors.
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Our approach to excellence in investment management is based on four core principles. They help us stay focused and fl exible, so that every decision we make and every strategy we implement serves the investor.
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Diversifi cation
Innovation
Independent Analysis
Hands-On Management
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Diversifi cation
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Our portfolios span six asset classes, including both traditional strategies—domestic equity, international equity, and fi xed income—and alternatives, including absolute return, real assets, and private equity.
We also offer a wide range of portfolios to serve the different needs of different investors, from the most conservative to the most aggressive strategy, from mutual funds to absolute return vehicles.
This broad diversifi cation translates into broader opportunities. It means investors have access to products and strategies that aren’t generally available to individuals. It means they may see reduced risk and increased returns over the long term. It means that both their money and their confi dence are well placed.
There is more than one way to be successful in investing. In fact, there are at least six.
The Foundation: Six Asset Classes
INTERNATIONAL EQUITY
DOMESTIC EQUITY
FIXED INCOME
ABSOLUTE RETURN
REAL ASSETS
PRIVATE EQUITY
DOMESTIC EQUITY
INTERNATIONAL EQUITY
DOMESTIC EQUITY
FIXED INCOME
ABSOLUTE RETURN
REAL ASSETS
INTERNATIONAL EQUITY
DOMESTIC EQUITY
FIXED INCOME
ABSOLUTE RETURN
INTERNATIONAL EQUITY
DOMESTIC EQUITY
FIXED INCOME
INTERNATIONAL EQUITY
DOMESTIC EQUITY
LESS DIVERSIFICATION MORE DIVERSIFICATION 7
We help protect and build wealth through a broadly diversifi ed approach, using a strategy typically employed by endowments seeking to grow their investments over the long term.
Innovation
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Introduced managed accounts as part of a disciplined asset allocation process—the fi rst independent fi rm in the country to do so (1992).—Created a no-load, multiple-family mutual fund asset allocation program (1995).—Developed a personalized advisor and client services workstation for easy account access (2000).—Restructured a mutual fund program to lower fees and broaden diversifi cation (2004).
Introduced the Brinker Capital Unifi ed Managed Account, which allows a household to integrate a variety of investment products and services into a single account for easier management (2006).—Launched an online investment management proposal system (2007).—Formulated the dollar value averaging program, which enables investors to put more money into their portfolios when the market is undervalued and less when it’s overvalued, thus maximizing their input (2009).
Introduced the Personalized Distribution Strategy, which helps investors meet current spending needs without compromising long-term investment plans (2009).—Created a mobile application that allows investors to review their accounts anywhere, anytime (2010).
Because the portfolio investors have today won’t be the same as the portfolio they have in fi ve years, we continually look for ways to innovate.
We believe that the best way to inspire trust and confi dence is to reinforce the support we provide. We look beyond typical style boxes, the usual investment classes, and popular fund managers for better strategies. An intensive, team-based approach enables us to generate ideas, drawing on our long experience and newest insights.
We incorporate our best ideas into portfolios, so that they refl ect our most up-to-date approaches for the short and long term. All of this supplies you with a ready source for intelligent, useful solutions.
Following trends can get you lost. So we lead.
Through the years, we’ve stayed ahead of the times.
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IndependentAnalysis
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When we’re putting together a portfolio, we thoroughly research every asset manager and strategy under consideration to make sure they meet our standards.We start by analyzing strategy options based on expected returns, historic returns, and market volatility. Armed with our in-depth research, we can make informed, strategic decisions about how to allocate assets.
Then we turn our attention to asset management fi rms. With a careful, step-by-step process, we investigate the consistency of their performance, the shrewdness of their investment process, the quality of their associates, and the soundness of their business.
That way, you have a thoughtful, independent point of view on how to invest, and the proof to back it up.
To have confi dence, you have to have choices.
Qualitative and quantitative
screening of:
Correlation analysis to
evaluate:
Manager interviews
to assess:
Review and selection to determine:
• Manager tenure • Expense ratios• Assets under management• Long-term performance
• Universe comparisons• Risk-adjusted performance• Downside protection
• Portfolio team• Process• Philosophy• Performance• Passion
• Which managers to work with• Execution strategy
• Portfolio impact with potential fund combinations
• Correlation between existing candidates and existing holdings
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We off er products that draw on our investment management expertise—and that provide access to the asset management expertise of many of the world’s most respected fi rms.
Hands-on Management
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With more than 20 years of investment management experience, Brinker Capital has a wealth of expertise to draw on in day-to-day money management.
Because market conditions can change in the blink of an eye, we take an active approach to investing. That may mean capitalizing on ineffi ciencies, adapting investing styles, or implementing new strategies to take advantage of new market opportunities.
To ensure funds and fund managers are meeting the investor’s goals, we perform regular analyses on their performance. When appropriate, we’ll reallocate portfolios to target ineffi ciencies or eliminate fund managers.
Likewise, an investor’s needs, time horizon, risk tolerance, or tax situation may shift. We move quickly to ensure that their portfolio refl ects these changes.
By staying active and diligent, we can help investors pursue their goals without missing potential opportunities.
Building a portfolio is just the beginning. So we stay with you, every step of the way.
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Knowing the pluses and minuses. Weighing the opportunities and risks.
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That’s the Brinker Capital discipline.
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Investing in any investment vehicle carries risk, including the possible loss of principal, and there can be no assurance that any investment strategy will provide positive performance over a period of time. The asset classes and/or investment strategies described in this publication may not be suitable for all investors.
Investment decisions should be made based on the investor’s specifi c fi nancial needs and objectives, goals, time horizon, tax liability, and risk tolerance. When investing in managed accounts and wrap accounts, there may be additional fees and expenses added onto the fees of the underlying investment products.
For more information about Brinker Capital and our investment philosophy, including information on fees, you may request a copy of our Form ADV Part II from a Brinker Capital Client Services representative at 800.333.4573 or at [email protected]. Brinker Capital does not render tax, accounting, or legal advice.
brinkercapital.com 1055 Westlakes Drive Suite 250Berwyn, PA 19312
800.333.4573
Brinker Capital, Inc., a Registered Investment Advisor. BRO_INVPHIL
HistoryandOverview
Experience. Reliability. Access. Insight. Intelligence. Excellence.
Brinker Capital, a leading investment management fi rm with over 120 employees, is headquartered in Berwyn, Pennsylvania, a suburb of Philadelphia. The company was founded by Charles Widger in 1987 based on the beliefs that individuals have diverse investment goals and that everyone should have access to the same investment services that are available to large institutions, foundations, and endowments. Because of this, Brinker Capital has seen substantial growth since its inception and has evolved into an investment management fi rm that provides competitive risk-adjusted returns and related investment management services to both investors and advisors.
Our portfolios span six asset classes, including both traditional strategies—domestic equity, international equity, and fi xed income—and alternatives, including absolute return, real assets, and private equity.
This broad diversifi cation translates into broader opportunities. It means investors have access to products and strategies that aren’t generally available to individuals. It means they may see reduced risk and increased returns over the long term. It means that both their money and their confi dence are well placed.
Our approach to excellence in investment management is based on four core principles. They help us stay focused and fl exible, so that every decision we make and every strategy we implement serves the investor.
Diversifi cationWe invest in a full range of asset classes, offering traditional strategies (domestic equity, international equity, and fi xed income) and alternatives (including absolute return, real assets, and private equity). We ensure our clients have access to products and strategies usually only available to large, institutional investors.
InnovationWe continually look for ways to innovate, drawing on our extensive experience to fi nd better investment strategies for the long term. This combination of curiosity and fl exibility means that you have a ready source for new ideas and smart solutions.
Independent AnalysisAt Brinker Capital, we form our own independent perspective on everything we recommend. When we’re putting together a portfolio, we start by analyzing strategy options based on expected returns, historic returns, and market volatility. Armed with our in-depth research, we can make informed, strategic decisions about how to allocate assets.
Hands-On ManagementWe carefully evaluate every asset manager and strategy we recommend to make sure they meet our standards for performance and integrity. We also continue to monitor and reallocate portfolios to take advantage of market opportunities.
Investing in any investment vehicle carries risk, including the possible loss of principal, and there can be no assurance that any investment strategy will provide positive performance over a period of time. The asset classes and/or investment strategies described in this publication may not be suitable for all investors. Investment decisions should be made based on the investor’s specifi c fi nancial needs and objectives, goals, time horizon, tax liability, and risk tolerance. When investing in managed accounts and wrap accounts, there may be additional fees and expenses added onto the fees of the underlying investment products. For more information about Brinker Capital and our investment philosophy, including information on fees, you may request a copy of our Form ADV Part 2A from a Brinker Capital Client Services representative at 800.333.4573 or at [email protected]. Brinker Capital does not render tax, accounting, or legal advice.
Seeing up close and far away. The next step and the horizon ahead. That’s the Brinker Capital perspective.
brinkercapital.com 1055 Westlakes Drive / Suite 250 / Berwyn, PA 19312800.333.4573
Brinker Capital, Inc., a Registered Investment Advisor HISTORY_OVERVIEW
Through the years, we’ve stayed ahead of the times.
Introduced managed accounts as part of a disciplined asset allocation process—the fi rst independent fi rm in the country to do so (1992).
Created a no-load, multiple-family mutual fund asset allocation program (1995).
Launched an online investment management proposal system (2000).
Developed a personalized advisor and client services workstation for easy account access (2000).
Restructured a mutual fund program to lower fees and broaden diversifi cation (2004).
Introduced the Brinker Capital Unifi ed Managed Account, which allows a household to integrate a variety of investment products and services into a single account for easier management (2006).
Formulated the Dollar Value Averaging program, which enables investors to put more money into their portfolios when the market is undervalued and less when it’s overvalued, thus maximizing their input (2009).
Introduced the Personalized Distribution Strategy, which helps investors meet current spending needs without compromising long-term investment plans (2009).
Launched one of the investment industry’s fi rst absolute return strategies in a separately managed account format (2009).
Created a mobile application that allows investors to review their accounts anywhere, anytime (2010).
Adopted Global Investment Performance Standards (GIPS)® for the calculation and presentation of investment performance (2010).
Brinker Capital’s Asset Allocation App becomes available in the Apple Store and the Android Market (2012).
William H. Miller, Chief Investment Offi cer26 Years of Industry ExperienceB.A. in Economics, Trinity College
Amy Magnotta, CFASenior Investment Manager12 Years of Industry ExperienceB.S., Lehigh University
Stuart P. Quint III, CFASenior Investment Manager and International Strategist26 Years of Industry ExperienceB.S. and B.A., University of Pennsylvania
Jeff Raupp, CFASenior Investment Manager17 Years of Industry ExperienceB.S., University of Delaware M.B.A., Villanova University
Andrew Rosenberger, CFASenior Investment Manager7 Years of Industry ExperienceB.S., The Pennsylvania State University
Thomas K.R. Wilson, CFASenior Investment Manager and Managing Director of Institutional Investments19 Years of Industry ExperienceB.S., James Madison University
PortfolioManagementTeam
Brinker Capital, Inc. is an investment management fi rm, registered with the Securities and Exchange Commission under the Investment Advisors Act of 1940, which provides customized investment products and services for fi nancial advisors and their clients. Brinker Capital, Inc. is wholly owned by Brinker Capital Holdings, Inc. To receive a complete list and description of Brinker Capital’s composites and/or a presentation that adheres to the GIPS standards, contact a member of Brinker Capital’s Client Service team at 1.800.333.4573 or [email protected]. Brinker Capital, Inc. claims compliance with the Global Investment Performance Standards (GIPS®).
brinkercapital.com 1055 Westlakes Drive / Suite 250 / Berwyn, PA 19312800.333.4573
Brinker Capital, Inc., a Registered Investment Advisor HISTORY_OVERVIEW
Mutual Fund Investment Program:Destinations
Brinker Capital’s Destinations mutual fund program offers a variety of asset allocation strategies, each targeting a specifi c investment objective. Whatever an investor’s goals may be, we have a strategy to help reach them.
Our strategies offer different balances of risk and reward, depending on an investor’s risk tolerance and time horizon. They’re all designed to offer consistent, competitive performance while seeking to achieve better risk-adjusted returns over the long term.
DEFENSIVE(Qualifi ed and Taxable)
For the investor looking for low volatility with limited growth potential. Typically, it is a predominantly fi xed income portfolio with a small equity component and exposure to alternative asset classes.
CONSERVATIVE (Qualifi ed and Taxable)
For the investor focused on preserving wealth through low volatility and some growth potential. Typically, we build a conservative program with a predominance of fi xed income assets, as well as an equity component and exposure to alternative asset classes.
MODERATELY CONSERVATIVE (Qualifi ed and Taxable)
For the investor seeking long-term capital growth with a moderate level of volatility. This strategy usually includes a greater allocation to fi xed income than to equity, but also includes a substantial allocation to equity and exposure to alternative asset classes.
MODERATE (Qualifi ed and Taxable)
For the investor looking for long-term growth of capital, who can tolerate a moderate level of volatility. Most often this program emphasizes equity, but also contains a signifi cant allocation to fi xed income and exposure to alternative asset classes.
AGGRESSIVE(Qualifi ed and Taxable)
For the investor looking to achieve long-term capital appreciation without much concern for risk.
AGGRESSIVE EQUITY(Qualifi ed and Taxable)
For the investor who wants to maximize long-term capital appreciation and is willing to accept a high level of volatility.
MODERATELY AGGRESSIVE(Qualifi ed and Taxable)
For the investor who prioritizes long-term capital appreciation and is willing to take on a higher level of volatility than a balanced portfolio. Typically, we place the most emphasis on equity; however, we also make a meaningful allocation to fi xed income and alternative asset classes.
7% DOMESTIC EQUITY80% FIXED INCOME1% REAL ASSETS11% ABSOLUTE RETURN
14% DOMESTIC EQUITY6% INTERNATIONAL EQUITY67% FIXED INCOME3% REAL ASSETS10% ABSOLUTE RETURN
24% DOMESTIC EQUITY8% INTERNATIONAL EQUITY57% FIXED INCOME3% REAL ASSETS9% ABSOLUTE RETURN
38% DOMESTIC EQUITY13% INTERNATIONAL EQUITY37% FIXED INCOME4% REAL ASSETS7% ABSOLUTE RETURN1% PRIVATE EQUITY
46% DOMESTIC EQUITY16% INTERNATIONAL EQUITY27% FIXED INCOME4% REAL ASSETS6% ABSOLUTE RETURN1% PRIVATE EQUITY
54% DOMESTIC EQUITY19% INTERNATIONAL EQUITY17% FIXED INCOME4% REAL ASSETS5% ABSOLUTE RETURN1% PRIVATE EQUITY
69% DOMESTIC EQUITY24% INTERNATIONAL EQUITY1% FIXED INCOME3% REAL ASSETS1% ABSOLUTE RETURN1% PRIVATE EQUITY
brinkercapital.com 1055 Westlakes Drive / Suite 250 / Berwyn, PA 19312800.333.4573
Brinker Capital, Inc., a Registered Investment Advisor. DEST_OVERVIEW
The Asset Allocation charts shown refl ect Brinker Capital Inc’s target asset allocation policy as of March 31, 2013 for taxable investments. Strategies for tax-exempt investments may vary slightly. Target weightings are subject to change at any time. Actual allocations will change over time. Allocations may not add to 100%, due to rounding of asset allocation percentages.
Investing in any investment vehicle carries risk, including the possible loss of principal, and there can be no assurance that any investment strategy will provide positive performance over a period of time. The asset classes and/or investment strategies described in this publication may not be suitable for all investors.
Investment decisions should be made based on the investor’s specifi c fi nancial needs and objectives, goals, time horizon, tax liability, and risk tolerance. When investing in managed accounts and wrap accounts, there may be additional fees and expenses added onto the fees of the underlying investment products.
For more information about Brinker Capital and our investment philosophy, including information on fees, you may request a copy of our Form ADV Part 2A from a Brinker Capital Client Services representative at 800.333.4573 or at [email protected]. Brinker Capital does not render tax, accounting, or legal advice.
We also offer specialized strategies within Destinations.
Destinations features
CONSERVATIVE GOVERNMENT FOCUSED
For the investor who wants to minimize risk but does not require absolute stability of principal. This portfolio seeks to achieve more attractive returns over time than U.S. government money markets. We create this portfolio to perform well relative to other asset allocations when markets are risk-averse. However, because some holdings are longer in duration, the portfolio can be more susceptible to interest rate changes. Likewise, this portfolio can have negative returns in a rising rate environment or when markets are leaving U.S. treasuries for riskier assets. It is not a principal-protected product, nor a cash or money market substitute.
BALANCED INCOME STRATEGY(Qualifi ed and Taxable)
For the investor seeking to generate a high level of current income with a moderate level of principal volatility. Brinker Capital designed this portfolio to produce income and balance infl ation by investing approximately 60% in dividend-paying equities and 40% in fi xed income securities. It also includes a substantial allocation to equities and potentially some exposure to alternative asset classes. We use a value-style equity orientation in an effort to decrease overall volatility.
PERSONALIZED DISTRIBUTION STRATEGYFor the investor who wants to generate income for current spending needs. This customized solution involves a withdrawal strategy that delivers a “paycheck” for a specifi c period. It also manages reserves to provide for long-term needs through thoughtful cash replenishment based on technical analysis.
DOLLAR VALUE AVERAGINGFor the investor willing to take on risk over the long-term to meet goals. Brinker Capital created this strategy on the time-tested principle of “buy low, sell high.” When the market declines, more of the portfolio will be invested to maximize purchasing power. When the market rises in value, less of the portfolio will be invested in the market and more will remain in cash. We systematically increase market exposure from the start to a predetermined end date; however, investors can also discontinue this systematic plan and invest fully in the market any time they choose.
SPEND RATE
35
25
15
30
20
10
5
3%
4%
5%
6%7%
8% 9%10%
YEAR
S
SPEN
D RA
TE
PERIODIC INVESTMENT
PART
IALL
Y IN
VEST
ED
FULL
YIN
VEST
ED
VALU
E —
% IN
VEST
ED
Source: Brinker Capital
51% NOMINAL U.S. TREASURIES6% INFLATION-PROTECTED U.S. TREASURIES20% AGENCY MORTGAGE- BACKED SECURITIES8% GOVERNMENT MONEY MARKET 14% NON-TREASURY INVESTMENTS1% CASH
35% DOMESTIC EQUITY12% INTERNATIONAL EQUITY38% FIXED INCOME10% REAL ASSETS5% ABSOLUTE RETURN
PersonalPortfoliosMade Simple
Investing can be complicated. But it doesn’t have to be. With Brinker Capital’s Unifi ed Managed Account Platform, managing money is even simpler.
This program includes a highly diversifi ed, long-term investment strategy, designed specifi cally for an investor’s goals, time horizon, and tax situation. A comprehensive portfolio can incorporate managed accounts, mutual funds, and ETFs, bringing them together for easier oversight. Likewise, a unifi ed managed account platform provides consolidated performance reporting, ongoing tax management, and risk and return management.
We also provide personalized tax transition services. By coordinating the taxable actions of asset managers, we can manage the tax, risk, and allocation consequences of any changes made to a portfolio.
Because each investor has different objectives, our Personal Portfolios delivered through the UMA platform offer multiple asset allocation strategies. Each strategy has been thoughtfully constructed and seeks to deliver consistent, competitive performance within its stated risk and return parameters.
CONSERVATIVE(Qualifi ed and Taxable)
For the investor focused on preserving wealth through low volatility and some growth potential.
MODERATELY CONSERVATIVE (Qualifi ed and Taxable)
For the investor seeking long-term capital growth with a moderate level of volatility.
MODERATE(Qualifi ed and Taxable)
For the investor looking for long-term growth of capital who can tolerate a moderate level of volatility.
AGGRESSIVE(Qualifi ed and Taxable)
For the investor looking to achieve long-term capital appreciation without much concern for risk.
AGGRESSIVE EQUITYWITH ALTERNATIVES(Qualifi ed and Taxable)
For the investor who wants to complement a separate fi xed income portfolio while maximizing long-term capital appreciation.
AGGRESSIVE EQUITY(Qualifi ed and Taxable)
For the investor who wants to maximize long-term capital appreciation and is willing to accept a high level of volatility.
17% DOMESTIC EQUITY3% INTERNATIONAL EQUITY59% FIXED INCOME4% REAL ASSETS 15% ABSOLUTE RETURN2% PRIVATE EQUITY
31% DOMESTIC EQUITY8% INTERNATIONAL EQUITY38% FIXED INCOME4% REAL ASSETS 16% ABSOLUTE RETURN2% PRIVATE EQUITY
49% DOMESTIC EQUITY9% INTERNATIONAL EQUITY19% FIXED INCOME4% REAL ASSETS 16% ABSOLUTE RETURN2% PRIVATE EQUITY
60% DOMESTIC EQUITY12% INTERNATIONAL EQUITY7% FIXED INCOME4% REAL ASSETS 14% ABSOLUTE RETURN2% PRIVATE EQUITY
66% DOMESTIC EQUITY23% INTERNATIONAL EQUITY1% FIXED INCOME4% REAL ASSETS 1% ABSOLUTE RETURN3% PRIVATE EQUITY
57% DOMESTIC EQUITY20% INTERNATIONAL EQUITY2% FIXED INCOME4% REAL ASSETS 13% ABSOLUTE RETURN2% PRIVATE EQUITY
brinkercapital.com 1055 Westlakes Drive / Suite 250 / Berwyn, PA 19312800.333.4573
Brinker Capital, Inc., a Registered Investment Advisor. UMA_OVERVIEW
The Asset Allocation charts shown refl ect Brinker Capital Inc’s target asset allocation policy as of January 7, 2013, for taxable investments. Strategies for tax-exempt investments may vary slightly. Target weightings are subject to change at any time. Actual allocations will change over time. Allocation may not add to 100% due to rounding of asset allocation percentages.
Investing in any investment vehicle carries risk, including the possible loss of principal, and there can be no assurance that any investment strategy will provide
positive performance over a period of time. The asset classes and/or investment strategies described in this publication may not be suitable for all investors.
Investment decisions should be made based on the investor’s specifi c fi nancial needs and objectives, goals, time horizon, tax liability, and risk tolerance. When investing in managed accounts and wrap accounts, there may be additional fees and expenses added onto the fees of the underlying investment products.
For more information about Brinker Capital and our investment philosophy, including information on fees, you may request a copy of our Form ADV Part 2A from a Brinker Capital Client Services representative at 800.333.4573 or at [email protected]. Brinker Capital does not render tax, accounting, or legal advice.
UMA TAX TRANSITION FEATURE
The Personal Portfolios tax transition feature provides a thoughtful way to create, implement and manage a plan customized to meet your unique needs. These strategies are designed with the understanding that every client has a different tax situation and unique investment objectives. We take a hands-on approach to developing a transition strategy unique to each investor; working with you and your advisor we will review your risk tolerance, objectives and tax management priorities. Our investment professionals evaluate each case on an individual basis and will implement an effective strategy best suited to meet your needs. Depending on your objectives, the timing of the transition and the asset allocation will vary.
While often overlooked, tax management and the related transition planning are critical components of transferring your assets to a diversifi ed portfolio that meets your investment goals and objectives. The Personal Portfolios with the tax transition strategy combines tax management with a robust asset allocation that can incorporate managed accounts, mutual funds and ETFs in one fully diversifi ed portfolio. With a focus on tax-effi cient management and diversifi cation, these portfolios have the ability to manage the tax, risk and allocation consequences of transactions by coordinating the taxable actions of the managers
VALUE ADDED SERVICES
Personal Portfolios
ACCOUNT STRUCTURE
PRODUCT INVESTMENT VEHICLES
Single Registration Single Account Multiple Products
Single 1099
SMAs
SophisticatedTax
Managment
Mutual Funds
BroadlyDiversifi ed
AssetAllocation
ETFs
TacticalPortfolio
Management
DirectResearch
Focus onRisk
Management
CrystalIndividual
Stocks
Core AssetManager:SeparatelyManagedAccounts(SMA)
With Brinker Capital’s Core Asset Manager, investors can directly own individual securities managed by investment managers that have been subjected to our rigorous screening. Direct ownership allows an investor to restrict certain securities or “social” investing classes from a portfolio, and take advantage of potential tax effi ciencies.
Based on specifi c investment objectives, Core Asset Manager offers a tailored investment strategy including stocks, bonds, cash, and other individual securities. Where appropriate, we also utilize mutual funds, ETFs, and limited partnerships.
To us, security and growth are not mutually exclusive. In addition to giving investors greater control over their investments, Core Asset Manager aims to protect the absolute value of core assets, while providing a competitive rate of return.
Investors don’t have the same goals. They shouldn’t have the same portfolios either.
Investing in any investment vehicle carries risk, including the possible loss of principal, and there can be no assurance that any investment strategy will provide positive performance over a period of time. The asset classes and/or investment strategies described in this publication may not be suitable for all investors.
Investment decisions should be made based on the investor’s specifi c fi nancial needs and objectives, goals, time horizon, tax liability, and risk tolerance. When
investing in managed accounts and wrap accounts, there may be additional fees and expenses added onto the fees of the underlying investment products.
The Asset Allocation charts shown above refl ect Brinker Capital Inc.’s target asset allocation policy as of January 31, 2012, Actual allocations will change over time.
For more information about Brinker Capital and our investment philosophy, including information on fees, you may request a copy of our Form ADV Part 2A from a Brinker Capital Client Services representative at 800.333.4573 or at [email protected]. Brinker Capital does not render tax, accounting, or legal advice.
brinkercapital.com 1055 Westlakes Drive / Suite 250 / Berwyn, PA 19312800.333.4573
Brinker Capital, Inc., a Registered Investment Advisor. CAM_OVERVIEW
Smart Diversifi cation
DIVERSIFIEDCONCENTRATEDGROWTHVALUEFACTOR BASEDMARKET CAPITALIZATIONTECHNICALOPPORTUNISTIC
DIVERSIFIEDCONCENTRATEDGROWTHVALUEFACTOR BASEDMARKET CAPITALIZATIONTECHNICALOPPORTUNISTICEMERGING MARKETS
MUNICIPALCROSSOVERHEDGEDINTERNATIONALEMERGINGHIGH YIELDDISTRESSED
ALTERNATIVES
DOMESTIC EQUITY
INTERNATIONAL EQUITY
FIXED INCOME
PRIVATE EQUITY
COMMODITIESINFLATION-PROTECTED SECURITIESPRIVATE REAL ESTATEMASTER LIMITED PARTNERSHIPSREITs
GLOBAL MACROMERGER ARBITRAGEMANAGED FUTURESLONG/SHORTMARKET NEUTRALEVENT DRIVENRELATIVE VALUE
PUBLICPRIVATELEVERAGED BUYOUTVENTURE CAPITALSECONDARY
ABSOLUTE RETURN
REAL ASSETS
Investors best suited for the Core Asset Manager Program are:• Individuals, families, and trusts• Endowments• Foundations• Defi ned Benefi t Plans
A customized portfolio that includes active and passive investment strategies implemented by separate account managers, ETFs, mutual funds, limited partnerships and/or individual holdings.
CrystalStrategy I
Crystal Strategy I is an absolute return portfolio offered within a separately managed account structure that seeks to capture returns in both good and bad markets.
Utilizing both tactical and strategic process, Crystal Strategy I seeks to outpace infl ation by 3-5% over a full market cycle.
CS1_INTRO
1055 Westlakes Drive / Suite 250 / Berwyn, PA 19312800.333.4573Brinker Capital, Inc., a Registered Investment Advisor.
As an absolute return strategy, Crystal Strategy I uses a diversifi ed approach, active and passive strategies and strong risk management to reach a targeted return over a specifi c market cycle.
MANAGED VOLATILITY
Doesn’t Chase an Index – Crystal Strategy I is designed to reach a targeted return over a 3-year market cycle. This time-tested investment philosophy has been used successfully by large academic endowments and foundations.
SIX ASSET CLASS METHODOLOGY
Broad Asset Class Diversifi cation – Crystal Strategy I is broadly diversifi ed across six major asset classes and has an average of 40 different strategies at work at any given time. The portfolio uses multi-sector strategies that are transparent and offer daily liquidity. In addition to researching and adding industry-leading managers, Brinker employs a highly focused stock selection approach.
ACTIVE RISK MANAGEMENT
Hedge Market Risk – Crystal Strategy I may employ the following hedging methodologies to reduce overall portfolio risk: short positions in the market, reallocations to more stable asset classes such as fi xed income or absolute return, or placing an emphasis on specifi c strategies with less market risk.
Seeks to achieve “equity-like” capital appreciation with an emphasis on absolute (positive) returns and low correlation to the S&P 500 Index by diversifying heavily in both traditional and non-traditional asset classes.
For Financial Advisor use only in a one-on-one presentation.
Drawdowns, or the reduction a portfolio might experience when the market retraces, are an inevitable part of any investment. However, because Crystal Strategy I can go long or short, it has limited the drawdowns more effectively than the S&P 500 Index.
5.00%
0.00%
-5.00%
-10.00%
-15.00%
-20.00%
-25.00%
-30.00%1/6/09 - 3/9/09
6/12/09 - 7/10/09
10/19/09 - 10/30/09
4/23/10 - 7/2/10
8/9/10 - 8/26/10
1/19/11 - 2/8/11
4/29/11 - 10/3/11
10/28/11 - 11/25/11
4/2/12 - 6/4/12
9/10/12 - 11/12/12
S&P 500 Max DrawdownCrystal Strategy I Returns
-17.12%
-27.50%
-3.92%
-7.08%
-4.46%
-5.60%
-4.59%
-16.00%
0.13%
-7.10%
-4.40%
-8.10%
-5.31%
-19.38%
-4.93%
-9.80%
-1.24%
-10.00%
-0.68%
-7.60%
Crystal
S&P
Source: Brinker Capital. Performance shown is based on a model account assuming an average 1.51% quarterly fee and is shown for illustrative purposes only. Past returns are no guarantee of future results.
DOMESTIC EQUITY 28%INTERNATIONAL EQUITY 23%FIXED INCOME 25%REAL ASSETS 6%ABSOLUTE RETURN 11%PRIVATE EQUITY 7%
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CrystalStrategy I
Asset allocation does not assure a profi t or protection against loss. Investing in any investment vehicle carries risk, including the possible loss of principal, and there can be no assurance that any investment strategy will provide positive performance over a period of time. The asset classes and/or investment strategies described in this publication may not be suitable for all investors. Investment decisions should be made based on the investor’s specifi c fi nancial needs and objectives, goals, time horizon, tax liability, and risk tolerance. When investing in managed accounts and wrap accounts, there may be additional fees and expenses added onto the fees of the underlying investment products.
For more information about Brinker Capital and our investment philosophy, including information on fees, you may request a copy of our Form ADV Part 2A from a Brinker Capital Client Services representative at 800.333.4573 or at [email protected]. Brinker Capital does not render tax, accounting, or legal advice.
Returns are based on actual market values and are weighted accordingly. Time periods were selected by Brinker Capital and are shown for illustrative purposes only. Returns are calculated gross (before the deduction) of advisory fees payable to Brinker Capital and any other expenses for services not covered by the advisory fee including administrative costs, which would reduce your return.
The net effect of the deduction of Brinker Capital’s fees on annualized performance, including the compounded effectover time, is determined by the relative size of the fee and the account’s investment performance. The chart to theright depicts the effect of a 1% management fee on the growth of one dollar over a ten year period at 10% (9% after fees), 5% (4% after fees) and 3% (2% after fees) assumed rates of return.
NEXT STEPSTo learn more about Crystal Strategy I and how it could help generate strong risk-adjusted returns regardless of market conditions:
Contact your fi nancial advisor
Call 800.333.4573 for more information on our investment philosophy, fees or a copy of our Form ADV Part 2A
Visit www.brinkercapital.com
Firm OverviewBrinker Capital is an investment management fi rm and one of the nation’s leading independent providers of managed account and mutual fund investment services. Through our innovative investment products, we seek to provide real purchasing power for investors and sustainable purchasing power for future generations. Brinker Capital was founded in 1987 by Charles Widger and is located in suburban Philadelphia.
Management TeamWilliam H. MillerChief Investment Offi cerB.A, Trinity College
Stuart P. Quint, III, CFASenior Investment Manager and International StrategistB.S. and B.A, University ofPennsylvania
Andrew Rosenberger, CFASenior Portfolio ManagerB.S., The Pennsylvania StateUniversity
brinkercapital.com 1055 Westlakes Drive / Suite 250 / Berwyn, PA 19312800.333.4573
Brinker Capital, Inc., a Registered Investment Advisor. CS1_INTRO
Year 1 2 3 4 5 6 7 8 9 1010% 1.10 1.21 1.33 1.46 1.61 1.77 1.95 2.14 2.36 2.599% 1.09 1.19 1.30 1.41 1.54 1.68 1.83 1.99 2.17 2.375% 1.05 1.10 1.16 1.22 1.28 1.34 1.41 1.48 1.55 1.634% 1.04 1.08 1.12 1.17 1.22 1.27 1.32 1.37 1.42 1.483% 1.03 1.06 1.09 1.13 1.16 1.19 1.23 1.27 1.30 1.342% 1.02 1.04 1.06 1.08 1.10 1.13 1.15 1.17 1.20 1.22
For Financial Advisor use only in a one-on-one presentation.
Brinker Capital Crystal Strategy I will vary its investment strategy depending on the perceived market and economic conditions. As a result, the portfolio is dynamic and will change over time. During turbulent markets, we can reduce risk through hedging or increase our weighting to more conservative strategies. During periods of economic and market growth, we can tilt the portfolio towards strategies more focused on capital appreciation.
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S&P 500 Crystal Strategy I
Crystal Strategy I
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1.00Historical Implied Beta
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