Advisers
Ten Investment “Truths”
I nvesting is a process, not an event
No investment process, as good as it may be, is perfect
Volatility / risk of your portfolio should never exceed your comfort level
E very investment proposal that sounds too good to be true, is
S ound investment portfolios are liquid-there is no substitute for liquidity
T o achieve your goals, you don’t have to hit homeruns, just don’t strikeout
M ake at least a 5 year commitment to your investment plan
E motional and tax-driven investment decisions are rarely good decisions
Never confuse investment information with investment knowledge
T he path to investment success is paved with proven investment management
principles and risk management techniques
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
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
Institutional Investment Process
Determine your investment
objectives and tolerance for risk
Report the results
Continuous portfolio
management
Set your asset
allocation policy
Build your portfolio
using proven investment
management principles
and risk management
techniques
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
Set Your Asset Allocation Policy
Security Selection 4.6%
Market Timing 1.8%
Asset
Allocation
91.5%
Other 2.1%
Source: Brinson, Singer, and Beebower (1991)
Asset Allocation - The Mixture of Stocks, Bonds, & Cash Is
The Primary Determinant of Volatility / Risk & Reward
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
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
Efficient Portfolios
100% Stocks
Expected Return
Portfolios above curve
are unattainable
80% Stocks
20% Bonds
60% Stocks
40% Bonds
40% Stocks
60% Bonds
Portfolios below curve are
inefficient – greater risk
than necessary to achieve
expected return
100% Bonds
Volatility / Risk
Structured to Maximize the Expected Return for the Level of
Volatility / Risk You Are Willing to Accept
Active Tax-Management To Enhance
Your Portfolio’s 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
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
Report The Results
 Comprehensive, understandable reporting package
 Monthly activity report
 Quarterly performance report
 Annual tax report
Institutional Investment Process –
A Disciplined, Scientific Process
Determine your investment
objectives and tolerance for risk
Report the results
Continuous portfolio
management
Set your asset
allocation policy
Build your portfolio
using proven investment
management principles
and risk management
techniques
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
Fee Schedule
Account Assets
On the first
On the next
On the next
On the next
On the next
On the next
On all amounts over
Annual
Management Fee
$ 250,000
$ 250,000
$ 250,000
$ 250,000
$ 250,000
$ 250,000
$ 1,500,000
1.20%
1.10%
0.80%
0.70%
0.40%
0.30%
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.