Private Asset Management

boliviahonorableΔιαχείριση

18 Νοε 2013 (πριν από 3 χρόνια και 10 μήνες)

58 εμφανίσεις

TIAA-CREF Trust Company, FSB
Private
Asset Management
Customized investment solutions to
meet your unique needs over time
* As of December 30, 2011.
About TIAA-CREF Trust Company’s Private Asset Management
TIAA-CREF Trust Company provides Private Asset Management, estate planning
and fiduciary services for individuals, families, foundations and other institutions,
managing a total of more than $6 billion* in assets. We have a clear and long-
held commitment to serving the financial best interests of those in the academic,
governmental, medical, cultural and research fields.
As part of the wealth management arm of TIAA-CREF, Private Asset Management
is our premier investment management service for individuals who need a trusted
professional advisor to create a customized investment portfolio that addresses
multiple financial goals and complex financial needs. For over a decade, we have
been helping our clients throughout the United States achieve their financial
goals, including:

Managing your portfolio to address the complexity of multiple financial
goals — short- and long-term

Designing a portfolio that seeks to provide more consistent returns and
preserve capital by managing downside risk in volatile markets

Aiming to minimize the impact of taxes and investment fees
Our asset management approach is driven by a disciplined, time-tested
research process, personalized through a one-on-one relationship to meet
your distinct needs.
Table of contents
Minimizing the impact of market volatility ............4
Stocks: buying financially sound companies ..........6
Fixed income: actively managing portfolios and risk.....7
Stringent due diligence in selecting mutual funds ......8
Overview of how we build your customized portfolio.....9
1
A personal level of service for
your unique financial situation
No two people are alike. Your dreams are your
own. But one common concern you share
with others is the risk of losing the financial
ability to achieve those dreams. Whether
you’re focused on the needs of your family, a
business or foundation, we understand that
as wealth increases, so does the complexity
of wealth management.
You need to organize your investments to
address differing priorities and multiple
financial goals. You want to design your
portfolio to respond to current retirement and
income planning needs, including preserving
your investments in down markets. At the
same time, it’s important to address other
important goals, such as estate planning
and charitable giving. You’ll want to take into
account all of your assets, which may require
consolidation to plan effectively and minimize
taxes and investment fees. Inevitably, complex
needs require a personalized approach, a
thorough understanding of your goals and
aspirations, and expertise and services to
support them — all at a reasonable cost.
With TIAA-CREF Private Asset Management, a
dedicated Portfolio Manager coordinates all
of the Trust Company’s specialized resources
and develops a customized solution that’s
right for you.
2
Our distinctive value combines
the high-touch personalization
of a small investment boutique
and the research capabilities
of a large trust company.
2
3
When you meet with your Portfolio Manager, your one-on-one relationship
will be very personal, supporting the depth of trust and understanding
you might have with a local financial advisor. Your Portfolio Manager is
highly skilled in designing custom portfolios, but also collaborates closely
with a specialized group of more than a dozen investment analysts. This
team approach focuses on identifying better investment opportunities
and sophisticated risk management strategies to support our clients’
long-term goals through changing market and economic conditions.
Addressing your unique needs
Your Portfolio Manager will dig deep to uncover
the range of goals you envision over different time
spans for you, your family, and future generations.
You’ll discuss your long-term objectives for
priority goals, whether retirement income,
college funding, charitable giving or estate
planning. Your time horizon for each of these
goals and your need for asset preservation will
guide your Portfolio Manager in constructing
a portfolio tailored for you. Each investment
we select for your portfolio is designed to
support one of your needs. You’ll receive a
customized portfolio not just for the future you
envision for yourself, but also for loved ones
for generations to come.
With a detailed understanding of your goals,
we’ll assemble a team of professionals whose
expertise is dedicated to portfolio management
and your best interests. You will never be a
number to us. Your complex needs require highly
specialized knowledge in a number of areas,
including trusts and estate planning, tax-efficient
investing, or everyday account management.
To ensure a completely integrated approach,
your Portfolio Manager will coordinate your
financial information with any external managers,
accountants and attorneys who may serve you.
On an ongoing basis, you’ll have a
personalized portfolio that truly reflects your
unique goals and situation.
4
Minimizing the impact
of market volatility
At Private Asset Management, our investment
philosophy stresses the importance of risk
management, particularly keeping a long-term
perspective. But given increasing market
volatility, you need an effective strategy that
over time will enable you to reach your goals.
That’s why, in managing risk, we emphasize a
more advanced approach to asset allocation.
Our research group has developed innovative
allocation models exclusively for our clients,
based on expected portfolio performance under
thousands of different economic and market
scenarios. These research-driven allocations
provide more ways to diversify than do
traditional approaches, to help reduce reliance
on stocks and seek improved consistency
of returns over time. For instance, we can
consider diversifying your portfolio with fixed-
income investments that have the potential to
perform like stocks, but fluctuate less in price,
such as emerging market debt, inflation-linked
bonds, and high-yield bonds. Our advanced
approaches to asset allocation and portfolio
construction are designed to help:

Improve overall risk-adjusted returns and
manage downside risk

Enhance overall portfolio diversification

Improve downside risk posture in extreme
market environments, especially for clients
relying on regular income distributions
We believe that over the long term our asset
allocation approach to managing downside risk
will be essential for reaching your goals.
The upside of the downside
Not all financial services providers share our
risk management philosophy. Some Portfolio
Managers believe the only way to generate
excess returns is to take on additional risk,
assuming that outperforming in up markets
is the best way to grow your portfolio. As
continuing market volatility has shown,
however, outperforming when markets are
down is actually more important to the health
of your portfolio, especially if you’re making
regular withdrawals over time. The goal of our
Portfolio Managers is to construct a portfolio
that manages downside risk and volatility,
while striving to achieve strong investment
returns. The graph (right) illustrates the
difference this can make.
5
In this example, both portfolios begin with an
initial investment of $100,000 and had an average
annualized return of -2.5% over two years. Portfolio A
outperforms in year 1 of an up market and Portfolio
B outperforms in year 2 of a down market. Looking
at average returns, you might conclude that these
portfolios performed the same. But did they? Portfolio
B is worth $1,500 more than Portfolio A. Why?
Because Portfolio B outperformed during the down
market, rather than the up one, it lost significantly
less of its first-year gains than did Portfolio A. This
is why we believe that managing downside risk is so
critical to your portfolio over the long term.
This illustration is not intended to depict the
performance of any specific investment or account.
Past performance is not indicative of future returns.
A tale of two portfolios
Same Average Annualized Return, But Different Ending Values
0
Initial Investment
40000
Portfolio
A
Portfolio
B
80000 120000
$100,000
$115,000 (+15%)
$92,000 (–20%)
(+10%)
(–15%)
$100,000
$110,000
$93,500
Year 1 Ending Value Year 2 Ending Value
0
Initial Investment
Year 1 Year 2
40000
Portfolio
A
Portfolio
B
80000
$100,000
+10%
–10%
$100,000
$115,000 (+15%)
$92,000 (–20%)
(+10%)
(–15%)
$100,000
$110,000
$93,500
Year 1 Ending Value
Year 1 Year 2 Avg Annual Return Total
Portfolio A 15% -20% -2.5% $92,000
Portfolio B 10% -15% -2.5% $93,500
Year 2 Ending Value
6
Disciplined research can
identify better investment
opportunities
After working with your Portfolio Manager
to create an appropriate asset allocation,
our research teams apply disciplined
evaluation and screening processes to
identify better investment opportunities.
Stocks: buying financially
sound companies
When investing in individual stocks is suitable
for a portfolio, we research each stock as if we
were buying the whole company. We conduct
exhaustive fundamental research into how
the company is financed and managed. We
want to know if the company has a scalable
business model, strong managers and a
distinct competitive advantage.
As we seek to generate better-than-average
market returns while minimizing fluctuations in
portfolio value, our selection process focuses
on the following:

Long-Term Value and Yield — Companies
selling for less than their actual long-term
value and offering high free cash flow yields
and consistently growing dividends

Durability and Financial Strength —
Companies generally possessing strong
brands, low capital intensity, consistently
high profit margins, sustainable competitive
advantages, and strong balance sheets
Creating a Broadly Diversified
Portfolio of Stocks
Narrowing down the selection. Our investable
universe consists of the top 1,000 stocks by
market cap (number of shares times the share
price). Screening and research narrow the
universe to a buy list of 80 to 100 stocks. Final
portfolios are made up of 40 to 60 holdings
(large-cap and mid-cap stocks benchmarked to
the Standard & Poor’s 500 Index).
Effectively allocating among sectors. Portfolio
Managers may overweight and underweight
specific sectors (within tightly controlled risk
parameters) to capture more attractive risk-
reward opportunities.
Developing a sound sell strategy. Our Portfolio
Managers typically sell companies when
price objectives have been met, competitive
advantages have weakened, or more attractive
investments are available.
7
Fixed income: actively managing
portfolios and risk
Our disciplined investment process focuses
on delivering consistent long-term performance
while preserving capital through stringent
risk management. Economic analysis and
interest rate trends contribute to a dynamic
economic outlook that guides strategic
portfolio composition.
To help provide the most value possible, we
apply distinct approaches to taxable and tax-
exempt bonds, offering separate strategies to
address your investment needs.
Taxable Fixed-Income Investments
Our fixed-income team works with your Portfolio
Manager to:

Preserve capital through credit due diligence
and active oversight of securities

Use investment-grade securities to create
high-quality portfolios with an average
rating of AA

Minimize portfolio fluctuations by selecting
maturities of less than 10 years, and
keeping the average maturity of a portfolio
within three to five years

Strategically adjust the portfolio to take
advantage of yield curve trends and sector
opportunities
Tax-Exempt Fixed-Income
Investments
Our fixed-income team works with your Portfolio
Manager to:

Take advantage of inefficiencies and
anomalies within municipal bond markets

Preserve capital through active, ongoing
management of credit exposures

Select high-quality bonds in less volatile
sectors to help buffer the portfolio from
difficult conditions in municipal markets or
the overall economy

Appropriately manage interest rate risk
exposure with thorough analysis of yield
curve trends
8
Mutual Fund and ETF Universe (4,700 funds)
We focus on the share class with the longest history
Core List
Consists of the top 25 percent of funds in quantitative evaluation
Stringent due diligence in
selecting mutual funds
Pairing Managers for
Up and Down Markets
The goal is to help reduce
your downside portfolio
risk with our Manager
Pairing Strategy — when
appropriate for your
investment objectives.
Overview

We identify investment
managers with a
demon strated record of
consistently outperform-
ing their peers in falling
markets and those who
outperform their peers
in rising markets.

We believe the pairing
of managers outperform-
ing in different market
cycles helps reduce
volatility and increases
the likelihood of out-
performing a benchmark
index over a full market
cycle.

Client risk thresholds
determine the percent-
age exposure to the two
types of managers in
each asset class and
investment style.
Our research area for mutual fund screening, the Investment Strategy Group, continuously
monitors an approved list of mutual funds and Exchange-Traded Funds (ETFs). They use
firsthand research of investment managers accumulated during the past 25 years to
screen nearly 5,000 mutual funds — and create a recommended list of 100 or fewer
funds. Your Portfolio Manager uses the list to select funds considered best suited to
your objectives.
Reference List of
Approved Investments
Quantitative
Evaluation
We screen by asset
class, subclass, style
and operational criteria,
including eliminating
funds whose managers
have less than three
years of tenure. We
sort funds into passive,
active and alternative
strategies, ranking them
by performance in rising
and falling markets.
Qualitative
Review
We conduct a rigorous
analysis of fund
complexes and investment
strategies. We interview
each manager regarding
research process, risk
management process
and asset valuation
methodology. Finally, we
select the funds and ETFs
we believe to be the best
in each asset class by
performance in rising and
falling markets.
Ongoing Due
Diligence

We continuously monitor
approved funds to ensure
they continue to meet our
standards — and yours.
This recommended list
typically consists of no
more than 100 funds.
We also identify funds on
the list better suited for
tax management, socially
responsible investing, and
other preferences.
9
Overview of how we build
your customized portfolio
Customized
Portfolio
Step 1
Establishing your goals and account type
Once we understand your unique needs and review your current portfolio,
risk profile and other information, we will:

Develop your investment objectives

Write your Investment Policy Statement

Set up the appropriate account type: Trust, IRA, agency, or other

Establish accounting procedures and sub-accounts, if required
Step 2
Creating your asset allocation
Based on your investment objectives, risk profile and tax considerations,
our research area will:

Align your needs with one of our many asset allocation strategies

Provide detailed recommendations on allocating your portfolio among equities,
fixed income, cash, and alternatives within those asset classes
Step 3
Constructing your portfolio
Your dedicated Portfolio Manager builds your custom portfolio by personally selecting
investments within each asset class, taking into account your preferences for
socially responsible investments, active vs. passive management, and tax efficiency.
Investments can include:

Mutual funds and ETFs — from those on the approved list — that best meet
your unique needs, objectives and preferences

If appropriate, individual stocks or bonds selected by our equity and fixed-
income teams
Step 4
Ongoing risk management, review and more
We continuously monitor your portfolio — on an individual investment and overall
basis — to ensure it remains in line with both your risk and performance expectations.
To keep you on track, your Portfolio Manager will regularly:

Rebalance your portfolio

Communicate results

Discuss changing needs or objectives

Coordinate your financial information with external managers, accountants, or
attorneys to ensure a completely integrated approach to meeting your needs
10
Designing the right solution — together
Type of Client and
Need
Entrepreneur
Long-term financial planning with self-employed income
Shifting to Retirement Income
Shifting from accumulation to building a
distribution plan
Established
Managing financial needs in retirement
Philanthropic
Board member managing a foundation or endowment
Example Martin Albertson
Age: 46
Occupation: Entrepreneur and Business Owner
Family: Married with three children (ages 3, 10 and 16)
Prior TIAA-CREF relationship: none
Lydia Haden
Age: 55
Occupation: Professor
Family: Married with two grown children
Prior TIAA-CREF relationship: retirement
plan participant
David Hershey
Age: 70
Occupation: Retired Physician
Family: Married with grown children and grandchildren
Prior TIAA-CREF relationship: retirement plan participant
Margaret Brown
Age: 68
Occupation: Retired Hospital Administrator; Currently
serves as board member for hospital’s endowment
Prior TIAA-CREF relationship: retirement plan participant
and HR benefits supervisor for hospital retirement plan
Financial Details Current income: $300,000
Portfolio size: $3.5 million (not including business
interests)
Current income: $150,000
Portfolio size: $1.2 million
Current income: $200,000
Portfolio size: $10.2 million
Endowment managed by hospital board: $20 million
Financial Needs Martin and his wife:

Invest self-employed income for retirement

Save enough for college tuition for three children

Consider taking more risk in exchange for
long-term growth
Lydia and her husband:

Manage accounts with several
different investment firms

Provide income to maintain two
homes in retirement

Gain comprehensive perspective on
all their assets
David and his wife:

Coordinate investments with estate and legacy
planning

Establish trustee relationship to manage portfolio
if incapacitated

Establish trust accounts to pay for grandchildren’s
education
Foundation:

Better risk management following losses in bear
market

Revise investment policy and improve returns to
support 4% annual spending commitments
Portfolio Manager
Solution
Martin and his wife have more than enough current
income to assume additional risk using this approach:

Aggressive allocation to equities. Individual
stocks selected for large- and mid-cap
allocations, supplemented by mutual funds,
ETFs, and long/short funds

Portfolio of individual bonds provides limited
fixed-income exposure to diversify risk
Lydia consolidated 100% of family
assets in a customized portfolio using
this approach:

Long-term conservative allocation
using mutual funds and ETFs to
provide substantial fixed-income
exposure across corporate and
government bonds in the United
States and abroad

Exposure to growth-oriented equity
mutual funds to pursue principal
growth and inflation protection
The Portfolio Manager for David and his wife works
with Trust Company specialists to establish:

Investment Advisory Account enabling David and
his wife to stay involved in investment decisions
for as long as they’re able

Long-term, moderately aggressive allocation
to pursue asset growth for the benefit of children
and grandchildren

Trusts for grandchildren’s education managed
as a single portfolio using same strategy
Based on income and spending concerns, board should
set up long-term, moderate allocation as follows:

Taxable portfolio of individual bonds, supplemented
with high-yield and emerging market debt, to meet
spending requirements

Create an equity portion made up of individual
stocks, with long/short mutual funds and real
estate investment trusts (REITs) for diversification
To give you a better picture of how your Portfolio Manager addresses your unique financial needs,
take a look at the following hypothetical scenarios.
The profiles above were created to show how TIAA-CREF Trust Company works with each client to create a
portfolio tailored to his or her financial situation. These examples are fictional and for illustrative purposes only.
Your Private Asset Management team will work with you to develop your personalized portfolio.
11
Type of Client and
Need
Entrepreneur
Long-term financial planning with self-employed income
Shifting to Retirement Income
Shifting from accumulation to building a
distribution plan
Established
Managing financial needs in retirement
Philanthropic
Board member managing a foundation or endowment
Example Martin Albertson
Age: 46
Occupation: Entrepreneur and Business Owner
Family: Married with three children (ages 3, 10 and 16)
Prior TIAA-CREF relationship: none
Lydia Haden
Age: 55
Occupation: Professor
Family: Married with two grown children
Prior TIAA-CREF relationship: retirement
plan participant
David Hershey
Age: 70
Occupation: Retired Physician
Family: Married with grown children and grandchildren
Prior TIAA-CREF relationship: retirement plan participant
Margaret Brown
Age: 68
Occupation: Retired Hospital Administrator; Currently
serves as board member for hospital’s endowment
Prior TIAA-CREF relationship: retirement plan participant
and HR benefits supervisor for hospital retirement plan
Financial Details Current income: $300,000
Portfolio size: $3.5 million (not including business
interests)
Current income: $150,000
Portfolio size: $1.2 million
Current income: $200,000
Portfolio size: $10.2 million
Endowment managed by hospital board: $20 million
Financial Needs Martin and his wife:

Invest self-employed income for retirement

Save enough for college tuition for three children

Consider taking more risk in exchange for
long-term growth
Lydia and her husband:

Manage accounts with several
different investment firms

Provide income to maintain two
homes in retirement

Gain comprehensive perspective on
all their assets
David and his wife:

Coordinate investments with estate and legacy
planning

Establish trustee relationship to manage portfolio
if incapacitated

Establish trust accounts to pay for grandchildren’s
education
Foundation:

Better risk management following losses in bear
market

Revise investment policy and improve returns to
support 4% annual spending commitments
Portfolio Manager
Solution
Martin and his wife have more than enough current
income to assume additional risk using this approach:

Aggressive allocation to equities. Individual
stocks selected for large- and mid-cap
allocations, supplemented by mutual funds,
ETFs, and long/short funds

Portfolio of individual bonds provides limited
fixed-income exposure to diversify risk
Lydia consolidated 100% of family
assets in a customized portfolio using
this approach:

Long-term conservative allocation
using mutual funds and ETFs to
provide substantial fixed-income
exposure across corporate and
government bonds in the United
States and abroad

Exposure to growth-oriented equity
mutual funds to pursue principal
growth and inflation protection
The Portfolio Manager for David and his wife works
with Trust Company specialists to establish:

Investment Advisory Account enabling David and
his wife to stay involved in investment decisions
for as long as they’re able

Long-term, moderately aggressive allocation
to pursue asset growth for the benefit of children
and grandchildren

Trusts for grandchildren’s education managed
as a single portfolio using same strategy
Based on income and spending concerns, board should
set up long-term, moderate allocation as follows:

Taxable portfolio of individual bonds, supplemented
with high-yield and emerging market debt, to meet
spending requirements

Create an equity portion made up of individual
stocks, with long/short mutual funds and real
estate investment trusts (REITs) for diversification
12
Benefits of TIAA-CREF
Private Asset Management
Whether your desire is to leave a legacy for your
children, grow your foundation’s endowment, or
meet your income needs in retirement, Private
Asset Management can offer the solutions you
need and the service you deserve.
You can only reach your unique goals when you
have a plan that’s tailored for you and designed
for the long term by helping to manage downside
risk. Our level of ongoing personalized attention
assures that:

Your dedicated Portfolio Manager addresses
your multiple goals by keeping the portfolio
aligned with your long-term objectives, risk
tolerance, the time you’ve set to reach each
goal, and tax sensitivity.

Our seasoned research teams identify
an effective asset allocation strategy
and selection of investments, based on
collaboration with your Portfolio Manager.

Our risk management approach
incorporates advanced asset allocation
to help reduce losses during periods of
economic uncertainty and market volatility.

Investment fees are exceptionally
competitive with industry standards,
particularly when you take into account
our personalized level of attention and
in-depth expertise.
12
13
To start designing your individual plan,
please contact your TIAA-CREF Advisor,
Consultant or Trust Company representative.
Or, call 888 842-9001.
Business card slot
C1973 A12412 (01/12)
The tax information contained in this booklet is not intended to be used and cannot be used by
any taxpayer for the purpose of avoiding tax penalties. It was written to support the promotion
of TIAA-CREF Trust Company, FSB. Taxpayers should seek advice based on their own particular
circumstances from an independent tax advisor.
© 2012 TIAA-CREF Trust Company, FSB, One Metropolitan Square, 211 North Broadway, St. Louis, MO 63102
Investment, insurance and annuity products are not FDIC insured,
are not bank guaranteed, are not deposits, are not insured by any
federal government agency, are not a condition to any banking
service or activity, and may lose value.