2016-08 JCA Master Deck
Transcript of 2016-08 JCA Master Deck
Presenter: Jeff Anderson, SVP., National Sales Manager (888) 327-4600 ▪ www.efficient-portfolios.com
who we are
OverviewWho We Are
Time Tested Solutions
MISSION
We seek to provide superior returns
through diversified asset allocation.
Our portfolios attempt
to outperform their benchmark over an entire market cycle.
Efficient Market Advisors pioneered
managed ETF portfolios.
OVERVIEW
Founded in 2004
Firm-wide GIPS verification since
inception
Employee Owned
Who We Are
Assets Under Management
2004
AcquiredT.O. Richardson
AcquiredXTF Advisors
$926m
2006 2008 2010 2012 2014 2016
PSN identifies EMA as “Top Gun”
Morningstar launches “ETF Managed Portfolio Landscape”
PhilosophyWho We Are
Active Asset Allocation Passive Security Selection
Modern Portfolio Theory
At every level of risk, there is an optimal asset
allocation mix that is expected to produce the
highest return.
Costs Matter
ETFs generally have lower expense ratios than
traditional mutual funds, little internal trading and no unreported expenses.
Efficient Market Hypothesis
It is difficult for any stock or bond investor to
consistently or predictably outperform an asset class
benchmark.
TaxesMatter
ETFs are tax efficient and generally do not
distribute capital gains. The final return is what
matters.
Investment Policy Committee
Who We Are
Herb W. Morgan, IIIFOUNDER, CEO & CHIEF INVESTMENT OFFICER
Experience: Head of SMA/Advisory at LPL Financial, Senior Vice President at Dreyfus Funds and ING (Pilgrim) Funds. Former Trustee and Board Chair of San Diego City Employees’ Retirement System. Education: BA, Economics (Honors), University of California, Santa Cruz
Investment Policy Committee
Who We Are
Glenn A. Ambach, CFASENIOR PORTFOLIO MANAGER
Experience: Portfolio and investment management positions at Morgan Stanley, Ameriprise Financial, Wells Fargo Investments and American Express.
Education: Chartered Financial Analyst, CFA Institute; BA University of Wisconsin, Madison
Investment Policy Committee
Who We Are
Jeffrey C. Anderson, Jr. SR. VICE PRESIDENT – NATIONAL SALES MANAGER
Experience: Over 25 years of investment industry experience with Tullett & Tokyo Forex, Smith Barney and his own wealth management firm. Education: MBA, Pepperdine University; BA, Political Science – International Relations, UCLA. Professional Certificate in International Business, Thunderbird School of Global Management and Graduate Seminar in International Finance, City University, London.
Investment Policy Committee
Who We Are
Austine CroweINVESTMENT POLICY COMMITTEE MEMBER
Experience: EVP, Investment Committee Chairman and Lead Portfolio Manager, T.O. Richardson Company. Former member of the Air Line Pilots Association Retirement and Insurance Committee. Education: BS, Mathematics and Aeronautical Engineering, U.S. Naval Academy
Investment Policy Committee
Who We Are
what we do
The ProblemWhat We Do
Asset Allocation Determines Variability of Performance
Clients Often Fail to Allocate
Assets Efficiently &
Typical SMA Allocation*What We do
Missing Asset ClassesHigh yield, Preferreds, Convertibles,
Emerging Markets (E&D), Small Cap, Mid Cap, Sector, & Alternatives
International
Large Cap
Core Bond
$750kAverage Relationship Size
3 AverageAsset Classes
*Source: Cerulli Associates
EMA’s Dynamic Asset Allocation Solution
What We Do
A Complete Institutional Investment Solution
Incorporating Robust Asset Allocation Models
Using Low-Cost Exchange Traded Funds
how we do it
Strategy ProcessHow We Do It
A Robust Approach to Asset Allocation
Strategic
Time HorizonRisk Tolerance
Historic OptimizationMonte Carlo Simulation
Tactical
OpinionsSignals
Cycle AnalysisValuations
Metrics
Opportunistic
UniqueUnexpected
Real-time
EMA’s Approach:Strategic, Tactical and Opportunistic
What We Do
15 Portfolios optimized according to five unique time horizons, each with a conservative, moderate or aggressive risk tilt.
Portfolio Construction
What We Do
Optimized Portfolios Built For When You Need the Money
AssetsHow We Do It
Active Asset Allocation with ETFs
Equities
US or foreign large cap, mid cap, small cap; real estate
investment trusts; sector or industry as well as emerging
markets.
Cash
Money market and bank deposit accounts.
Alternative Investments /
Absolute Return
Commodities, precious metals, currencies, timber,
agriculture, managed futures, hedge funds
replication, arbitrage and others.
Fixed Income
Investment grade, high yield, preferred stocks, foreign or domestic, government and
agency and emerging market.
why us?
Not All ETF Strategists Are Created EqualWhy Us?
Many Take the Wrong Approach:
They Ignore Asset Allocation or
Go Pure “Tactical”
Thought Leadership
Why Us?
Our Media Mentions
“Efficient Market Advisors dominated the managed ETF US balanced universe…” – Informa Investment Solutions April 20, 2011 “
One of the Longest Pure ETF Track Records In The Industry
Why Us?
124 Pure ETF Strategists that claim Compliance with GIPS for 10 Plus Years
760 ETF Strategists tracked by Morningstar
544 Pure ETF Strategists
359 Pure ETF Strategists that claim Compliance with GIPS
210 Pure ETF Strategists that claim Compliance with GIPS for 5 Plus Years
15 Pure ETF Strategies from EMA that claim Compliance with GIPS for 10 Plus Years
*Source: http://efficient-portfolios.com/wp-content/uploads/2016/06/Q1-2016-Morningstar-Report-Highlighted.pdf2_.pdf
PerformanceWhy Us?
EMA DominatedMorningstar’s Five-YearRankings
EMA 11-19 Aggressive, Moderate & Conservative, 6-10 Aggressive and Moderate, and 2-5 Aggressive Portfolios ranked in the top 10 of Hybrid US Balanced Strategies
# 4,6,7,8,9 & 10
EMA’s 20 Plus Years Moderate, Aggressive & Conservative Portfolios ranked first, second and fourth among Hybrid US Equity Strategies
# 1, 2 & 3
EMA Taking Income Aggressive, Moderate & Conservative Portfolios ranked first, second and third among Hybrid US Fixed Income Strategies
# 7,8 & 10
Source: Morningstar ETF Managed Portfolios Landscape Summary Q1 2016
thankyou
DisclosuresThis material is for your private information. The views expressed are the views of Efficient Market Advisors, LLC and are subject to change based on market and other conditions. The opinions expressed may differ from those with different investment philosophies. The information provided does not constitute investment advice, and it should not be relied on as such. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon.
There are risks involved in investing in ETFs, including the possible loss of money invested. ETFs involve risks for investors, including market risk, supply and demand, tracking error and excessive trading. Since an ETF’s share price is determined by market supply and demand forces, investors may purchase shares at a premium or discount to their net asset value. Investments in common equity ETFs are subject to systematic risk of a declining economy, any industry specific risk, and have a low priority in terms of recovery of assets in the event of a company’s liquidation.
Past performance is not indicative of future results, and there can be no assurance, and clients should not assume, that future performance of any EMA managed portfolios will be comparable to their past performance. Investment returns and principal value will fluctuate, so that investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited.
Efficient Market Advisors, LLC (EMA) claims compliance with the Global Investment Performance Standards (GIPS). EMA has been independently verified for the periods November 1, 2004 through September 30, 2015. Verification assesses whether (1) EMA has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis, and (2) EMA’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. EMA’s Verification Report and its policies for valuing portfolios, calculating performance and preparing compliant presentations are available upon request by calling EMA at 888-327-4600.
EMA is an SEC-registered investment advisor that constructs investment portfolios using Exchange-Traded Funds (ETFs). Founded in 2004 for the sole purpose of managing ETF based separate accounts, EMA serves high net-worth investors, trusts, foundations, retirement plans and institutions. EMA has one of the longest pure-ETF investment track records in the investment management industry. EMA utilizes proprietary and third-party research to construct ETF portfolios that offer investors highly-diversified asset class exposure that is transparent, liquid, low-cost and tax-efficient. EMA’s mission is to deliver superior investment returns over full market cycles through the implementation of propriety asset allocation processes.
DisclosuresThe content of Informa Investment Solutions’ PSN Top Guns manager rankings is intended for use by qualified investment professionals. Please consult with an investment professional before making any investment using content or implied content from any PSN Top Guns.
Because of the possibility of human or mechanical error by Informa Investment Solutions’ sources or others, IIS does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IIS makes NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall IIS be liable for any indirect, special or consequential damages in connection with use of any information or derived using information based on any PSN Top Guns results.
The one-year period peer groups were created using the information collected through the PSN investment manager questionnaire and uses only gross of fee returns. These top performers are strictly based on returns for one-year period. The three-year peer groups were created using the information collected through the PSN investment manager questionnaire and uses only gross of fee returns. These top performers are strictly based on returns for three-year period.
The three-year Entire US Balanced Universe peer groups were created using the information collected through the PSN investment manager questionnaire and uses only gross of fee returns. Products must have an R-Squared of 0.80 or greater relative to the style benchmark for the recent five year period. Moreover, products must have returns greater than the style benchmark for the three latest three-year rolling periods. The top ten returns for the latest three-year period then become the Top Guns.
Morningstar depends upon investment firms to provide it with accurate and complete data. To the extent that Morningstar receives data deficient in any way, the data and statistics provided by Morningstar may be compromised. In addition, because the data contained in Morningstar’s database are primarily backward looking (i.e., they are comprised of historical performance statistics), neither the data nor Morningstar’s analysis of them can be relied upon to predict or assess future performance of an individual investment, any particular industry segment or the totality of all strategies or investment vehicles in a particular industry. As a general matter, any return or related statistics that are based upon a limited number of data points are considered statistically suspect and, therefore, may be of limited value.
Morningstar does not provide investment advice or act as an investment advisor to anyone in any jurisdiction with respect to any information, data, analyses or opinions contained herein. All such information, data, analyses and opinions are subject to change without notice. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of the content of this report or any information contained in or derived from it.
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