BANCORPSOUTH Wealth Management INVESTMENT STRATEGY OVERVIEW REPORT

Transcription

1 BANCORPSOUTH Wealth Management INVESTMENT STRATEGY OVERVIEW REPORT As of July 31, 2015

2 BANCORPSOUTH Wealth Management STRATEGY FOUNDATION Five Pillars of our Investment Philosophy There is no such thing as a risk-free investment Know what you own and why you own it The market runs on fear and greed and will overact on the up and downsides Timing the market is impossible to successfully implement on a consistent basis There is no substitute for original investment research Core Competencies Asset Allocators Manager Evaluators Income Money Managers Asset Allocation Process Economic Analysis Current Events Fundamental Analysis Asset Allocation Market Research Relative Strength Technical Analysis

3 STRATEGY FOUNDATION BANCORPSOUTH Wealth Management Research Overview Philosophy Process Performance People Objectives To be competitive against the Barclay s Aggregate over a complete market cycle To outperform the S&P 500 over a complete market cycle Strategy Guidelines Most Volatile Strategy Growth Growth with Income Balanced Income with Growth Income Least Volatile Asset Class Min Neutral Max Disclaimer : The foregoing is for general information only. No guarantee is made as to its accuracy or completeness. BancorpSouth Bank and its affiliates do not assume any liability for any loss that may result from any use of any such information. Such information is not intended as personalized investment advice and is subject to change without notice.

4 Monthly Fact Sheet Report Date: As of 7/31/2015 Strategy Snapshots Trailing Returns As of Date: 7/31/2015 Data Point: Return YTD 1 Year 3 Years 5 Years 10 Years 15 Years Calendar Year Returns Data Point: Return YTD Characteristics Inception Date Cash Stock Bond Other 12 Mo Yield Expense Ratio Stock Style Box Bond Style Box 1/1/ È Ê 1/1/ È È 1/1/ È È Risk-Reward Time Period: 1/1/2007 to 7/31/ Return Std Dev Source: Morningstar Direct

5 Monthly Fact Sheet Strategy: Report Date: As of 7/31/2015 Calculation Benchmark: MSCI ACWI NR USD Morgan Stanley Capital International All Country World Index Investment Objective Strategy Asset Allocation Regional Allocation Por olio seeks long term capital growth over the full market cycle. Investment Strategy Team Jerry Hoeniges, CFA Jason Hawkins, CFA, CPA(Inac ve) Wes Thomas Anderson Garro, CFP Logan Barnes Stock 96.1 Bond 1.9 Cash 1.8 Other 0.2 Cash 1.8 US Equity 73.0 Non-US Equity 23.1 US Bond 1.1 Non-US Bond 0.9 Other 0.2 Portfolio Chracteristics 12 Mo Yield Net Expense Ratio # of Funds Inception Date Volatility Potential - High Trailing Returns /1/2007 Style Box Morningstar Equity Style Box Equity Style Value Blend Growth Large Mid Small Equity Style Value 33.6 Equity Style Core 33.6 Equity Style Growth 32.8 Style Box Morningstar Fixed Income Style Box Ltd Mod Ext High Med Low Fixed-Income Stats Average Eff Duration 0.1 Average Eff Maturity - Average Coupon 0.8 Average Price - Average Credit Quality 6.0 As of Date: 7/31/2015 Data Point: Return Calculation Benchmark: MSCI ACWI NR USD MSCI ACWI NR USD Risk-Reward Time Period: 8/1/2008 to 7/31/2015 Calculation Benchmark: MSCI ACWI NR USD MSCI ACWI NR USD Source: Morningstar Direct Return YTD 1 Year 3 Years 5 Years 7 Years Std Dev

6 Monthly Fact Sheet Strategy: Report Date: As of 7/31/2015 Calculation Benchmark: Growth with Income World Index 75 MSCI ACWI, 25 Barclays Aggregate Bond Investment Objective Strategy Asset Allocation Regional Allocation Portfolio seeks total return by emphasizing on long-term capital growth with income generation as a secondary factor over the full market cycle. Investment Strategy Team Jerry Hoeniges, CFA Jason Hawkins, CFA, CPA(Inac ve) Wes Thomas Anderson Garro, CFP Logan Barnes Stock 74.7 Bond 22.0 Cash 3.1 Other 0.2 Cash 3.1 US Equity 55.8 Non-US Equity 18.8 US Bond 18.9 Non-US Bond 3.1 Other 0.2 Portfolio Chracteristics 12 Mo Yield 1.99 Net Expense Ratio 0.14 # of Funds 7 Inception Date 1/1/2007 Volatility Potential - Above Average Trailing Returns Style Box Morningstar Equity Style Box Equity Style Value Blend Growth Large Mid Small Equity Style Value 33.6 Equity Style Core 33.6 Equity Style Growth 32.8 Style Box Morningstar Fixed Income Style Box Ltd Mod Ext High Med Low Fixed-Income Stats Average Eff Duration 5.1 Average Eff Maturity 7.9 Average Coupon 3.0 Average Price - Average Credit Quality 5.0 As of Date: 7/31/2015 Data Point: Return Calculation Benchmark: Growth with Income World Index Growth with Income World Index Risk-Reward Time Period: 8/1/2008 to 7/31/2015 Calculation Benchmark: Growth with Income World Index Growth with Income World Index Source: Morningstar Direct Return YTD 1 Year 3 Years 5 Years 7 Years Std Dev

7 Monthly Fact Sheet Strategy: Report Date: As of 7/31/2015 Calculation Benchmark: Balanced World Index 50 MSCI ACWI, 50 Barclays Aggregate Bond Investment Objective Strategy Asset Allocation Regional Allocation Por olio seeks total return through longterm capital growth and sustainable level of income genera on over the full market cycle. Investment Strategy Team Jerry Hoeniges, CFA Jason Hawkins, CFA, CPA(Inac ve) Wes Thomas Anderson Garro, CFP Logan Barnes Stock 50.5 Bond 44.2 Cash 5.2 Other 0.1 Cash 5.2 US Equity 38.8 Non-US Equity 11.6 US Bond 37.9 Non-US Bond 6.3 Other 0.1 Portfolio Chracteristics 12 Mo Yield 2.03 Net Expense Ratio 0.12 # of Funds 7 Inception Date 1/1/2007 Volatility Potential - Average Trailing Returns Style Box Morningstar Equity Style Box Equity Style Value Blend Growth Large Mid Small Equity Style Value 33.6 Equity Style Core 33.7 Equity Style Growth 32.7 Style Box Morningstar Fixed Income Style Box Ltd Mod Ext High Med Low Fixed-Income Stats Average Eff Duration 5.1 Average Eff Maturity 7.9 Average Coupon 3.0 Average Price - Average Credit Quality 5.0 As of Date: 7/31/2015 Data Point: Return Calculation Benchmark: Balanced World Index Balanced World Index Risk-Reward Time Period: 8/1/2008 to 7/31/2015 Calculation Benchmark: Balanced World Index Balanced World Index Source: Morningstar Direct Return YTD 1 Year 3 Years 5 Years 7 Years Std Dev

8 DISCLAIMERS BANCORPSOUTH Wealth Management Asset Allocation Strategies are comprised of non-proprietary mutual funds. All performance results are presented net of mutual fund fees, but do not include a charge for the Bank s fee. Past performance does not guarantee or indicate future results. Strategy composition and investment performance data assume daily rebalancing of each strategy according to the stated composition of the Strategy. Rebalancing typically occurs semi-annually, but may occur more frequently. The composition of each fund may be changed from time to time by adjusting the percentage allocated to a particular mutual fund, or by adding or removing a fund. Therefore, the actual returns experienced by an account invested in an Asset Allocation Strategy may have been higher or lower. Investment performance is based on information received from Morningstar, and is prepared with the use of Zephyr StyleADVISOR. It assumes reinvestment of all interest and dividends, although some interest and dividends are paid to the account in cash, and therefore not automatically reinvested in the Strategy. Investment performance also takes into consideration all changes in composition of the Strategies for the period reported. The information received from both Morningstar and Zephyr is believed to be accurate and complete. However, no warranty is given as to the accuracy or completeness of the information. Because the timing of purchases into and sales out of a Strategy within the month by an investor will also affect that investor s return, the returns shown are only intended to be generally representative of those experienced for the time periods indicated. Some of the mutual funds comprising the strategies, including money market mutual funds, may pay fees to BancorpSouth in connection with assets invested in these Asset Allocation Strategies. Those fees are generally referred to as Revenue Sharing. BancorpSouth will accept such fees from the funds that offer them. Currently, we receive Revenue Sharing only in the form of sub-transfer agency fees (for services related to buying, selling, and holding fund shares in your account) from some mutual funds, including money market funds, and those fees range from 0-15 basis points. The amount of Revenue Sharing we receive may vary from fund to fund, and may not apply to all funds. Revenue Sharing fees are a part of the fund s expense ratio, which reduces the fund s yield. Revenue Sharing fees are usually expressed in terms of basis points. A basis point represents 1/100th of one (1) percent. So, a Revenue Sharing fee of fifteen (15) basis points would amount to a charge of 15/100th s of one percent of the amount invested in the fund, and would reduce the fund s yield accordingly. However, the investment performance results presented here are net of any such fees. Revenue Sharing payments to BancorpSouth are accrued and paid on the basis of the average daily net assets of BancorpSouth daily valuation accounts invested in the respective funds, and will be retained by BancorpSouth for services rendered to your account. This information does not constitute investment advice, is not intended to be investment advice, and should not be taken as such. Mutual funds are not deposit products, they are not guaranteed by the Bank, they are not FDIC insured, and they may lose value. * The 12-Month Yield is the return generated by interest and dividends realized by the component funds over the previous 12-month period, as a percentage of the latest Net Asset Value of each of the funds. ** The Expense Ratio is the total weighted average fee of the funds combined within the strategy. *** As of November 2012, the 9 strategies were consolidated into 5 strategies. Historical Performance is the equal weighted combination of the prior used strategies. The exceptions to this are the Growth Strategy and Income Strategy retaining their past performance. ****Graphics and Definitions were obtained by using Morningstar and fi360.