Investment Descriptions and Options

Transcription

1 Investment Descriptions and Options National Philanthropic Trust (NPT) provides several investment opportunities to diversify and grow your charitable contributions. To ensure that your contribution to NPT is professionally managed, investment funds have been carefully selected for their history of superior performance and their high-quality portfolio managers. Several investment strategies are available, each with different objectives and risk/reward profiles to meet your investment goals. Please review the following portfolio descriptions and investments before making your recommendation. If you need assistance, call toll free at (888) or send an to Options for Allocating Contributions Option 1 Money Market Funds Money market funds take the most conservative approach to maintaining original principal in the fund. UBS Select Prime Institutional Fund UBS Select Treasury Institutional Fund Option 2 Actively Managed Model Portfolios - Mutual Funds Utilizing best-in-class mutual funds, these actively managed portfolios have the potential to out-perform the market. Each strategy has an increasingly higher risk/reward profile. Conservative Portfolio Balanced Portfolio Total Return Portfolio Growth Portfolio Option 3 Index Fund Model Portfolios - Exchange Traded Funds Utilizing low-cost exchange-traded funds, these portfolios provide an economical way to achieve a comparable return to the market. Each strategy has an increasingly higher risk/reward profile. Conservative Portfolio Balanced Portfolio Total Return Portfolio Growth Portfolio Option 4 Personal Giving Strategy Custom Allocation Implement a personalized giving strategy from among the following best-in-class mutual funds based on your objectives. We encourage you to consult with your investment advisor when using this option. Mainstay ICAP Select Equity Prudential Jennison 20/20 Focus Wells Fargo Premier Large Cap Fund JP Morgan Mid Cap Value ING Mid Cap Opportunities ING Small Cap Opportunities Fund Fidelity Advisors Small Cap Value Aberdeen International Equity Federated International Small-Mid Company Aberdeen Emerging Markets Fund Virtus Emerging Markets Fidelity Advisors Emerging Markets Western Asset Core Fund Loomis Sayles Core Plus Bond Fund Calvert Ultra-Short Bond Fund Prudential Global Real Estate Principal Diversified Real Asset UBS Select Prime Institutional UBS Select Treasury Institutional Please note: NPT s Board of Trustees has sole responsibility for investing the donor-advised fund assets and may adjust the composition of the investments from time to time. Please remember, there is no assurance any strategy (or underlying fund) will achieve its objective. The data featured represents past performance, which is no guarantee of future results. Share prices and investment returns will fluctuate with changes in the market. Page 1 of 6

2 Option 1: Money Market Fund Money Market Fund 100% Money Market * 0.18% (18 basis points) - UBS Select Prime 0.18% (18 basis points) - UBS Select Treasury Risk Profile: Most conservative/lowest risk Strategy: Seeks to preserve principal Grantmaking: For donors who wish to maintain original capital throughout the duration of the fund 100% UBS Select Prime Institutional OR 100% UBS Select Treasury Institutional Option 2: Actively Managed Portfolios - Mutual Funds Conservative Portfolio 25% US Equities 15% International Equities 50% Fixed Income 1.05% (105 basis points) Risk Profile: Conservative/lower risk Strategy: Seeks to safeguard principal, provide liquidity and generate total return with conservative exposure to market volatility account within 5 years 7.5% Mainstay ICAP Select Equity 7.5% Wells Fargo Premier Large Cap Fund 2.5% JP Morgan Mid Cap Value 2.5% ING Mid Cap Opportunities 15% Aberdeen International Equity 18% Western Asset Core Fund 18% Loomis Sayles Core Plus Bond Fund 9% Calvert Ultra-Short Bond Fund 5% Prudential Global Real Estate 5% Principal Diversified Real Asset Fund Balanced Portfolio 20% International Equities 40% Fixed Income 1.03% (103 basis points) Risk Profile: Moderate/modest risk Strategy: Provide long-term capital growth and reasonable capital preservation through an asset allocation of equities, bonds and/or international investments account within 10 years 10% Mainstay ICAP Select Equity 10% Wells Fargo Premier Large Cap Fund 2.5% JP Morgan Mid Cap Value 2.5% ING Mid Cap Opportunities 15% Aberdeen International Equity 2.5% Aberdeen Emerging Markets 2.5% Virtus Emerging Markets 14% Western Asset Core Fund 14% Loomis Sayles Core Plus Bond Fund 7% Calvert Ultra-Short Bond Fund 5% Prudential Global Real Estate 5% Principal Diversified Real Asset *the Management Fee is the overall portfolio cost based on underlying expense ratios and their weighted allocations. NPT recalculates this fee periodically throughout the year. Page 2 of 6

3 Option 2: Actively Managed Portfolios - Mutual Funds (Continued) Total Return Portfolio 35% US Equities 25% International Equities 30% Fixed Income 1.09% (109 basis points) Risk Profile: Moderate growth/moderate risk Strategy: Seeks to enhance performance potential and appreciation consistent with preservation of capital and prudent risk taking use their account for a period greater than 10 years and/or intend to name charitable beneficiaries 10% Mainstay ICAP Select Equity 10% Wells Fargo Premier Large Cap Fund 5% JP Morgan Mid Cap Value 5% ING Mid Cap Opportunities 15% Aberdeen International Equity 5% Aberdeen Emerging Markets 5% Virtus Emerging Markets 10% Western Asset Core Fund 10% Loomis Sayles Core Plus Bond Fund 5% Calvert Ultra-Short Bond Fund 5% Prudential Global Real Estate 5% Principal Diversified Real Asset Growth Portfolio 35% International Equities 20% Fixed Income 10% REIT 1.15% (115 basis points) Risk Profile: Growth/higher risk and potential for highest return Strategy: Focuses on domestic stock funds, but also includes exposure to international stock funds for diversification and performance potential, carrying the highest risk of our model portfolios use their account for a period greater than 10 years and/or intend to name charitable beneficiaries 7.5% Mainstay ICAP Select Equity 7.5% Wells Fargo Premier Large Cap Fund 5% JP Morgan Mid Cap Value 5% ING Mid Cap Opportunities 25% Aberdeen International Equity 5% Aberdeen Emerging Markets 5% Virtus Emerging Markets 6% Western Asset Core Fund 6% Loomis Sayles Core Plus Bond Fund 3% Calvert Ultra-Short Bond Fund 10% Prudential Global Real Estate 5% Principal Diversified Real Asset Option 3: Index Fund Portfolios - Exchange Traded Funds Conservative Portfolio 25% US Equities 15% International Equities 50% Fixed Income 0.18% (18 basis points) Risk Profile: Conservative/lower risk Strategy: Seeks to safeguard principal provide liquidity and generate total return with conservative exposure to market volatility account within 5 years 15% ishares Russell 1000 Broad Index 5% ishares Russell Mid-Cap 15% ishares MSCI EAFE Index 5% Wisdom Tree International Real Estate 5% ishares Barclays TIPS Bond 36% ishares Barclays Aggregate Bond 9% ishares 1-3 Year Credit Bond Page 3 of 6

4 Option 3: Index Fund Portfolios - Exchange Traded Funds (Continued) Balanced Portfolio 20% International Equities 40% Fixed Income 0.21% (21 basis points) Risk Profile: Moderate/modest risk Strategy: Provide long-term capital growth and reasonable capital preservation through an asset allocation of equities, bonds and/or international investments account within 10 years 20% ishares Russell 1000 Broad Index 5% ishares Russell Mid-Cap 15% ishares MSCI EAFE Index 5% ishares MSCI Emerging Markets Index 5% Wisdom Tree International Real Estate 5% ishares Barclays TIPS Bond 28% ishares Barclays Aggregate Bond 7% ishares 1-3 Year Credit Bond Total Return Portfolio 35% US Equities 25% International Equities 30% Fixed Income 0.24% (24 basis points) Risk Profile: Moderate growth/moderate risk Strategy: Seeks to enhance performance potential and appreciation consistent with preservation of capital and prudent risk taking use their account for a period greater than 10 years and/or intend to name charitable beneficiaries 20% ishares Russell 1000 Broad Index 10% ishares Russell Mid-Cap 15% ishares MSCI EAFE Index 10% ishares MSCI Emerging Markets Index 5% Wisdom Tree International Real Estate 5% ishares Barclays TIPS Bond Fund 20% ishares Barclays Aggregate Fund 5% ishares Barclays 1-3 Year Credit Bond Growth Portfolio 35% International Equities 20% Fixed Income 10% REIT Investment Fee: 0.28% (28 basis points) Risk Profile: Growth/higher risk and potential for highest return Strategy: Focuses on domestic stock funds, but also includes exposure to international stock funds for diversification and performance potential, carrying the highest risk of our model portfolios use their account for a period greater than 10 years and/or intend to name charitable beneficiaries 15% ishares Russell 1000 Broad Index 10% ishares Russell Mid-Cap 25% ishares MSCI EAFE Index 10% ishares MSCI Emerging Markets Index 12% ishares Barclays Aggregate Fund 10% Wisdom Tree International Real Estate 3% ishares Barclays 1-3 Year Credit Bond 5% ishares Barclays TIPS Bond Page 4 of 6

5 Option 4: Personal Giving Strategy - Custom Allocation of Mutual Funds Personal Strategy Donor recommends an investment allocation among the investment offerings. Blended fee based on investment selection. For donors who seek to create an investment strategy that meets particular risk tolerance objectives and return goals. We strongly encourage donors to consult with their investment advisor when determining their investment allocation. Donors may customize the allocation of the investment of their donor-advised fund among the best-in-class mutual funds listed on page 1. Portfolio and Fund Money Market * Fund Fees Allocation UBS Select Prime Institutional 0.18% 100% Money Market 0.05% 0.05% 0.08% UBS Select Treasury Institutional 0.18% 100% Money Market 0.01% 0.01% 0.01% Actively Managed Model Portfolio * Portfolio Weighted Fees Allocation Conservative Portfolio 0.99% 50% Equities/50% Fixed Income (4.22%) 2.76% 4.18% Balanced Portfolio 1.04% 60% Equities/40% Fixed Income (4.53%) 2.69% 3.63% Total Return Portfolio 1.10% 70% Equities/30% Fixed Income (5.23%) 3.50% 4.07% Growth Portfolio 1.16% 80% Equities/20% Fixed Income (5.12%) 3.54% 3.97% Index Fund Model Portfolio * Portfolio Weighted Fees Allocation Conservative Portfolio 0.19% 50% Equities/50% Fixed Income (0.30%) 1.29% 3.22% Balanced Portfolio 0.22% 60% Equities/40% Fixed Income (2.04%) 4.51% 5.80% Total Return Portfolio 0.26% 70% Equities/30% Fixed Income (3.59%) 5.25% 6.47% Growth Portfolio 0.30% 80% Equities/20% Fixed Income (4.44%) 4.77% 6.39% *Through September 30, 2015 Note: The Passive portfolios, although similarly named, had been allocated differently than the Actively Managed portfolios since inception. It was not until 3Q14 that the allocation of the Active and Passive portfolios were aligned. Page 5 of 6

6 Portfolio and Fund (Continued) Mutual Fund * Portfolio Ticker Fees Category Mainstay ICAP Select Equity ICSRX 1.18% Large Cap Value -4.92% 8.84% 9.60% Prudential Jennison 20/20 Focus PTWAX 1.18% Large Cap Core -2.86% 9.84% 9.92% Wells Fargo Premier Large Cap EKJAX 1.11% Large Cap Growth 1.20% 11.08% 13.23% JP Morgan Mid Cap Value JAMCX 1.25% Mid Cap Value 1.53% 13.21% 14.07% Voya Mid Cap Opportunities NMCAX 1.34% Mid Cap Growth 2.27% 10.82% 11.72% Fidelity Small Cap Value FCVIX 1.37% Small Cap Value 7.09% 14.20% 12.67% Voya Small Cap. Op. Fund NSPAX 1.42% Small Cap Growth 1.08% 10.69% 12.56% Aberdeen International Equity GIGAX 1.33% International Equity % -2.56% 1.02% Federated International Small Co. ISCAX 1.86% Foreign Small-Mid Cap 0.52% 6.63% 5.76% Fidelity Advisors Emerging Markets FAMKX 1.52% Emerging Markets % -1.61% -2.73% Aberdeen Emerging Markets GEGAX 1.41% Emerging Markets % -6.10% NA Virtus Emerging Markets HEMZX 1.56% Emerging Markets % -2.40% 1.15% Western Asset Core Plus Bond Fund WAPAX 0.78% Core Plus Bond 2.19% 2.43% NA Calvert Ultra-Short Bond Fund CULAX 0.89% Short-term Bond 0.03% 0.63% 0.91% Loomis Sayles Core Plus Bond Fund NEFRX 0.79% Core Plus Bond -3.13% 1.05% 3.86% Prudential Global Real Estate PURAX 1.27% REIT 3.20% 6.51% 7.59% Principal Diversified Real Asset PRDAX 1.25% Real Assets % -1.99% 2.11% *Through September 30, 2015 Page 6 of 6