cp investor presentation_ma solution

8/7/2019 CP Investor Presentation_MA Solution

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Realizing The Investment Opportunity How Managed Accounts Can Help You Meet Your Investment Goals

Presented By: Jorge ReyesFirm: CP Capital SecuritiesDate: August 16, 2010


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What Is A Managed Account?

Privately Managed Account

Individually Managed Account

W r a p A c c o u n t


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A Managed Account a portfolio of stocks, bonds, or acombination of stocks and bonds chosen by a professional investment managerto achieve a specific objective, such as long-term growth or current income.

AN EXAMPLE OF A MANAGED ACCOUNT PORTFOLIO

Fixed Income(Intermediate Bond)Domestic Equity

(Large Cap Value)

Domestic Equity(Large Cap Growth)

Domestic Equity(Small Cap Value)

International Equity

(Intl Developed Markets)


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The Basics:How Do Managed AccountsCompare with Mutual Funds?


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Managed Accounts 101:Managed Accounts are like Mutual Funds in that

they are managed by professional investment managers whocontinuously monitor the portfolio to stay on top of new opportunities.

each managed account has a clearly defined objective. each managed account can be compared against a benchmark (or

family index) which will identify the progress being made towardsyour investment goals.


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Managed Accounts 101:Managed Accounts vs. Mutual Funds

Managed Accounts Mutual Funds You own shares in individual

securities You have no embedded gains You can time capital gains or losses You can avoid or include certain

investments You always know which investments

are in your account

You own fund shares, not individualsecurities

Youre vulnerable to embedded gains You have no control over capital gains or

losses You have no influence over the fund

portfolio You learn twice a year what investments

the fund owns


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Keep More of What You Earn

MANAGED ACCOUNTS MUTUAL FUNDS

Capital Gains Taxes onInvestment Earnings
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Lets Recap

Benefits of Managed Accounts

You own shares in individual securities You have no embedded gains You can time capital gains or losses You can avoid or include certain investments You always know which investments are in

your account


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The Key Players:

How Does A Managed Account Work?


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Investment Manager =Player(s)

Excel at respective positions

Focused style of play (managerskills are unique to discipline) The right combination of playersleads to improved performance(diversification) Each player contributes to aparticular position (specific style withno style drift)

Advisor =Coach

Hired to help owner identify

goals Recruits the right players (assetallocation & manager selection) Ensures that players adhere totheir positions (due diligenceguarantees consistency) Provides feedback on howplayers are doing (performancemonitoring)

Replaces players if not fulfillingrole (manager termination if necessary)

Investor =Team Owner

Investor accumulates wealth tobuy the team Goals need to be articulated inorder to win (retirement,childrens education, etc.) Has neither time nor expertise tobe his own coach

Using Managed Accounts is LikePlaying on a

Winning Team


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Working with Your Financial Advisor

Your Financial Plan A statement of your specific goals Your timeframe for achieving those goals Your risk tolerance Your need for liquidity, or available cash Your tax situation A summary of your current investments,

including both taxable accounts and retirementsaving plans

Any special concerns that affect your investmentchoices


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Allocating Your Assets

STOCKS

BONDS CASH

EQUITY :

Large Cap GrowthLarge Cap ValueLarge Cap CoreMid Cap GrowthMid Cap ValueMid Cap CoreSmall Cap GrowthSmall Cap ValueSmall Cap CoreInternationalGlobal

FIXED INCOME :

Intermediate BondIntermediateMunicipals Total ReturnMunicipalsHigh YieldREITs (Real EstateInvestment Trusts)

INVESTMENT STYLES

The appropriate blending of managers in anasset allocation recommendation can add

value. Constructing a portfolio with multipleinvestment managers can enhance overallportfolio performance over time.

REALESTATE

ANDOTHERS


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An Investment Manager Will: Follow a certain investment style the approach a

manager takes in choosing investments to meet a

specific objective. Monitor, evaluate, add and sell investments in responseto changing economic conditions or the shifting valueof individual holdings.

Provide an analysis of why decisions were made, what

securities the portfolio currently contains, and whetheror not the portfolio is on track to meet its goal(s).


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Making the Right Choice

Questions to Consider in Selecting an Investment Manager:

How will this manager help me meet my financial goals and will themanagers investments be consistent with my accounts objective?

Will the manager match or surpass the appropriate benchmarks and whatrisks would I be accepting?

How will I know whats happening in my account? Will the manager follow my special instructions?


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The Managed Account Process

Step 1 : Identify goals and objectivesSTEP

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Step 2 : Determine asset allocation policy

Step 3 : Recommend investment managers and implement strategy

Step 4 : Continuous portfolio and manager monitoring


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Investment Choice:

Are Managed Accounts RightFor You?


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A Perfect Fit You have $300,000 or more to invest You feel youll benefit from professional

investment management Youve recently inherited a substantial sum, sold

your interest in a business, or won a financialsettlement

You have retirement assets youre ready to roll over
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A Question of FeesIf you have a fee-based arrangement with your financialadvisor, then managed accounts could be the best optionfor you.

Your annual fee covers: Consultations with your financial advisor Consultations with some of the worlds leading institutionalinvestment managers A strategic asset allocation model that reflects your goals Ongoing manager due diligence Comprehensive quarterly statements Tax selling at year-end for taxable accounts Portfolio management and rebalancing Custody services Commission-free transactions (thru investment managers)


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Reporting:

Is Your Portfolio On Track?


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Account StatementReviewing your account statements with yourfinancial advisor can help you accommodatefor life changes that affect your investment

goals, and/or developments in the financialmarkets that may have changed your attitudetowards risk.


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Managed Accounts are ideal for investorsseeking a long-term, customized, goals-driven approach to investment planning.


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Thank You Jorge ReyesCP Capital Securities(305) 702-5531

[email protected]

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