innovative investment strategies - cuna mutual...

Innovative investment strategies

Madison Asset Management, LLC550 Science Drive • Madison, WI 53711

019-0068 (1110)


Each portfolio is subject to the risks and expenses of the underlying funds in direct proportion to the allocation of assets among the underlying funds.

Sponsored by Madison Asset Management, LLC. Please refer to the MEMBERS Managed Account Program Disclosure Brochure for more details about the program. Non-deposit investment products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by any financial institution.

Innovative strategies for the

informed investor

Investing today requires many decisions. Your

investment choices have dramatically expanded

in number, variety and complexity. Successful

investment management requires expertise and

time to devise an investment strategy, analyze

financial markets, research investments and

build, monitor and rebalance your portfolio.

That’s why professional investment management

has become increasingly important in helping

you achieve your goals.

C L E A R A N D S I M P L E

The MEMBERS® Managed Account Program offers professional investment management tailored to your individual needs. With a variety of investment strategies available, we’re confident we can build a portfolio to match your individual goals, objectives and tolerance for investment risk.

Sophisticated portfolio management The MEMBERS Managed Account Program provides:

• Professional,institutional-level portfolio management.

• Multipleinvestmentstrategiestomatch your objectives: Alpha Advantage Exchange-TradedFund(ETF) Tax-Sensitive

• Best-in-classinvestmentsthathave passed our rigorous and comprehensive screening process.

• Continuousmonitoringofyouraccount, with portfolio management decisions made and implemented quickly, as needed.

• Arebalancingstrategythatensuresa consistent allocation; staying aligned with your objectives.

Strategic, objective, long-term investment philosophy with sensitivity to riskThe MEMBERS Managed Account Program strives to deliver consistent and predictable portfolio performance with a keen eye on risk management.

Asset allocationSuccessful investment experiences are based upon picking the right combination of investments. Investing in an appropriate mix of asset classes is the key to our strategy. Asset allocation seeks to reap the rewards of investing while managing risk. By spreading investments across asset classes, we strive to reduce your downside exposure to any one area and ensure your participation in the upside potential of other areas.

It is impossible for anyone to accurately and consistently predict which asset class will outperform at any given time. Instead, we emphasize consistency and discipline. That means adhering closely to each account’s carefully established plan for asset allocation and diversification, and seeking investments that can be held for the long term.

Risk managementOur focus on risk management within your portfolio is paramount to the success of your overall investment experience. As such, a portion of each portfolio is designated for risk reduction;allowingtheportfoliomanagerstheopportunitytoallocateawayfromover-valued assets toward those that are more favorably valued. Managing risk serves a dual purposeofincreasingthelong-termreturnsandmitigatingdownsidevolatility.

Managed Account Program 3

4 Managed Account Program

O U R I N V E S T M E N T P R O C E S S

Determine asset allocation

•Research•Selection•Optimization

Select investments

•Focusedonquality and consistency

Construct portfolio

•Implement strategy

Monitor

•Ongoing monitoring of asset classes and investments

Madison Asset Management, LLCemploysacomprehensivescreening process to choose investments for your portfolio. To assure the level of excellence we require, each fund must meet the following criteria:

•Soundobjectives and strategies.

•Consistentandsuperior risk-adjustedperformance.

•Stable,qualityfundfamily characteristics(suchas solid asset growth and fundmanagertenure).

We monitor each investment in your portfolio to make sure it remains in line with expectations. Should an investment manager move away from their stated strategy or the investment deviates from an acceptable performance range, we analyze the situation to find a better alternative.

Because no two investors are alike, there is no single “optimal” asset allocation. Your own personal goals, objectives and risk tolerance will be of primary importance when constructing your portfolio.

Based on careful analysis of many market factors, includinglong-termhistoricaland future expected returns, volatilities and correlations of each asset class, we strategically weight each asset class.

Disciplined and pro-activeTo help balance risk and return and moderate the impact of market fluctuations, we employ a risk management strategy that incorporates the ability to move away from asset classes that do not exhibit attractive risk reward profiles into those that do. We believe this strategy offers the ability to achieve greater expected returns with less price fluctuation and more consistency than that of a less comprehensive approach.


O U R I N V E S T M E N T P R O C E S S

“P a r t i c i p a t e a n d P r o t e c t®” P H I L O S O P H Y

Rebalance portfolio

•Review continuously

Your portfolio mix can change when some asset classes experience higher or lower returns than others. Rebalancing your portfolio may become necessary when there is a significant shift in the weights of asset classes due to market movements. Rebalancing realigns the asset class weightings back to their target allocation. Our focus is on maintaining the right overall mix of assets to best support yourlong-termgoals.

Your choice of investment strategies

Alpha Advantage• Offers portfolios for a range of investment needs including income, capital preservation and various levels of growth

• Emphasizes active fund managers that strive to outperform their benchmark index with higher return and lower risk

• Risk management based on “Participate & Protect®“ philosophy

ETF• Offers portfolios for a range of investment needs including income, capital preservation and various levels of growth

• Usesexchange-tradedfunds(ETFs)designedtocloselytrackthe performance of a market index

• ETFsprovideacost-effectiveandefficientwaytobuilda broadly diversified portfolio

Tax-Sensitive• Offers portfolios for a range of investment needs including capital preservation and conservative to moderate growth

• Usesavarietyofmunicipalbondfunds,tax-managedmutual fundsandETFstobuildatax-efficientportfolio

• Designed for investors in a higher tax bracket or where tax sensitivity is a priority

We strive to build portfolios that

participate as fully as possible in

favorable markets and, more importantly,

protect principal when markets decline.


Developing your managed account

investment program is a simple process,

designed with your needs in mind.

A portfolio that fits youWorking together, you and your financial advisor will discuss your investment goals and complete a risk tolerance questionnaire. Upon completion you will be presented with a proposal showing a portfolio designed to fit your investment goals and tolerance for risk. Your financial advisor will carefully review this proposal with you; making the necessary changes to be sure it is appropriate and aligns with your expectations.

Leave the management to usNow that you’ve identified the investment strategy that fits your needs you can leave the rest to us. Our team of highly experienced investment professionals determines the initial and ongoing asset allocation of your portfolio based upon comprehensive research on asset classes and global economic and market themes. Once the asset allocation strategy is determined, they select proven and aligned fund managers. The asset allocation of your portfolio and the fund managers utilized are monitored daily by our investment team to be sure each is meeting the expectations of our team in helping to achieve your investment goals.

G E T T I N G S T A R T E D

G E T T I N G S T A R T E D

Your portfolio choicesBecause client needs differ, the MEMBERS Managed Account Program offers several different investment portfolios to meet various needs.

Capital preservation portfolios• Income Advantage Suitable for bond investors seeking currentincomeandlong-term preservation of capital.

• CapitalPreservation Suitableforconservative,risk-averse investors seeking current income and limited growth potential with less than 20% invested in stocks and a minimum 80% allocation to bonds.

Moderate portfolios• Conservative Suitable for investors seeking income over growth with a modest appetite for risk allowing up to 35% in stocks and a minimum 65% of the portfolio invested in bonds.

• Moderate Suitable for investors seeking growth and income with a moderate level of risk, this portfolio is expected to maintain a fairly equal blend of stocks and bonds investments.

• ModerateGrowth Suitable for investors seeking growth over income but still interested in dampening volatility in their portfolio with up to 65% in stocks and a minimum 35% in bonds.

Aggressive portfolios• Growth Suitable for investors capable of assuming greater risk to achieve potentially higher return; seeking capital appreciation and minimal income with up to 80% invested in stocks, and limited concern for risk with a minimum 20% allocation to bonds.

• Aggressive Suitable for investors in the accumulationmodewithlonger-term time horizons seeking the potential for significant growth and able to accept greater risk and volatility. This portfolio may invest up to 95% in stocks with a minimum 5% allocation to bonds.

Your financial advisor can provide you with more information on the specific allocations available.



M A N A G I N G Y O U R P O R T F O L I O

We’ll adjust your strategy if your

situation changes

Should your situation change, such as

asignificantchangeinyourlong-term

goals, time horizon or attitude toward risk, a

consultation with your financial advisor is all

that’sneeded.Wewillre-analyzeyourasset

allocation strategy to determine what

changes need to be made.


Online access and reportingYou and your financial advisor receive statements and performancereportsonaregularbasis.Up-to-dateperformance and investment information is available online at any time. Periodically, you’ll meet with your financial advisor to make sure your investment strategy remains aligned with your goals.

We continually monitor your account Successfulinvestingisnotaone-timeevent—it’sanongoing process. Your funds, investment strategy and allocation are actively monitored for you. Any necessary changes will be made quickly and decisively, giving you the peace of mind that comes from knowing your portfolioismonitoredday-inandday-out.

Simple “wrapped fee”You pay no sales charges or loads on any of theinvestmentswithinyourportfolio.Apre-determined fee schedule covers all services, including investment counseling, portfolio management, transaction fees and ongoing account administration. This fee schedule is based on the value of your account. Additional optional services are available and may result in additional fees.

Let’s build an investing partnership that includes you, your financial advisor and the MEMBERS managed account team. You have experienced investment professionals to rely on—you’llhavepeaceofmindknowingyourbest interests are our primary concern.

M A N A G I N G Y O U R P O R T F O L I O


A S O U N D I N V E S T M E N T P L A N

Putting a sound investment plan

together requires a team effort

With years of experience, the managed account investment team is solely focused on providing you with the highest level of portfolio managementexpertise.Youreceiveinstitutional-qualitymoneymanagement, which provides a rigorous, disciplined approach to investing, along with your financial advisor’s personalized investment advice.

Your financial advisor has direct access to the managed account professionalsatMadisonAssetManagement,LLC(“Madison”),adding to our team approach of delivering exceptional advice and service. In addition, your investment team is surrounded by the depth of resources of Madison, a member of the Madison Investment Holdings, Inc. family of companies including Madison Investment Advisors,LLC,thattogethermanagemorethan$15billion1 in assets—assuringyouofourdedicationtoyourinvestmentsuccess.

1 As of September, 2010

C L E A R A N D S I M P L E


Madison Asset Management, LLC550 Science Drive • Madison, WI 53711

019-0068 (1110)


Each portfolio is subject to the risks and expenses of the underlying funds in direct proportion to the allocation of assets among the underlying funds.

Sponsored by Madison Asset Management, LLC. Please refer to the MEMBERS Managed Account Program Disclosure Brochure for more details about the program. Non-deposit investment products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by any financial institution.

innovative investment strategies - cuna mutual...

Documents