wealth management - bancorpsouth/media/bancorpcom/asset... · 2016-02-25 · strategy foundation...

INVESTMENT STRATEGYOVERVIEW REPORT

Wealth ManagementBANCORPSOUTH

As of September 30, 2015

Asset Allocation

Economic Analysis

STRATEGY FOUNDATIONWealth Management

Five Pillars of our Investment Philosophy• Th ere is no such thing as a risk-free investment• Know what you own and why you own it• Th e 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• Th ere is no substitute for original investment research

BANCORPSOUTH

Core Competencies

Income Money Managers

Asset Allocators

Manager Evaluators

Asset Allocation Process

Current Events

Market Research

Technical Analysis

Fundamental Analysis

Relative Strength

STRATEGY FOUNDATIONWealth Management

Philosophy

Performance

Process

People

Research Overview

Most Volatile

Least Volatile

Strategy Asset Class Min Neutral Max

Growth StocksBonds

90%0%

100%0%

100%10%

Growth with Income StocksBonds

65%10%

75%25%

90%35%

Balanced StocksBonds

35%35%

50%50%

65%65%

Income with Growth StocksBonds

10%65%

25%75%

35%90%

Income StocksBonds

0%100%

0%100%

15%100%

“To outperform the S&P 500 over a com-plete market cycle”

“To be competitive against the Barclay’s Aggregate over a com-plete market cycle”

StocksObjectives

Bonds

Strategy Guidelines

BANCORPSOUTH

Disclaimer : Th e foregoing is for general information only. No guarantee is made as to its accuracy or completeness. BancorpSouth Bank and its af-fi liates 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.

Report Date: As of 9/30/2015

Monthly Fact Sheet

Calendar Year Returns

Data Point: Return

YTD 2014 2013 2012 2011 2010

Growth ETF

Growth with Income ETF

Balanced ETF

-5.89 8.10 27.18 16.99 -2.66 17.92

-4.33 7.22 19.98 14.23 -0.65 16.02

-2.57 6.53 12.57 11.31 1.48 13.69

Risk-Reward

Time Period: 1/1/2007 to 9/30/2015

Ret

urn

Std Dev

0 3 6 9 12 15 18 21

0

1

2

3

4

5

6

Growth ETF Growth with Income ETF Balanced ETF

Characteristics

InceptionDate

Cash % Stock % Bond % Other %12 MoYield

ExpenseRatio

StockStyleBox

BondStyleBox

Growth ETF


Balanced ETF 1/1/2007 5.51 47.98 46.35 0.16 2.24 0.12 È È

1/1/2007 3.28 72.78 23.73 0.21 2.31 0.14 È È

1/1/2007 1.85 95.85 2.05 0.24 2.31 0.16 È Ê

Trailing Returns

As of Date: 9/30/2015 Data Point: Return

YTD 1 Year 3 Years 5 Years 10 Years 15 Years

Growth ETF


Balanced ETF

-5.89 -3.46 9.90 10.39

-4.33 -2.19 7.80 8.75

-2.57 -0.60 5.71 7.01

Strategy Snapshots

Source: Morningstar Direct


Monthly Fact Sheet

Strategy: Growth ETF Calculation Benchmark: MSCI ACWI NR USDMorgan Stanley Capital International All Country World Index

Investment Objective

Por�olio seeks long‐term capital growth over the full market cycle.

Investment Strategy Team

Jerry Hoeniges, CFAJason Hawkins, CFA, CPA(Inac�ve)Wes ThomasAnderson Garro�, CFP®Logan Barnes

Portfolio Chracteristics

12 Mo Yield

Net Expense Ratio

# of Funds

Inception Date

2.31

0.16

6

1/1/2007

Volatility Potential - High

Bonds Style Box

Portfolio Date: 9/30/2015Morningstar Fixed Income Style Box™H

igh

Med

Low

Ltd Mod Ext

Fixed-Income StatsAverage Eff Duration 0.1Average Eff Maturity -Average Coupon 0.8Average Price -Average Credit Quality A

Regional Allocation

Portfolio Date: 9/30/2015

%Cash 1.9US Equity 73.3Non-US Equity 22.6US Bond 1.2Non-US Bond 0.9Other 0.2Total 100.0

Strategy Asset Allocation


%Stock 95.8Bond 2.1Cash 1.9Other 0.2Total 100.0

Stocks Style Box

Portfolio Date: 9/30/2015Morningstar Equity Style Box™

Large

Mid

Sm

all

Value Blend Growth

Equity Style %

Equity Style Value 33.5

Equity Style Core 33.9

Equity Style Growth 32.6

Trailing Returns

As of Date: 9/30/2015 Data Point: Return Calculation Benchmark: MSCI ACWI NR USD

YTD 1 Year 3 Years 5 Years 7 YearsGrowth ETFS&P 500 TR USDRussell Mid Cap TR USDRussell 2000 TR USDMSCI EAFE NR USDMSCI ACWI Ex USA NR USDBarclays US Agg Bond TR USDBarclays US Govt Interm TR USDBarclays US Corp IG TR USDMSCI ACWI NR USD

-5.29-5.84-7.73-5.28-8.631.132.03

-0.10-7.04

-0.61-0.251.25

-8.66-12.16

2.943.001.66

-6.66

12.4013.9111.025.632.341.711.102.236.95

13.3413.4011.733.981.823.101.884.326.82

9.7511.388.633.773.204.853.107.776.03

-5.89 -3.46 9.90 10.39 8.34

Risk-Reward

Time Period: 10/1/2008 to 9/30/2015

Calculation Benchmark: MSCI ACWI NR USD

Ret

urn

Std Dev

0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0Growth ETFS&P 500 TR USDRussell Mid Cap TR USDRussell 2000 TR USDMSCI EAFE NR USDMSCI ACWI Ex USA NR USDBarclays US Agg Bond TR USDBarclays US Govt Interm TR USDBarclays US Corp IG TR USDMSCI ACWI NR USD



Monthly Fact Sheet

Strategy: Growth with Income ETF Calculation Benchmark: Growth with Income World Index75% MSCI ACWI, 25% Barclays Aggregate Bond


Portfolio seeks total return by emphasizing on long-term capital growth with income generation as a secondary factor over the full market cycle.




12 Mo Yield

Net Expense Ratio

# of Funds

Inception Date

2.31

0.14

7

1/1/2007

Volatility Potential - Above Average

Bonds Style Box


igh

Med

Low

Ltd Mod Ext

Fixed-Income StatsAverage Eff Duration 5.1Average Eff Maturity 7.9Average Coupon 3.0Average Price -Average Credit Quality AA

Regional Allocation






Stocks Style Box


Morningstar Equity Style Box™

Large

Mid

Sm

all

Value Blend Growth

Equity Style %




Trailing Returns

As of Date: 9/30/2015 Data Point: Return Calculation Benchmark: Growth with Income World Index

YTD 1 Year 3 Years 5 Years 7 YearsGrowth with Income ETFS&P 500 TR USDRussell Mid Cap TR USDRussell 2000 TR USDMSCI EAFE NR USDMSCI ACWI Ex USA NR USDBarclays US Agg Bond TR USDBarclays US Govt Interm TR USDBarclays US Corp IG TR USDGrowth with Income World Index

-0.10 1.66 2.23 4.32 7.77

-5.28-8.631.132.03

-8.66-12.16

2.943.00

5.632.341.711.10

3.981.823.101.88

3.773.204.853.10

-4.94 -4.22 5.72 6.06 6.06

-5.29-5.84-7.73

-0.61-0.251.25

12.4013.9111.02

13.3413.4011.73

9.7511.388.63

-4.33 -2.19 7.80 8.75 7.61

Risk-Reward

Time Period: 10/1/2008 to 9/30/2015

Calculation Benchmark: Growth with Income World Index

Ret

urn

Std Dev

0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0Growth with Income ETFS&P 500 TR USDRussell Mid Cap TR USDRussell 2000 TR USDMSCI EAFE NR USDMSCI ACWI Ex USA NR USDBarclays US Agg Bond TR USDBarclays US Govt Interm TR USDBarclays US Corp IG TR USDGrowth with Income World Index



Monthly Fact Sheet

Strategy: Balanced ETF Calculation Benchmark: Balanced World Index50% MSCI ACWI, 50% Barclays Aggregate Bond


Por�olio seeks total return through long‐term capital growth and sustainable level of income genera�on over the full market cycle.




12 Mo Yield

Net Expense Ratio

# of Funds

Inception Date

2.24

0.12

7

1/1/2007

Volatility Potential - Average

Bonds Style Box


igh

Med

Low

Ltd Mod Ext

Fixed-Income StatsAverage Eff Duration 5.1Average Eff Maturity 7.9Average Coupon 3.0Average Price -Average Credit Quality AA

Regional Allocation






Stocks Style Box


Morningstar Equity Style Box™

Large

Mid

Sm

all

Value Blend Growth

Equity Style %




Trailing Returns

As of Date: 9/30/2015 Data Point: Return Calculation Benchmark: Balanced World Index

YTD 1 Year 3 Years 5 Years 7 YearsBalanced ETFS&P 500 TR USDRussell Mid Cap TR USDRussell 2000 TR USDMSCI EAFE NR USDMSCI ACWI Ex USA NR USDBarclays US Agg Bond TR USDBarclays US Govt Interm TR USDBarclays US Corp IG TR USDBalanced World Index

-8.63

-0.10

1.13-12.16

2.032.943.001.66

2.341.711.102.23

1.823.101.884.32

3.204.853.107.77

-5.29-5.84-7.73-5.28

-0.61-0.251.25

-8.66

12.4013.9111.025.63

13.3413.4011.733.98

9.7511.388.633.77

-2.88 -1.80 4.43 5.19 5.86

-2.57 -0.60 5.71 7.01 6.75

Risk-Reward

Time Period: 10/1/2008 to 9/30/2015

Calculation Benchmark: Balanced World Index

Ret

urn

Std Dev

0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0Balanced ETFS&P 500 TR USDRussell Mid Cap TR USDRussell 2000 TR USDMSCI EAFE NR USDMSCI ACWI Ex USA NR USDBarclays US Agg Bond TR USDBarclays US Govt Interm TR USDBarclays US Corp IG TR USDBalanced World Index


DISCL AIMERSWealth ManagementBANCORPSOUTH

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 composi-tion of the Strategy. Rebalancing typically occurs semi-annually, but may occur more frequently. Th e 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. Th ere-fore, 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. Th e information received from both Morningstar and Zephyr is believed to be accurate and com-plete. 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 aff ect 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 connec-tion with assets invested in these Asset Allocation Strategies. Th ose fees are generally referred to as “Revenue Sharing.” BancorpSouth will accept such fees from the funds that off er 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. Th e 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 Rev-enue Sharing fee of fi ft een (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.

Th is 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.

* Th e 12-Month Yield is the return generated by interest and dividends realized by the component funds over the previous 12-monthperiod, as a percentage of the latest Net Asset Value of each of the funds.

** Th e 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. Th e exceptions to this are the Growth Strategy and Income Strategy retaining their past performance.

****Graphics and Defi nitions were obtained by using Morningstar and fi 360.

wealth management - bancorpsouth/media/bancorpcom/asset... · 2016-02-25 · strategy foundation...

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