Trademark Capital Target Retirement Series
A Commitment to Excellence The Trademark Capital Target Retirement Series, a suite of target-date collective investment trusts, brings together the experience, expertise and leadership of two accomplished investment firms— Trademark Capital and Wilshire Associates (“Wilshire®”). These unique target-date solutions draw upon Trademark’s asset management prowess along with Wilshire’s proven glide path methodology. These firms’ strengths come together for the express purpose of helping retirement plan participants prepare for a secure retirement.
Trademark Capital For nearly two decades, Trademark Capital has been steadfast in holding true to its core principles: putting clients’ interests first and delivering quality, goal-oriented solutions. Our team of experienced, credentialed professionals bring their deep investment expertise and disciplined risk management to every portfolio we manage. Trademark has a long tradition of helping plan sponsors and their participants plan for their retirement goals and objectives.
Wilshire Associates Founded in 1972, Wilshire Associates is a leading independent investment consulting and services firm that serves in excess of 600 organizations in over 20 countries, with combined assets exceeding $6 trillion*. Wilshire has more than three decades of experience providing innovative risk analytics, investment consulting and investment solutions to investors worldwide. The Trademark/ Wilshire glide path demonstrates Wilshire’s sophisticated, flexible and institutionallyrooted approach to managing glide paths for retirement investors.
FOR INVESTMENT PROFESSIONAL AND PLAN SPONSOR USE ONLY. Not to be shown or distributed to participants. *Assets are as of December 31, 2009, based on published data in the December 27, 2010 issue of Pension & Investments
Gliding Your Way Through Retirement Powered by Wilshire Associates, the Trademark/Wilshire glide path adjusts a broadly diversified asset mix over time, gradually moving towards a more conservative allocation up to and “through” retirement to life expectancy. The Trademark/Wilshire glide path design takes into account investor behavior assumptions both before and through the target retirement date. Taking both the accumulation and withdrawal phases into consideration provides an increased likelihood of investors having a successful and comfortable retirement while still addressing time horizon, longevity, inflation and liquidity risks.
The Trademark/Wilshire Glide Path: Balancing Risk and Time Horizon Trademark’s target retirement funds are built using a broadly diversified group of asset classes. Allocation 100% 80% 60% 40% 20% 0%
Retirement Age 25
30
35
Young Savers (34 and younger)
U.S. Equities
40
45
50
55
60
65
Mature Accumulators Near-Retirement Transitioners (35-49) (50-65)
Non-U.S. Equities
Alternatives
U.S. Fixed Income
Large Cap Growth
Europe
REITs
U.S. Investment Grade
Large Cap Value
Asia
Commodities
High Yield
Mid Cap Growth
United Kingdom
Mid Cap Value
Japan
Small Cap Growth
Emerging Markets
70
Maturity Age 75
80
85
Age
In-Retirement Harvesters (65+)
Non-U.S. Fixed Income
Cash Equivalents
TIPs
Small Cap Value
At age 65, the target retirement date, the maximum equity exposure is 55%. At age 85, the target maturity date, the maximum equity exposure is 15%, which represents the smallest allocation to equities along the glide path. FOR INVESTMENT PROFESSIONAL AND PLAN SPONSOR USE ONLY. Not to be shown or distributed to participants.
Insight and Innovation Our unwavering objective is to provide plan sponsors and participants with a sound investment strategy and disciplined risk management process to create the optimal mix of risk and return. Our philosophy focuses on capturing most of the good times, while avoiding most of the bad times. We strive to deliver that philosophy by employing a disciplined, model-driven investment strategy. The scientific model, which was developed over two decades ago, analyzes up to 18 different quantitative indicators. This methodology provides our portfolio managers clear direction that drives all portfolio adjustments.
Innovative Portfolio Management with Risk Management Overlay Protection What makes Trademark’s target-date solution particularly unique is the Risk Management Overlay, which is applied to the equity portion of the portfolio and is designed to add an additional dimension of safety. While dynamic, the percentage allocated to this proprietary downside protection strategy increases as an investor approaches their retirement age and throughout their golden years. In other words, even though the strategy is flexible and might not be applied to the fullest extent given market conditions, the pre-determined maximum levels of protection increase as the fund and investor age. This approach provides younger investors, with longer time horizons, greater upside potential and nearretirement or retired investors more downside protection at a time when unexpected losses can be devastating. In addition to managing equity downside risk through the Risk Management Overlay strategy, Trademark also actively seeks to protect assets allocated to fixed income by managing duration and sub-asset class allocation. Allocation
Equity
100% 80%
V
60%
o
Risk Management Overlay expands in adverse market conditions
l a
40%
t i l i t y
M
Risk Management Overlay contracts under positive market conditions
20% 0%
Risk Management Overlay
Fixed Income
a
n a
g
e
m
e
n t
Retirement Age 25
30
Young Savers (34 and younger)
35
40
45
50
55
60
65
Mature Accumulators Near-Retirement Transitioners (35-49) (50-65)
70
Maturity Age 75
80
In-Retirement Harvesters (65+)
FOR INVESTMENT PROFESSIONAL AND PLAN SPONSOR USE ONLY. Not to be shown or distributed to participants.
85
Age
Targeting Retirement in a New Way Plan sponsors today are faced with the challenge of choosing the right target-date solution for their participants. This challenge is further pronounced when you consider the vast number of target-date options currently available. While it is important to take into account a target-date fund’s investment objective and glide path methodology, it is also important to understand the fund’s ability to protect participants’ retirement savings during times of market volatility. There are various approaches to target-date fund management, but most target-date funds attempt to mitigate risk through their asset allocation mix and periodic rebalancing. The allocations underpinning most target-date solutions typically don’t adjust during major market downturns; however, the Trademark Capital Target Retirement Series does just that. By applying a dynamic downside protection strategy, the Trademark Capital Target Retirement Series can potentially make a huge difference in the stability of a participant’s retirement portfolio and increase the likelihood of a participant enjoying a secure retirement.
The Trademark Capital Target Retirement Series 100% 45%
Equity
55%
2010 Target Retirement Fund
60%
2020 Target Retirement Fund
69%
2030 Target Retirement Fund
Fixed Income 85%
Risk Management Overlay (on equity portion)
40%
Choosing a One-Step, Managed Solution Selecting the right fund for each participant is easy; just use their birth year. Participant’s Birth Year
Trademark Capital Target * Retirement Fund*
Before 1949
2010
1950 - 1959
2020
1960 - 1969
2030
1970 - 1979
2040
After 1980
2050
*Assumes a retirement age of 65.
48% 31%
24% 17%
83%
2040 Target Retirement Fund
15% 100%
2050 Target Retirement Fund
FOR INVESTMENT PROFESSIONAL AND PLAN SPONSOR USE ONLY. Not to be shown or distributed to participants.
The Trademark Capital Target Retirement Series— A Better Choice Trademark Capital is committed to helping plan sponsors seeking to maximize participant returns, while at the same time actively managing risk. These target-date solutions represent two decades of advanced thinking, innovative risk management and a sound investment strategy. Trademark Capital Target Retirement Funds offer access to: • Wilshire’s proven glide path methodology • Risk Management Overlay, a dynamic downside protection strategy • Broadly diversified portfolios • An experienced portfolio management team with a proven track record • Fee-conscious investment solutions • A firm with a long tradition of putting client interests first • A selection of share classes, providing a suitable option for every plan
Important Information About the Trademark Capital Target Retirement Funds Risks The Trademark Capital Target Retirement Funds are subject to financial market volatility, including equity and fixed income investments in the U.S. and abroad and various asset classes such as small-cap stocks and international stocks may carry additional risks. Different types of investments and/or investment strategies involve varying levels of risk, and there can be no assurance that any specific investment or investment strategy (including the investments purchased and/or investment strategies devised or undertaken by Trademark) will be profitable. Principal invested is not guaranteed at any time, including near, at or after the fund’s target retirement date. As market conditions fluctuate, the investment return and principal value of any investment will change. Asset allocation and diversification do not guarantee a profit or protect against a loss. There are risks involved with investing, including possible loss of principal. Although part of the Fund’s methodology includes the usage of individual securities, in certain circumstances, Trademark may select ExchangeTraded Funds (ETFs) that are representative of the asset class within the Fund’s investment methodology. These circumstances would likely include the initial invest-up period of the Fund, at times when the Fund must invest inflows of cash and when employing hedging strategies. Accordingly, in such instances, the Fund’s investment performance may not match the performance of its investment philosophy. Additionally, Trademark may select other ETFs that invest in certain asset classes when Trademark determines such investment would be beneficial to the Fund in pursuing its investment strategy. Wilshire is a registered service mark of Wilshire Associates Incorporated, Santa Monica, California. All other trade names, trademarks, and/or service marks are the property of their respective holders. Wilshire Funds Management, a business unit of Wilshire Associates, uses mathematical and statistical investment processes to allocate assets, select managers and construct portfolios and funds in ways that seek to outperform their specific benchmarks. Past performance is not an indication of future performance, and processes used may not achieve the desired results. Before investing in any investment portfolio, participants should carefully consider their investment objectives, time horizon, risk tolerance, and fees. Legal Structure The Trademark Capital Target Retirement Series are Collective Investment Funds (CIFs) created by Hand Composite Employee Benefit Trust, and are administered by Hand Benefits & Trust Company (a BPAS company), the trustee. Trademark Capital Management, Inc. is the advisor to the funds. The CIFs are not mutual funds, and shares are not deposits of Hand Benefits & Trust Company or Trademark Capital Management, and are not insured by the Federal Deposit Insurance Corporation or any other agency. The CIFs are securities which have not been registered under the Securities Act of 1933 and are exempt from investment company registration under the Investment Act of 1940. As defined in the Declaration of Trust and Participation Agreement documents, the Funds are available for investment by eligible qualified retirement plan trusts only. THIS BROCHURE AND THE CONTENT HEREIN ARE NOT AND SHOULD NOT BE CONSIDERED A SOLICITATION TO BUY. For more information, contact your Financial Advisor, call Trademark Capital at 1-800-808-8960, or go to www.TrademarkCapital.com. © 2013 Trademark Capital Management, Inc.
www.TrademarkCapital.com info@trademarkcapital.com Toll-free 800-808-8960