everbank wealth management, inc. - amazon s3 · everbank wealth management, inc. may recommend or...

EVERBANK WEALTH MANAGEMENT, INC. AN INSTITUTIONAL-CALIBER APPROACH TO GLOBAL, GOAL-DRIVEN INVESTING

Introducing the Managed Currency Portfolios

Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value

EverBank Wealth Management, Inc. is an investment adviser registered with the Securities and Exchange Commission. It is not a bank. EverBank Wealth Management, Inc. may recommend or make available products and services offered by its parent company, EverBank, a member of the FDIC, and EverBank's subsidiary, EverTrade Direct Brokerage, Inc., a broker dealer registered with the Securities and Exchange Commission and a member of FINRA and SIPC. Investment services offered through EverBank Wealth Management, Inc.:

PLEASE REMEMBER: •  All comments and opinions are solely those of the speakers and are not in any way comments or opinions of

EverBank or any affiliates. Additional information is available upon request.

•  Information in this presentation has been obtained from sources believed to be reliable, but the accuracy, completeness and interpretation are not guaranteed and have not been independently verified. Opinions expressed are subject to change without notice and, due to the rapidly changing nature of currency markets, may quickly become outdated

•  The opinions and information presented do not constitute a solicitation for the purchase or sale of any securities or options on securities. The speaker or EverBank may hold positions from time to time in assets discussed during this presentation.

•  EverBank Wealth Management, Inc. is an investment adviser registered with the Securities and Exchange Commission. It is not a bank. EverBank Wealth Management, Inc. may recommend or make available products and services offered by its parent company, EverBank, a member of the FDIC, and EverBank’s subsidiary, EverTrade Direct Brokerage, Inc., a broker dealer registered with the Securities and Exchange Commission and a member of FINRA and SIPC. Investment services offered through EverBank Wealth Management, Inc.: Are Not FDIC Insured, Are Not Bank Guaranteed, May Lose Value.

•  Past performance is not representative of future performance. There are special risks inherent in international investing, including currency, political, social and economic risk. Currencies are highly volatile and can significantly fluctuate in value.

LEGAL DISCLOSURES

AN INSTITUTIONAL-CALIBER APPROACH TO GLOBAL, GOAL DRIVEN INVESTING

EVERBANK WEALTH MANAGEMENT, INC. •  SEC registered investment adviser

•  Subsidiary of EverBank •  Fee only discretionary investment management

•  No commissioned incentives •  Goals based, risk focused, global perspective

•  Unbiased advice

WHO WE ARE


ABOUT WEALTH MANAGEMENT

EverBank Wealth Management, Inc. is an investment advisor registered with the Securities and Exchange Commission. It is not a bank. EverBank Wealth Management, Inc. may recommend or make available products and services offered by its parent company, EverBank, a member of the FDIC, and EverBank’s subsidiary, EverTrade Direct Brokerage, Inc., a broker dealer registered with the Securities and Exchange Commission and a member of FINRA and SIPC. Investment services offered through EverBank Wealth Management, Inc.:



INVESTMENT MANAGEMENT EVOLUTION


International to Global

Index-focused to Opportunity-focus

Return Projecting to Risk Minimizing

•  Geography enhances opportunity •  Global investment strategies rapidly evolving

•  Institutional style •  Goal driven

• Risk is more easily predicted than returns • Focuses on ensuring investors are compensated

for taking risk • Takes advantage of market inefficiencies

EverBank Wealth Management Approach

RISK FOCUS


•  Investing involves risk. • Uncompensated risk should not be accepted. Risk is Relative

• Diversification among traditional assets may not generate anticipated results…even over longer time periods.

• Ask if current levels of risk are being compensated and if there is an opportunity cost for taking risk.

Risk environment is elevated, complex,

changing

• Higher risk does not necessarily mean higher return. • Liquidity and transparency can decrease risk. • No single risk measure will protect all portfolios. • We take a holistic approach to risk management and use a variety

tools to design/monitor investment strategies.

Risk can be monitored, predicted, and evaluated more easily than returns.

• Diversification helps mitigate exposure to market cycles. • Global allocations to traditional and alternative investment

strategies can enhance portfolio performance potential.

Total wealth is maximized by preserving capital.

TRUE GOALS BASED INVESTING THAT STARTS WITH A CONVERSATION • Understand your life aspirations and long-term goals • Discuss your investment philosophy and tolerance for risk • View your total balance sheet, including assets and liabilities • Recalibrate your investment plan accordingly, if your goals or situation changes

INVESTING STARTS WITH YOU


HOLISTIC APPROACH TO RISK MANAGEMENT


Asset Allocation • True diversification

• Risk budgeting used to overlay traditional allocation analysis

Manager Selection • Harness alpha to decrease risk in

inefficient strategies

• Best ideas – Allocation only after extensive due diligence

Monitoring • Evaluate market risk conditions and potential impact on portfolio

• Monitor total portfolio and manager return and risk

performance versus expectations

PORTFOLIO CONSTRUCTION – BUILDING BLOCKS


Building Blocks

Growth Assets Objective: Benefit from global

economic and corporate growth

Strategies: Equities, high yield, long/short equity,

covered call, MLPs, REITs Expected Risk: 10-20% Characteristics: Global

allocations, lower volatility than global equity index, focus on

downside capture

Stable Return Objective: Defensive strategies that include income generation

and low equity-Beta Strategies: Traditional fixed income, unconstrained FI, global macro, diversified

arbitrage Expected Risk: 5-10% Characteristics: Global

allocations, active allocation to mitigate interest, rate and

benchmark risks, low volatility alternative investments

Inflation Protection Objective: Assets that will provide protection against

inflation and provide portfolio diversification

Strategies: TIPS, bank loans, foreign currency, commodities

Expected Risk: 6-15% Characteristics: Global allocations, exposure to

diversified sources of inflation, focus on downside capture

EVERBANK WEALTH MANAGEMENT SOLUTIONS


Diversified Portfolio Solutions

Conservative Moderate

Aggressive

Strategic Portfolio Solutions

Enhanced Yield

Alternative Return

Managed Currency

DIVERSIFIED PORTFOLIO CONSTRUCTION – BALANCED INCOME PORTFOLIO


Actively monitored to incorporate changes in risk environment

Robust Portfolio with Risk incorporated in ALL investment decisions

Strategies in Each Block Based on Goals and Risk Tolerance

Allocations Based on Goals and Risk Tolerance

Exposure to All Building Blocks

Growth Assets

Stable Return

Inflation Protection

Developed International Equity

Emerging Market Equity

High Yield

U.S. debt

Global bonds

Hedged credit

Emerging Market Local

Currency

Unconstrained Fixed

Income

Global Macro

TIPS

Leveraged Loans

Currency Commodities

U.S. Equity

Cash

STRATEGIC PORTFOLIO CONSTRUCTION – ENHANCED YIELD PORTFOLIO


* Although the program is designed to yield 5-6%, there can be no assurances that the EverBank Enhanced Yield portfolio can achieve its target yield. There are a variety of factors that cannot be controlled or influenced by EverBank such as the general level of interest rates, general economic and market conditions all of which could have an impact on the portfolio's yield. **Projected Risk measures the expectation of the degree of variation of investment return around the mean for average return. The expected values are modeled using historic data. Realized risk could be materially higher or lower than the target risk.

Growth Assets

Stable Return

Inflation Protection

Master Limited

Partnerships

Global Bonds

Emerging Market Local

Currency Debt

High Yield

Residential Mortgage-Backed

Securities

Hedged credit

Currencies

Leveraged Loans

Commercial Mortgage-Backed

Securities

Cash

Risk-focused Approach

Liquid & Transparent

Global Diversification

Traditional and Alternative Assets

Projected Risk of 8-9%**

Target Yield between 5-6%*

Diversified Sources of Yield

Income Generation in a Low Yield Environment

EVERBANK WEALTH MANAGEMENT, INC.

MANAGED CURRENCY PORTFOLIOS

RISKS Currencies are highly volatile and fluctuate in value, sometimes significantly, due to a wide variety of economic, political, and social factors. Circumstances such as government restrictions, insurrections, the repudiation of sovereign debt, government printing of currency, economic indicators or other events can abruptly impact the value of a currency, or cause it to cease to exist or be actively traded. There is a risk that a government may impose foreign exchange controls or prohibit transactions in its currency. These exchange controls could prevent a holder from converting the currency to U.S. dollars or determining an exchange rate. Another risk of foreign currencies is that they may not trade on a centralized exchange, and as such the exchange rates could be more susceptible to manipulation. Certain foreign currencies are not deliverable, for example the Chinese renminbi and Indian rupee, meaning that you will not be able to gain physical possession of the foreign currency and will be required to convert the currency to U.S. dollars before gaining access to the funds. It is important that you carefully consider these factors and the potential for currency depreciation along with the rate of interest you may earn when assessing the use of foreign currencies as part of a broadly diversified investment strategy. Investing strategies that are non-correlated to the U.S. dollar carry risk. There can be no assurance that alternative

investments will be profitable and will outperform asset classes that correlate to the U.S. markets. EverBank Wealth Management very strongly recommends that your Managed Currency Portfolio (along with any other foreign currencies you might hold) comprise only a small portion of your total investable assets, with 20% as a maximum. Precious metals markets are volatile and unpredictable. This means the value of precious metals may fluctuate widely. Please refer to EverBank Wealth Management's ADV Part 2 for more information. Past performance is not indicative of future returns, and the value of investments and the income derived from them can go down as well as up. Future returns are not guaranteed and a loss of principal may occur. Diversification strategies do not ensure a profit and do not protect against losses in declining markets. EverBank Wealth Management's portfolio risk management process includes an effort to monitor and manage risk, but should not be confused with (and does not imply) low risk. Asset classes and the proportional weightings in the portfolios may change at any time without notice, subject to the discretion of EverBank Wealth Management.

MANAGED CURRENCY PORTFOLIO


Hedge against U.S. dollar exposure

Portfolio diversification

Actively managed currency exposure

Fundamentally based allocation

Risk-focused allocation

Potential for exposure to

higher growth economic regions

Potential inflation protection

PORTFOLIO HIGHLIGHTS



•  Actively Managed Currency Exposure: Portfolios will be managed to achieve tactical and strategic objectives by adjusting allocations within the diversified currency portfolio based on changes in valuation, market dynamics, economic environment, and geopolitical risks. •  Asset Diversification: Strategy is to create investment returns historically non-correlated to U.S. dollar returns. The portfolio investment universe will include developed and emerging fiat economies based on liquidity, dealer access, and size, as well as modest exposure to precious metals in one portfolio, often viewed as hard currencies. •  Potential for Exposure to Higher Growth Economic Regions: Should provide exposure to currencies in economic regions with greater growth prospects and higher yielding interest rate environments relative to the U.S. sovereign bond market.

MANAGED CURRENCY CLIENT EVALUATION


Economic Fundamentals: Initial Screening

Ranking

Currency Characteristics: Risk Profile

Valuation Assessment Income Attributes

Portfolio Allocation: Fundamental Bias Risk Allocations

Tactical Exposure

•  The Managed Currency Portfolio with Metals is suitable for investors with a greater capacity and tolerance for higher levels of return volatility. It is appropriate for investors focused on non-U.S. dollar exposure, or investors with more than five-year investment horizons.

EverBank Wealth Management has an investment committee that meets monthly to go over seven key data points for currencies we invest in. We look for:

PORTFOLIO FUNDAMENTALS


Low debt-to-GDP ratio

High current account-to-GDP ratio

High cash target

Low inflation

High budget deficit-to-GDP ratio

High real GDP

Low unemployment

Key Data Points

Australian Dollar

Singapore Dollar

Brazilian Real

New Zealand Dollar

Norwegian Krone

Chinese Renminbi

Singapore Dollar

Examples

DEFAULT ALLOCATIONS


RMB, 10%

AUD, 6%

SEK, 9%

MXN, 14%

NOK, 16%SGD, 8%

PLN, 10%

BRL, 8%

Platinum, 10%

Silver, 9%

Portfolio Allocation* (as of July 15, 2013)

*PORTFOLIO IS DISCRETIONARY AND ALLOCATIONS MAY CHANGE ALLOCATIONS CAN BE CUSTOMIZED TO MEET INDIVIDUAL RISK TOLERANCES AND INVESTMENT GOALS

FUNDAMENTAL HOLDINGS

TACTICAL ALLOCATIONS

PRECIOUS METALS

CHINESE RENMINBI


Fundamental Snapshot Debt to GDP 22.9%

CA to GDP 2.6%

Budget Deficit to GDP -1.1%

Real GDP Growth 7.5%

Cash Target 6.0%

Inflation Rate 2.4%

Highlights • Growth Policies & Economic Reform • Controlled Revaluation & Currency Integration • Closely monitor “real” data and social unrest

Technical Snapshot Spot Price 6.14

3-YR STDev 1.92%

Est. Downside Risk -1.45%

SOURCE: BLOOMBERG

*ALL NUMBERS CURRENT AS OF 7/15/13

6.00 6.50 7.00 7.50 8.00 8.50

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3

China Spot 10 Yr

BRAZILIAN REAL



CA to GDP -3.0%



Cash Target 8.5%

Inflation Rate 6.6%

Highlights • Inflation could lead to rate tightening • Commodity play with some rate protection • Closely monitor government intervention

Technical Snapshot

Spot Price 2.22

3-YR STDev 15.35%


SOURCE: BLOOMBERG


1.50 2.00 2.50 3.00 3.50

7/12

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3 12

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Brazilian Real Spot 10 Yr

MEXICAN PESO



CA to GDP -1.3%



Cash Target 4.0%

Inflation Rate 4.5%

Highlights • Growth Policies & Economic Reform • Sustainable and Constant Debt Levels • Positive Current Account Trends


3-YR STDev 13.2%


SOURCE: BLOOMBERG


10.00 11.00 12.00 13.00 14.00 15.00 16.00

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Mexican Peso Spot 10 Yr

NORWEGIAN KRONE


Fundamental Snapshot

Debt to GDP 34.1%

CA to GDP 12.4%

Budget Deficit to GDP 13.9%

Real GDP Growth -2.7%

Cash Target 1.5%

Inflation Rate 2.0%

Highlights

• Rock solid fundamentals • Commodity driven economy – oil revenues • NOT a part of the euro zone


3-YR STDev 13.3%


SOURCE: BLOOMBERG


4.90 5.40 5.90 6.40 6.90 7.40 7.90

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3

Norway Spot 10 Yr

SILVER


Highlights

• Used in many industrial applications • Current gold/silver ratio is approximately 61 • Always has intrinsic value

Technical Snapshot Spot Price $19.96/oz

3-YR STDev 43.4%


SOURCE: BLOOMBERG


6.00 16.00 26.00 36.00 46.00 56.00

7/12

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11/1

4/20

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9/12

/200

3

Silver - Spot 10 Year

EVERTRADE DIRECT BROKERAGE, INC.


EverTrade Direct Brokerage, Inc. is a subsidiary of EverBank and a member of FINRA and SIPC.

Investments offered through EverTrade Direct Brokerage:

Are Not FDIC Insured | Are not Bank Guaranteed | May Lose Value

•  Gain access to the local currency of over 25 foreign markets — from Australia to the United Kingdom

•  Take instant advantage of global markets through our real-time trading platform

•  Trade online or through a broker — you decide

DIVERSIFY THE WAY THAT WORKS BEST FOR YOU • Foreign exchanges & world bonds • Mutual funds • Stocks, options & ETFs

EVERBANK WEALTH MANAGEMENT, INC. IT ALL STARTS WITH A CONVERSATION

EverBankWealthManagement.com 877.613.EVER


EverBank Wealth Management, Inc. is an investment adviser registered with the Securities and Exchange Commission. It is not a bank. EverBank Wealth Management, Inc. may recommend or make available products and services offered by its parent company, EverBank, a member of the FDIC, and EverBank's subsidiary, EverTrade Direct Brokerage, Inc., a broker dealer registered with the Securities and Exchange Commission and a member of FINRA and SIPC. Investment services offered through EverBank Wealth Management, Inc.:

everbank wealth management, inc. - amazon s3 · everbank wealth management, inc. may recommend or...

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