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Implementing Your Personal Investment Philosophy With Chief Investment Office (CIO) Portfolios

Our investment process incorporates diversification of multiple asset classes and asset class investments to potentially reduce portfolio volatility, and provide flexibility that helps you pursue your financial goals over time and through changing market environments.

Please see important information at the end of this program. Video recorded on December 1, 2017.

I'm Joe Curtin. I head up the Global Portfolio Solutions Group within the Chief Investment Office of Bank of America's Global Wealth & Investment Management division.

We do not espouse a one size fits all investment philosophy. Our investment process is designed around the unique circumstances of the individuals, families, and institutions that we service.

That's why we've built a framework that allows investors to take our best thinking -- including market insights, quantitative analysis, and due diligence -- and tailor it to their unique needs and priorities.

And no matter which portfolios they choose, they benefit from the views of the firm's investment strategy committee, long-term strategic asset allocation process, and annual reviews.

We've designed our framework around four basic principles. The first of those principles is really selecting the right allocation profile, which represents the blend between risk and return that is necessary to meet their goals.

A total portfolio can exist as a stand-alone portfolio and represents our diversified, multi-asset class allocation profile based on risk and return trade-offs.

A completion portfolio can exist as a stand-alone portfolio where more than one completion portfolio can be used to implement an investor's custom, goals-based asset allocation. These are diversified portfolios of specific asset classes such as equities or fixed income.

An investor's investment philosophy is an important consideration in building portfolios. So if a client is passively minded, we’ve designed a passive suite of portfolios that balanced reduced expenses as well as tight tracking error relative to market-based benchmarks.

Our active suite of portfolios seek to outperform the appropriate strategic asset allocation benchmark but are also designed to benefit from our investment selection decisions.

Our hybrid suite of portfolios are implemented using both active and passive investment vehicles, and will dynamically tilt depending on the market environment.

Investment minimums are an important consideration as well. For lower minimum portfolios, we will probably use mostly exchange traded funds to keep the investment minimum low, as well as the expenses low.

For higher minimum portfolios, we will expand the offering set to include mutual funds and separately managed accounts.

Finally, tax sensitivity is also important. So for investors who are in a higher tax bracket, we may utilize investments that have a higher allocation to municipal bonds, which may be exempt from federal, state, and/or local income taxes.

To get started, a conversation with one of our advisors is the first crucial step.

Our advisors can determine whether a CIO managed portfolio is appropriate for their situation, or a more customized approach may be more appropriate to accommodate special circumstances that may be unique to them personally.

1st Disclosure Screen:

Important Information:

Investing involves risk, including loss of principal.

The opinions expressed are those of the Global Wealth & Investment Management Chief Investment Office (GWIM CIO) only and are subject to change. While some of the information included draws upon research published by BofA Merrill Lynch Global Research, this information is neither reviewed nor approved by BofA Merrill Lynch Global Research. This information and any discussion should not be construed as a personalized and individual recommendation, which should be based on your investment objectives, risk tolerance, and financial situation and needs. This information and any discussion also is not intended as a specific offer by Merrill Lynch, U.S. Trust, their affiliates, or any related entity to sell or provide, or a specific invitation for a consumer to apply for, any particular retail financial product or service. Investments and opinions are subject to change due to market conditions and the opinions and guidance may not be profitable or realized. Any information presented in connection with BofA Merrill Lynch Global Research is general in nature and is not intended to provide personal investment advice.

The information does not take into account the specific investment objectives, financial situation and particular needs of any specific person who may receive it. Investors should understand that statements regarding future prospects may not be realized.

Merrill Lynch, U.S. Trust and their affiliates do not provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

No investment program is risk-free, and a systematic investing plan does not ensure a profit or protect against a loss in declining markets. Any investment plan should be subject to periodic review for changes in your individual circumstances, including changes in market conditions and your financial ability to continue purchases. Asset allocation and diversification do not assure a profit or protect against a loss during declining markets.

Some of the risks involved with equities include the possibility that the value of the stocks may fluctuate in response to events specific to the companies or markets, as well as economic, political or social events in the U.S. or abroad. Bonds are subject to interest rate, inflation and credit risks.

Investments in high-yield bonds may be subject to greater market fluctuations and risk of loss of income and principal than securities in higher rated categories. Investments in foreign securities involve special risks, including foreign currency risk and the possibility of substantial volatility due to adverse political, economic or other developments. These risks are magnified for investments made in emerging markets. Investments in a certain industry or sector may pose additional risk due to lack of diversification and sector concentration. Income from investing in municipal bonds is generally exempt from federal and state taxes for residents of the issuing state. While the interest income is tax exempt, any capital gains distributed are taxable to the investor. Income for some investors may be subject to the federal alternative minimum tax (AMT).

Past performance is no guarantee of future results.

Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.

2nd Disclosure Screen

Global Wealth & Investment Management is a division of Bank of America Corporation (“BofA Corp.”). Merrill Lynch Wealth Management, Merrill Edge®, U.S. Trust and Bank of America Merrill Lynch are affiliated sub-divisions within Global Wealth & Investment Management.

Merrill Lynch Wealth Management makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”) and other subsidiaries of BofA Corp. Merrill Edge is available through MLPF&S, and consists of the Merrill Edge Advisory Center (investment guidance) and self-directed online investing.

U.S. Trust, Bank of America Private Wealth Management operates through Bank of America, N.A., and other subsidiaries of BofA Corp.

The Private Banking and Investment Group is a division of MLPF&S that offers a broad array of personalized wealth management products and services. Both brokerage and investment advisory services (including financial planning) are offered by the Group's Private Wealth Advisors through MLPF&S. The nature and degree of advice and assistance provided, the fees charged, and client rights and Merrill Lynch's obligations will differ among these services. The banking, credit and trust services sold by the Group's Private Wealth Advisors are offered by licensed banks and trust companies, including Bank of America, N.A., Member FDIC, and other affiliated banks.

Bank of America Merrill Lynch is a marketing name for the Retirement Services business of BofA Corp.

Banking products are provided by Bank of America, N.A., and affiliated banks, Members FDIC and wholly owned subsidiaries of BofA Corp.

Investment products:

Are Not FDIC Insured    Are Not Bank Guaranteed    May Lose Value  

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