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Institutional Quality Investment Process

Our Chief Investment Office (CIO) investment philosophy connects every component of the investment and oversight process, while acting as a fiduciary to support your investment objectives and help you pursue your goals.

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 and Investment Management division.

An institutional quality investment process is the cornerstone from which we deliver our investment philosophy. We leverage the best thinking of the firm, across macroeconomics, quantitative analysis, due diligence, and investment selection.

We believe we have designed a scalable process that allows our best thinking to be personalized to match common investor needs, such as tax sensitivity, investment philosophy, social values, investment minimums, and risk tolerances.

We start with strategic asset allocation and defining appropriate benchmarks for all of our portfolios. This ensures that the long-term experience of investors matches our strategic guidance, which is set annually by our Investment Strategy Committee, based on our long-term market views.

The next steps is we set tactical decision making. The Investment Strategy Committee meets on a monthly basis, and makes recommendations to overweight or underweight asset classes based on current market conditions.

The next step is we select investments. We work in close partnership with our Due Diligence team to identify appropriate managers for our portfolios.

Recently, we enhanced our coverage of available and improved investments through a partnership with Morningstar.

Our Compass process is our proprietary methodology for constructing portfolios. We use a blend of quantitative as well as qualitative factors. What we're looking for is consistency of return through investment selection, versus excess returns being generated through benchmark misfit.

In our hybrid suite of portfolios, we also look at the mix between active versus passive investments. What we’re essentially doing is dynamically making those shifts based on market conditions. When we implement portfolios, we rely on our central trading teams. Essentially, they apply our trade rotation and trade order management strategies so that all clients are traded equitably and fairly.

Finally, we frequently measure and monitor performance, and essentially use our hindsight to shape our foresight.

The best way to get started with investing is really to talk with your advisor. Your advisor could evaluate your overall situation and determine whether a portfolio that is managed by our Chief Investment Office is appropriate for you or a more customized approach makes sense.


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.

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