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The Investment Philosophy Behind Client Portfolios

Our investment approach takes into consideration the market cycle to help ensure we are taking on proper risk exposure, and we conduct monthly evaluations to course-correct between the slower moving annual strategic asset allocation process. This approach enables us to be responsive to, and take advantage of, short-term opportunities that move markets.

Tactical Asset Allocation - Long-Term Focus, Short-Term Opportunities

Please see important information at the end of this program. Video recorded on October 13, 2017.

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

Our goal is really to provide actionable insights so that we can manage assets as fiduciaries for our clients. That's really the overarching objective for the Chief Investment Office.

Our investment approach allows us to combine our short, medium, and long‑term views so that investors' portfolios can maintain a long‑term focus while still pursuing short‑term opportunities.

The first‑time horizon is going to be our longer‑term views about the markets, which lead to capital market assumptions and our strategic asset allocation models that our advisors use out in the field.

Over the next 20 to 30 years, we do expect capital will move from the areas that are growing slower to the areas that are growing faster.

As the markets evolve, investors should really have a process in place for annual evaluations. They should evaluate their portfolios relative to where the opportunities are, and make adjustments, and not set it and forget it.

We also take a medium‑term or market‑cycle view. Essentially, what we look at is where are we in the economic cycle?

We think we've passed the mid‑cycle slowdown. This is the time where, if you don't expect recession, you could actually afford to take a little bit more risk until the back half.

Then we have a shorter term view. We meet every single month and we look at things like GDP growth, inflation, earnings, liquidity in the markets, and we develop views about is this an opportunity to rebalance to either reduce risk or take on risk? And that’s our tactical views.

Our investment philosophy and market views are supported by a dedicated team of professionals that allow our advisors to apply and customize our investment framework for their clients.

No single investment approach satisfies the needs of all investors. There is no one size fits all.


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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