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PMS 2622 PMS 718 50% Blk PMS 390 Introduction CAAP Education · 2017. 1. 18. · PMS 2622 PMS 718...

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  • PMS 2622 PMS 718 50% Blk PMS 390

    CAAP Newsletter2016 Quarter 4

    CAAP EducationCAAP Yardstick

    CAAP At A Glance

    IntroductionCAAP®1 continues to grow as we strive to provide a first-class, state-of-the-art solution for you and your clients. We continue to streamline processes and make enhancements to create a positive overall experience for both you and your clients. Our goal is to provide the best service and offer flexible options to manage your business.

    With this in mind, we are excited to announce the wait for WealthPort® Unified Management Account (UMA) is over. The initial rollout will allow you to diversify between multiple strategists with similar objectives inside a single account with the same registration type. We will offer trainings to explain all the benefits associated with a UMA.

    For more information on additional important CAAP announcements, please see the What’s New section of this newsletter.

    – The CAAP Team

    https://www.cir2.com/Media/CAAP/Newsletter/2016_Quarter4/ManagerYardstick.pdfhttps://www.cir2.com/Media/CAAP/Newsletter/2016_Quarter4/CAAP_At_A_Glance.pdf

  • What’s NewIntroducing the WealthPort Unified Managed Account Cambridge is pleased to invite CAAP advisors to participate in the next evolution of the WealthPort managed account experience. WealthPort UMA can simplify client communications, reduce paperwork, increase efficiency, and enhance the overall client experience. Click here to learn how you can utilize the UMA to work for you and your CAAP clients.

    New Clearinghouse OptionsWe are pleased to announce new clearinghouse options for three of our current strategists. Beginning January 20, 2017, both NFS and Pershing will be available for J.P. Morgan, Loring Ward, and Symmetry Partners. We received many requests to open up the options for these strategists and we listened.

    CAAP Conversion Tax DocumentsCambridge completed the CAAP prefix conversion for Pershing and NFS in 2016. As a result of this conversion, clients will receive two sets of tax documents during the 2017 tax season.

    One set of tax documents will be for the activity (sales, proceeds, dividends, etc.) that occurred prior to the conversion. The other set of documents will be for the new account. Both sets are valid and need to be submitted to clients’ tax advisors for review. More information about the tax documents is below.

    2016 Quarter 4 – CAAP Newsletter | 2

    https://www.cir2.com/Media/Videos/Edited%20UMA%20Webinar.mp4

  • Pershing• 1099 mailing: Two separate tax documents will be mailed mid-February. If enrolled in

    eDelivery, the tax documents will be available online for the new account only. Pershing will mail a hard copy of the tax document for the old account.

    • 1099R mailing: Two separate tax documents will be mailed the last week of January. If enrolled in eDelivery, the tax documents will be available online for the new account only. Pershing will mail a hard copy of the tax document for the old account.

    NFS• 1099 mailing: Two separate tax documents will be mailed mid-February. If enrolled

    in eDelivery for tax documents, both the new and old account 1099 will be available online only.

    • 1099R mailing: Two separate tax documents will be mailed the last week of January. If enrolled in eDelivery for tax documents, both the new and old account 1099R will be available online only.

    CAAP Annual RebalanceBeginning January 4, 2017, CAAP accounts invested in Symmetry and Loring Ward models held at NFS and Pershing will be reviewed against their assigned model to determine if a position is significantly out of balance. CAAP accounts invested in all other models will be rebalanced beginning February 2, 2017.

    CAAP 403(b)(7) Program DiscontinuingEffective January 31, 2017, the 403(b)(7) and IRA programs at BMO Harris in CAAP will be discontinued. Cambridge is no longer accepting new accounts. Cambridge will no longer be providing investment management options. Participant accounts that meet CAAP strategist account minimums have the option of moving the account to NFS or Pershing. Other options include selecting an investment option available from the plan sponsor, taking a distribution, or keeping the account at BMO. BMO has transition recordkeeping services to OneAmerica, BMO continues to be the custodian. Rep-advisors will need to work directly with OneAmerica for servicing the account if it remains at BMO Harris.

    Trade TicketsIn order to better serve our rep-advisors in a timely and accurate fashion, we are moving to receiving trade requests exclusively as Service Tickets. We realize it isn’t always an option to submit a Service Ticket, for example, when you are out of the office and receive a client call. In these emergency situations, we will still process trades as best we can. However, we are better able to respond to requests received via Service Tickets.

    2016 Quarter 4 – CAAP Newsletter | 3

  • Upcoming EventsMark your calendars for these events offered by Cambridge and the CAAP Team! The details about these events can be found on www.cir2.com>Education & Events>Events.

    CAAP Camp (Invitation Only)New Orleans, LA I January 29-31, 2017

    2017 Ignite ConferenceDallas, TX I September 13-16, 2017

    2016 Quarter 4 – CAAP Newsletter | 4

    CAAPME Form SubmissionWhen you submit a CAAP Strategy Election Form (CAAPME) to change the strategist or model on an existing CAAP account, you do not need to submit the CAAPME Form for a 24 Principal to review and release. Submit the CAAPME Form under an 1800 trade key number. Then the form will bypass 24 Review and go straight to CAAP Trading to process the trades.

    https://www.cir2.com/Internal/Education--Training/Conferences-Workshops--Events/

  • StrategistCommentariesFEG

    Greenrock Research

    J.P. Morgan

    Litman Gregory

    Loring Ward

    Morningstar

    Rogerscasey

    Russell Investments

    Symmetry Partners

    The Institute for Wealth Management

    Vanguard

    Strategist SPOTLIGHT

    Learn more about CAAP and the available strategists.

    Visit our CAAP home page or CAAP Academy (log in via Cambridge Knowledge Center). Your www.cir2.com login is required to access these pages.

    Request a CAAP Training!

    2016 Quarter 4 – CAAP Newsletter | 5

    https://www.cir2.com/Media/CAAP/Newsletter/2016_Quarter4/Commentary/FEG_Commentary.pdfhttps://www.cir2.com/Media/CAAP/Newsletter/2016_Quarter4/Commentary/Greenrock_Commentary.pdfhttps://www.cir2.com/Media/CAAP/Newsletter/2016_Quarter4/Commentary/JP_Morgan_Commentary.pdfhttps://www.cir2.com/Media/CAAP/Newsletter/2016_Quarter4/Commentary/Litman_Gregory_Commentary.pdfhttps://www.cir2.com/Media/CAAP/Newsletter/2016_Quarter4/Commentary/Loring_Ward_Commentary.pdfhttps://www.cir2.com/Media/CAAP/Newsletter/2016_Quarter4/Commentary/Morningstar_Commentary.pdfhttps://www.cir2.com/Media/CAAP/Newsletter/2016_Quarter4/Commentary/Rogerscasey_Commentary.pdfhttps://www.cir2.com/Media/CAAP/Newsletter/2016_Quarter4/Commentary/Russell_Commentary.pdfhttps://www.cir2.com/Media/CAAP/Newsletter/2016_Quarter4/Commentary/Symmetry_Commentary.pdfhttps://www.cir2.com/Media/CAAP/Newsletter/2016_Quarter4/Commentary/The_Institute_for_Wealth_Management_Commentary.pdfhttps://www.cir2.com/Media/CAAP/Newsletter/2016_Quarter4/Commentary/Vanguard_Commentary.pdfmailto:amps%40cir2.com?subject=https://www.cir2.com/Media/CAAP/Newsletter/2016_Quarter4/Spotlight/Russell_Spotlight.pdfhttps://www.cir2.com/Media/CAAP/Newsletter/2016_Quarter4/Spotlight/Vanguard_Spotlight.pdfhttps://www.cir2.com/Media/CAAP/Newsletter/2016_Quarter4/Spotlight/Symmetry_Spotlight.pdf

  • reCAAPOctober 2016

    • J.P. Morgan had model updates on October 17, 2016. They have increased their overweight to stocks versus bonds reflecting a greater level of conviction in the cyclical environment. The paths of the U.S. dollar, commodities, and the Fed lead them to believe that the emerging markets rebound can extend further and within equities they’ve increased their allocation to the Emerging Markets Equity and Emerging Economies Funds. They believe carry remains attractive and have increased their overweight to extended credit markets through the High Yield Bond and Emerging Markets Debt (EMD) Funds. Due to their preference for equities and credit they’ve used the Core Bond Fund as a funding source for their reallocations and have also further diversified their core fixed income exposure by adding to Core Plus Bond Fund.

    • Fund Evaluation Group, LLC (FEG) had model updates on October 19, 2016. The changes were made to the FEG Core and Equity Portfolios. These changes were made in order to eliminate real estate investment trusts (REITS) exposure within the portfolios due to declining sentiment and valuation concerns in this asset class.

    November 2016• Six new Vanguard models were added November 1, 2016. The Vanguard Core Series has broad-market equity

    and investment-grade fixed income exposure with more than 19,000 global stocks and bonds. Diversified index investments that can help alleviate active manager risk in portfolios through lower return variability and low turnover. Low costs, with weighted average expense ratios ranging from .08 percent to .10 percent.

    » Account minimum: $5,000

    » Program fee: 50 bps

    » Service fee: $0

    » Clearing: NFS and Pershing

    • CAAP Quarterly Review began November 3, 2016. All CAAP accounts were reviewed. Trades were generated if the account positions had drifted outside a stated variance range. Symmetry Partners, Loring Ward, and Litman Gregory do not participate in the CAAP Quarterly Review.

    • Horizon had model updates were implemented on November 9, 2016. Horizon is adding the First Trust Horizon ETFs to its Hybrid Portfolio models. These ETFs will be used to enhance the risk/return statistics of Horizon’s three types of models: Gain (Allocation), Protect (Risk Assist), and Spend (Real Spend). The ETFs will be most concentrated in the Protect and Spend models, as the client in these models is typically in preservation mode. Horizon is exchanging positions that have historically been more volatile for an active lower volatility option. We believe that clients will be benefited by enhanced risk/return characteristics. In the Gain models, these ETFs make a smaller portion of the overall compared to the Protect and Spend models to continue to drive their risk-adjusted return mandate. Overall, the new recommended portfolios will have a modest tilt to value style investments and remain globally diversified.

    2016 Quarter 4 – CAAP Newsletter | 6

  • 2016 Quarter 4 – CAAP Newsletter | 7

    • Morningstar had model updates for both their Retirement Income Portfolios and Active/Passive Portfolios implemented on November 10, 2016

    » They recently made a number of trades that impacted the Retirement Income Portfolios. Overall, this reallocation reflects their ongoing efforts to strengthen their global investment process and help investors achieve better long-term investment results. As part of this reallocation, they adjusted the portfolios’ positioning to put more capital to work in asset classes where they see the most value and have the highest conviction, while also assessing and confirming the portfolios’ ability to meet their targeted withdrawal mandate based on their valuation-implied return and risk forecasts. They have also made several changes to the portfolios’ underlying holdings.

    » As part of their ongoing asset allocation policy review, they decided to take some steps to reduce risk in the fixed income portion of a few portfolios. They are lowering the overall duration and introducing more short-term credit exposure. Further, they are reducing high-yield bond exposure and reallocating capital to bank loans and investment-grade bonds. High-yield spreads have tightened since their peak in mid-February. As a result, the reward for risk of high-yield bonds has been reduced significantly. Bank loans have experienced less price appreciation in the below investment-grade space, and their valuations still look compelling. They believe this warrants a shift in capital from high-yield bonds to bank loans. The remaining reallocation to investment-grade bonds reflects their desire to marginally de-risk their portfolio as they are increasingly concerned about the elevated asset prices across fixed income and stocks.

    December 2016• J.P. Morgan had model updates that were implemented on December 5, 2016. The U.S. remains their preferred

    regional exposure, supported by prospects for pro-cyclical fiscal policy and higher rates benefiting the financial sector. They shifted to an overweight position in domestic small cap equity, funded by a reduction in their overweight to U.S. large cap equity, to increase cyclical exposure. Within fixed income, a modest overweight position to EMD is removed given the headwinds that emerging markets may be faced with, such as a rising U.S. dollar, higher U.S. interest rates and the potential for a protectionism policy stance from the newly elected administration. Proceeds from the reduction in EMD will be allocated to the Short Duration Bond Fund in certain risk profiles to reduce overall duration from the existing domestic fixed income exposure.

    • Weatherstone Capital Management announced the merge of two models on December 22, 2016. The Weatherstone Capital Management Global Multi-asset model is being discontinued as an investment option. Weatherstone Capital Management and Cambridge will continue managing the Global Multi-asset model for clients through January 31, 2017. On February 1, 2017, any existing clients invested in the model will be reallocated to the Balanced Growth model.

    For more details on a specific strategist event, please see the CAAP bulletins posted on www.cir2.com>Communications from Cambridge>Bulletins>CAAP.

    Communications from Cambridge - BulletinsBulletins, sent every Thursday morning, are communications from the home office updating you on important information from the following areas: CAAP, Cambridge Source, CLIC®, Home Office, NFS, Pershing, Practice Management, Product Services, Retirement Center, Trading, and Wealth Planning Resources.

    https://www.cir2.com/Internal/Communications-from-Cambridge/Bulletins/CAAP/

  • THE CAMBRIDGE ASSET ALLOCATION PLATFORM (CAAP) ALLOWS YOU ACCESS TO THE BENEFITS OF ACCOUNTS MANAGED BY SOME OF THE WORLD’S LEADING INVESTMENT PROFESSIONALS. USING A TIME-TESTED PROGRAM OF WEALTH ACCUMULATION AND ASSET MANAGEMENT.

    Need further assistance or want to share a suggestion?Contact Barb Pilcher, Senior Director, Fiduciary Services ([email protected]) or Colleen Bell, First Vice President, Fiduciary Services ([email protected]).

    Need an unbiased opinion on a strategist?Contact Laura Papera, Director of Fee-based Marketing ([email protected]) at 877-254-2071.

    For questions about opening an account or to share your success story, please contact the CAAP Team ([email protected]) at 844-331-5759.

    For trade-related questions and requests, please contact CAAP Trading ([email protected]) at 800-777-6080.

    PMS 2622 PMS 718 50% Blk PMS 390

    Cambridge Investment Research, Inc. | 1776 Pleasant Plain Road | Fairfield, Iowa 52556 | www.cir2.com

    1CAAP® is a registered mark of Cambridge Investment Research, Inc. for its program for investment managers. Securities offered through Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC and Investment Advisory Services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Both are wholly-owned subsidiaries of Cambridge Investment Group, Inc. For financial professional use only V.CIR.0117

    mailto:[email protected]:colleen.bell%40cir2.com?subject=mailto:laura.papera%40cir2.com?subject=mailto:caap%40cir2.com?subject=mailto:caaptrading%40cir2.com?subject=http://www.cir2.com
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CAAP Newsletter 2016 Quarter 4 CAAP Education CAAP Yardstick CAAP At A Glance Introduction CAAP® 1 continues to grow as we strive to provide a first-class, state-of-the-art solution for you and your clients. We continue to streamline processes and make enhancements to create a positive overall experience for both you and your clients. Our goal is to provide the best service and offer flexible options to manage your business. With this in mind, we are excited to announce the wait for WealthPort® Unified Management Account (UMA) is over. The initial rollout will allow you to diversify between multiple strategists with similar objectives inside a single account with the same registration type. We will offer trainings to explain all the benefits associated with a UMA. For more information on additional important CAAP announcements, please see the What’s New section of this newsletter. – The CAAP Team
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