Merrill Edge Select™ PortfoliosAs an individual investor, sorting through the multitude of available mutual funds and exchange-traded funds can be overwhelming. Fluctuations in the market, emerging trends and often-conflicting analyses can make the task even more daunting.
With so much to consider, many investors end up making the same common mistakes:
Ᏽ Overreacting to recent market events Ᏽ Chasing top-performing funds Ᏽ Holding on to funds too long Ᏽ Not allocating appropriately
Merrill Lynch® professionals doing the work for youFor a more consistent, measured approach to investing, consider the professionally managed investments of Merrill Edge Select™ Portfolios. As a client, you can invest in a diverse combination of investments that are continually monitored and adjusted when appropriate by Merrill Lynch professionals to seek to address your goals, risk tolerance, liquidity needs, time horizon and shifting market conditions.
Are Not FDIC Insured Are Not Bank Guaranteed May Lose ValueInvestment products:
The value of professionally managed investingContinually shifting market trends cause year-to-year performance fluctuations for every asset class. Merrill Lynch® professionals work to anticipate trends and reallocate accordingly.
This information should not be construed as investment advice. It is presented for information purposes only and is not intended to be either a specific offer by any Merrill Lynch entity to sell or provide, or a specific invitation for a consumer to apply for, any particular retail financial product or service that may be available. The illustration of the annual performance of various asset classes is in relation to one another and does not reflect the performance of any specific investment. Results shown are based on indexes and are illustrative; they assume reinvestment of income and no transaction costs or taxes. Past performance is no guarantee of future results. Diversification and asset allocation do not ensure a profit nor protect against a loss in a declining market. Index sources: Sm Cap Growth–Russell 2000 Growth Index; Sm Cap Value –Russell 2000 Value Index; Lg Cap Growth–Russell 1000 Growth Index; Lg Cap Value–Russell 1000 Value Index; Foreign Stocks–MSCI Europe, Australasia and Far East (EAFE®) Index; Fixed Income–ML Domestic Broad Bond Index; Cash –ML US Treasury 3-Month Index. Indexes are unmanaged. Direct investment cannot be made in an index. Source: Bloomberg.
Large Cap Growth Large Cap Value Foreign Stocks Fixed Income Small Cap Growth Small Cap Value Cash
Bes
tW
orst
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Small Cap Growth48.54%
Small Cap Value
22.25%
Foreign Stocks13.54%
Foreign Stocks26.34%
Large Cap Growth11.81%
Fixed Income6.20%
Large Cap Growth37.21%
Small Cap Growth29.09%
Fixed Income7.80%
Small Cap Value
18.05%
Small Cap Value
46.03%
Foreign Stocks20.25%
Large Cap Value7.05%
Small Cap Value
23.48%
Foreign Stocks11.17%
Cash2.06%
Small Cap Growth34.47%
Small Cap Value
24.50%
Large Cap Growth1.50%
Foreign Stocks17.90%
Foreign Stocks38.59%
Large Cap Value
16.49%
Large Cap Growth5.26%
Large Cap Value
22.25%
Fixed Income7.17%
Small Cap Value
-28.92%
Foreign Stocks31.78%
Large Cap Growth16.71%
Large Cap Value.4%
Large Cap Value17.51%
Large Cap Value
30.03%
Small Cap Growth14.31%
Small Cap Value4.71%
Small Cap Growth13.35%
Small Cap Growth7.05%
Large Cap Value
-36.85%
Small Cap Value
20.58%
Large Cap Value15.51%
Cash.1%
Large Cap Growth15.26%
Large Cap Growth29.75%
Large Cap Growth6.30%
Small Cap Growth4.15%
Large Cap Growth9.07%
Cash5.00%
Large Cap Growth-38.44%
Large Cap Value
19.69%
Foreign Stocks7.75%
Small Cap Growth-2.90%
Small Cap Growth14.59%
Fixed Income4.12%
Fixed Income4.34%
Cash3.07%
Cash4.85%
Large Cap Value-.17%
Small Cap Growth-38.54%
Fixed Income5.24%
Fixed Income6.43%
Small Cap Value-5.50%
Fixed Income4.53%
Cash1.15%
Cash1.33%
Fixed Income2.55%
Fixed Income4.32%
Small Cap Value-9.78%
Foreign Stocks-43.38%
Cash.21%
Cash.13%
Foreign Stocks-11.70%
Cash.11%
Selection ProcessReview and approval by Investment Management & Guidance formal governance structure
Platform recommendation
Ongoing MonitoringRegular monitoring and reevaluation
Status changes
Fund EvaluationUtilizes Eight Factor Model (shown at right)
Utilizes Quantitative and/or qualitative analytical methods
Fund acceptance process
Portfolio management by Merrill Lynch®
Our professional managers and analysts apply a rigorous review of the full universe of Mutual Funds and Exchange Traded Funds (ETFs) to select products for our portfolios.
This continuous process is a key part of the buy, sell, and hold decisions for your assets in a model portfolio.
Team stabilityKey decision makersCompensation
Firm
Methodology Investm
ent R
esul
ts
Resources
Progress
Org
aniz
atio
n
Process
Philosophy
Performance
Port
folio
People
ProductEight FactorModel
RepresentativeConsistent with processPerformance vs. risk
HistoryInvestment vehiclesClient typesPrice
ConstructionRisk management processCharacteristicsConsistent
OwnershipInfrastructure
Breadth of productsClient base
Manager’s beliefsClear game plan
Risk/returnValue added
Clear/understandableData sources
CommunicationRepeatable
Ownership changesAdaptability
GrowthRegulatory issues
Eight factor investment company screening process
Each portfolio is adjusted as markets fluctuate
Ongoing investment managementMerrill Lynch takes the results of its manager research and applies a dynamic portfolio construction process to develop the Merrill Edge Select™ Portfolios.
Consisting of 8–16 mutual funds and ETFs, ten (5 taxable, 5 tax-exempt) portfolios are constructed to meet risk profiles and actively monitored to maintain diversification and react to changing market conditions.*
25%
55%
20%10%
50%
40%
5%
35%60%
5%
25%
70%
5%
15%
80%
Moderately Conservative Moderate Moderately Aggressive AggressiveConservative
Equities Fixed Income Cash
Screened by Merrill Lynch Professionals
(may also include exposure to nontraditional funds, including investments in asset classes such as real estate and commodities, which are liquid investments and classified by Merrill Lynch as alternative investments)
Over 5,000 Mutual Funds*
Over 1,000 Exchange-Traded
Funds*
Narrow fund choicesFund investment styleFund positioning and risks
Breakdown of portfolio risksMacroeconomic risk exposuresSector and industry exposures
Investment and risk objectivesEconomic and market outlook
Asset class expectations
Portfolio performanceShi�s in asset allocationShi�s in fund weightings
Objectivesand Market
Environment
Portfolios withDesired Risk
Characteristics
StrategyBuy List
Monitorand
Manage
* Information is accurate as of 4/2013 and is subject to change.
Put the experience of Merrill Lynch® to work for you 1. Meet with a Merrill Edge Financial Solutions Advisor™ to help determine which
portfolio best fits your goals, risk tolerance, liquidity needs and time horizon.
5.Twice-yearly account review with a Financial Solutions Advisor to make sure your account is on track with your current goals. They’ll also review your asset allocation strategy and go over any changes to your investor profile.
4. Detailed quarterly reports are provided, in addition to the standard monthly statements.
2. The team at Merrill Lynch will review your selection to check your portfolio against your investor profile.
3. Your account is active within a few days of funding, and your selected portfolio will be managed by the team at Merrill Lynch.
Finding the right fit and staying on trackWhen you choose to invest with Merrill Edge Select™ Portfolios, a Merrill Edge Financial Solutions Advisor™
and the team at Merrill Lynch® will work together to help you select the appropriate portfolio for your needs and provide ongoing investment guidance.
Investing isn’t simple, but it can be simplified™
Convenient management and supportYou can always check your current portfolio and performance results at merrilledge.com, where you can log in once and see your Merrill Edge® investment and Bank of America® banking accounts on one page for a complete view of your finances.
Should you ever need assistance or have questions about your investments, the Merrill Edge Advisory Center™ is available to you 24 hours a day, 7 days a week at 1.888.MER.EDGE.
Enroll nowGet started with Merrill Edge Select™ Portfolios with just a $20,000 minimum investment, a competitive 1% annual program fee* that includes execution costs.
Invest with guidance by calling 1.888.MER.EDGE or speaking with your local Financial Solutions Advisor today.
* Program fee includes portfolio management, trading costs and ongoing Financial Solutions Advisor support. Please review the Merrill Edge Advisory Account program ADV brochure for a full description of the services and fees.
1 In addition to the annual program fee, the expenses of the investments will vary based on the specific funds within each portfolio. When possible, institutional class shares are used to minimize expenses.2 As with other investments, mutual funds and ETFs are subject to market conditions and other associated risks. There is no guarantee that any specific fund or
investment strategy will meet its investment objectives.3 Any information presented about tax considerations affecting your financial transactions or arrangements is not intended as tax advice and cannot be relied on to
avoid any tax penalties. Neither Merrill Edge® nor its Financial Solutions Advisors provide tax, accounting or legal advice. You should review any planned financial transactions or arrangements that may have tax, account or legal implications with your personal professional advisor.
4 People portrayed in this brochure are paid models.Banking products are provided by Bank of America, N.A. and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation.Merrill Edge is available through Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S), and consists of the Merrill Edge Advisory Center (investment guidance) and self-directed online investing. The Merrill Edge Selects Portfolios are part of the Merrill Edge Advisory Program and require participation in the program to invest. In addition the Merrill Edge Advisory Program is sponsored by Managed Account Advisors (MAA) a wholly-owned subsidiary of MLPF&S, which acts as an overlay program manager and provides investment advisory services. MLPF&S is a registered broker-dealer, Member SIPC and a wholly owned subsidiary of Bank of America Corporation.Investment products:
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