Jason Norris, CFA, executive vice president of research for Ferguson Wellman, is a guest blogger for Oregon Business. This month, Norris shares his views on technology. From a milestone anniversary for the World Wide Web to social media IPOs, Norris shares how technology has evolved and how history can repeat itself. Click here to review the complete posting.
Marc Fovinci Quoted in Bloomberg News
Treasuries Hold Losses as Ukraine Tension Eases Before Jobs Data By Kevin Buckland and Mariko Ishikawa
The yield on benchmark 10-year Treasuries maintained the biggest gain since November amid speculation the crisis in Ukraine will ease, and before U.S. data this week forecast to show employers stepped up hiring.
Australian and Japanese government bonds retreated after Russian President Vladimir Putin said yesterday that there’s no immediate need to invade eastern Ukraine, limiting demand for havens. Treasury 10-year yields rebounded from a one-month low, surging back above their 200-day moving average after dipping below the mark this week for the first time since May.
“If the Ukraine situation de-escalates further, we should see higher rates, and that’s what we’re expecting,” said Marc Fovinci, head of fixed income in Portland, Oregon, at Ferguson Wellman Capital Management Inc., which has $3.5 billion in assets. “There’s still a risk-aversion premium in Treasuries.”
The U.S. 10-year yield was little changed at 2.69 percent as of 6:51 a.m. in London from yesterday, when it rose 0.1 percentage point, according to Bloomberg Bond Trader prices. The 2.75 percent note due February 2024 traded at 100 17/32.
Yesterday’s jump in 10-year yields was the biggest on a closing basis since Nov. 8. They touched 2.59 percent on March 3, the lowest since Feb. 4. A break above 2.7 percent would “mark a near-term yield base,” Credit Suisse Group AG analysts David Sneddon and Christopher Hine wrote in research today.
Australia’s 10-year government bond yields rose for a second day, climbing six basis points to 4.06 percent after the nation’s economy expanded faster than estimated. Japan’s 10-year benchmark yield rose one basis point to 0.61 percent.
Crimea Crisis
Russia would use the military only in “an extreme case,” Putin said in a press conference yesterday, signaling the crisis that provoked a standoff with the West and roiled global markets won’t immediately escalate.
Russian intervention in Crimea, which the U.S. condemned as a breach of Ukraine’s sovereignty, sparked demand for bonds of developed countries from the U.S. to Japan for their perceived safety, overshadowing the prospect of higher yields as the U.S. recovery gathers pace.
Treasuries are on track for their best quarter since the three months that ended in June 2012 after turmoil in emerging markets from Argentina to Turkey spurred demand for haven assets. The Bloomberg U.S. Treasury Bond Index (BUSY) has gained 1.8 percent since the end of last year.
U.S. Jobs
U.S. employers hired 150,000 workers in February, after adding 113,000 in January, according to a Bloomberg News survey before the Labor Department releases the figures on March 7. A report from ADP Research Institute today will show companies boosted payrolls by 155,000 last month after an increase of 175,000 in January, a separate Bloomberg poll estimates.
Employment gains for December and January were both less than economists forecast, depressed by winter storms.
“There’ll be some pretty severe weather impact on payrolls, making it another month of hard to interpret numbers,” said Ferguson Wellman’s Fovinci. “There are no roadblocks in the way of economic growth that we’ve seen.”
Federal Reserve Chair Janet Yellen reiterated on Feb. 27 that the central bank is likely to keep curtailing its stimulus. The central bank said on Dec. 18 it would trim its monthly bond purchases to $75 billion from $85 billion, before cutting by another $10 billion in January. The purchases are designed to hold down long-term borrowing costs and spur economic growth.
Spreading the Wealth: Article on Ferguson Wellman in Oregon Business Magazine
Oregon Business Magazine Spreading the Wealth
February 25, 2014
By Paige Parker
A high bar to clear. Until last year, investors seeking the expertise of Portland firm Ferguson Wellman Capital Management needed to bring at least $2 million along with them. The 39-year-old wealth management firm lavishes personal attention on its clients. Some families have trusted Ferguson Wellman with their money through three generations. And its employees are far from fickle: Not a single investment professional hired in the last 25 years has left Ferguson Wellman for another job, says CEO James Rudd. The firm closed out 2012 with just shy of 600 individual and institutional clients and $2.91 billion in assets under management. “We’re not a hot-dot manager,” Rudd says.
Creating growth, controlling growth. Market research told the employee-owned firm that the time had come to pursue less wealthy investors. Assuming it would attract younger investors, Ferguson Wellman this summer added two employees and launched West Bearing Investments, a division for Oregon, Washington and California clients with at least $750,000 to invest. West Bearing clients have access to the same investments as Ferguson Wellman clients, as well as direct access to the analysts who create those investments.
The rich get richer. On January 1, the firm raised its minimum for entry into the established Ferguson Wellman division to $3 million. The move doesn’t affect current clients. “I’ve been here 31 years, and this is the fourth time we’ve increased our minimum,” Rudd says. Ferguson Wellman first established a minimum, then $1 million, in 1989. The higher minimum “allows us to continue to be very client centered in what we do and very entrepreneurial,” Rudd says. “Clients are the greatest resource that we have. Believe me, it takes years to form a trusting relationship with a client.”
Surprising results. The 43-employee company ended 2013 with $3.8 billion in assets under management, largely because of the strong performance of the stock market. But it also brought in 52 new clients. Twenty-eight came from the West Bearing division, which hit its goal of $25 million in assets under management.
So has the double-digit growth in Oregon’s software sector brought young, flush investors into the Ferguson Wellman fold? Not yet. The new clients aren’t of the high-tech hoodie set, but rather business owners, entrepreneurs, doctors and those who’ve inherited money. “When it came down to it, in the Northwest — anywhere, for that matter — $750,000 is a great amount of money to be putting into a retirement,” says Mary Faulkner, senior vice president for branding and communications. “Our demographics at West Bearing compared to Ferguson Wellman, they’re essentially the same. It was an exciting discovery for us — how wealth manifests itself in the Northwest.”
Cole Quoted in the Portland Business Journal Regarding Angel Investors
The Portland Business Journal Q&A: Ralph Cole on How New Angels Can Get Their Wings
February 28, 2014
by Malia Spencer
Startups can be risky investments, so for those considering investing in the space there are some critical elements to think about.
What is your risk tolerance? Since the money can be tied up for years, are you comfortable with illiquid investments? And perhaps most importantly, if you can’t afford to lose it all, you probably shouldn’t do it.
Ralph Cole, executive vice president, equity strategy and portfolio management for Ferguson Wellman Capital Management offers some of his insights on how his firm handles questions about this asset class.
How often do clients inquire about this type of investing?
A lot of our clients, if they made their money through their own business, which a lot of our clients did, and if they are involved in the startup community in Portland, they may take the lead themselves. It’s the guy that has never done it, but people know he has money, that comes to us and asks, “What do you think?” It’s not as often as you might think, several times a year at least.
What should people think about if they are exploring this option?
It’s really understanding your motivation for doing it. Are you doing it to help the community here in Oregon or are you doing it to help someone you know or is it just something that interests you. That will make a difference how you view it as an investment.
What kinds of questions should they ask their financial adviser?
Actually, we end up asking the questions and then help them understand the perimeters of the investment. Do you want your exposure to be limited? What slice of the portfolio do you want tied to it and how much more commitment do you have to make if these go south? How involved do you want to be — a lot of angel investment funds want you to be involved.
How much of a portfolio do people look at for this type of investment?
There is no rule of thumb, but it’s what we consider venture capital. The venture slice for us is 2 percent or 3 percent of a portfolio, not much more than that. The more you have the more you can afford to put into it because it is so high risk. It comes down to how much are you willing to lose. This can be the highest returns in the portfolio but it is the most volatile.
With headlines like Facebook’s $19 billion acquisition of WhatsApp and other high profile tech startup stories, is that fueling interest?
This happens at every part of the cycle, you start early out of a recession and people are nervous and wary, but they start to see other investments doing well and start to feel better about the economy and are now willing to look at what else is out there. They see headlines that tech is booming and people want to know how to get in it. But those investments (in high profile deals) were made years ago. The time to think about it is at the bottom (of the cycle).
Angel investing: risks, rewards
52%: Amount of angel investment exits that returned less than the capital invested.
7%: Amount of exits that produced returns 10 times the amount invested.
Oregon Business Magazine Names Ferguson Wellman a Top Financial Manager/Planner in its 2014 Power Book
PORTLAND, Ore. – January 15, 2014 – Ferguson Wellman Capital Management is pleased to announce that the firm has been named by Oregon Business Magazine as a top financial planner/manager in their annual Power Book publication. Oregon Business Magazine ranked Ferguson Wellman second in the state on their list of 27 financial service companies. The listing was created by calculating the total number of assets under management, in Oregon and in total.
“We are very flattered by this honor, but feel most satisfied that we have our clients’ confidence and trust. That is truly paramount to us,” said Jim Rudd, chief executive officer.
Founded in 1975, Ferguson Wellman Capital Management is a privately owned investment advisory firm, established in the Pacific Northwest. With more than 651 clients, the firm manages $3.8 billion in assets that comprise union and corporate retirement plans; endowments and foundations; and individuals. In 2013, Ferguson Wellman created a new division, called West Bearing Investments, that servers emerging and established wealth. Minimum account sizes: $3 million for Ferguson Wellman; $750,000 for West Bearing Investments. (as of 12/31/13)
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Ferguson Wellman Capital Management Ranked as a Top Western Adviser
Ferguson Wellman Capital Management Ranked as Top Western Adviser
PORTLAND, Ore. – December 23, 2013 – Ferguson Wellman Capital Management has recently been named by InvestmentNews as a top adviser company in the Western United States.
InvestmentNews ranked Ferguson Wellman 10th on their list of 15 registered investment advisors in the west. Ferguson Wellman is the only firm from Oregon to be named and the largest in the Pacific Northwest on their list. The ranking was calculated by total assets under management, with Ferguson Wellman at $3.2 billion in assets under management at the time of their survey, which was November of 2013.
“While it is always gratifying to be ranked highly among your peers – what is most meaningful to us is earning the trust and confidence of our clients. We work hard at doing that every day,” said Jim Rudd, chief executive officer.
Founded in 1975, Ferguson Wellman Capital Management is a privately owned investment advisory firm, established in the Pacific Northwest. With more than 600 clients, the firm manages $3.8 billion in assets that comprise union and corporate retirement plans; endowments and foundations; and individuals. Minimum account size: $3 million. (as of 12/31/13)
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Methodology InvestmentNews qualified firms headquartered in the United States based on ADV data reported to the Securities and Exchange Commission as of Nov. 1. To qualify, firms must have met the following criteria: (1) latest ADV filing data is either on or after Jan. 1, (2) total AUM is at least $100M, and (3) does not have employees who are registered representatives of a broker-dealer, (4) provided investment advisory services to clients during its most recently completed fiscal year, (5) no more than 50% of regulatory AUM is attributable to pooled investment vehicles (other than investment companies), (6) no more than 25% of regulatory AUM is attributable to pension and profit-sharing plans (but not the plan participants), (7) no more than 25% of regulatory AUM is attributable to corporations or other businesses, (8) does not receive commissions, (9) provides financial planning services, (10) is not actively engaged in business as a broker-dealer (registered or unregistered), or as a registered representative of a broker-dealer, (11) has neither a related person who is a broker-dealer/municipal securities dealer/government securities broker or dealer (registered or unregistered), nor one who is an insurance company or agency, (12) the state in which financial advisory business is conducted is one of the following: AK, AZ, CA, CO, HI, ID, MT, NM, NV, OR, UT, WA, or WY.
Source: InvestmentNews Data
Deidra Krys-Rusoff Quoted in Bloomberg Business News
Bloomberg Business Week Detroit Pension Proposal Would Shut Out New Hires
September 27, 2013
By Corey Williams
Hoping to stanch some of the red ink flowing from Detroit, its emergency manager is riling the workforce with a proposal to close the city's pension plans to new employees by the end of the year and move the city to a 401(k)-style system that has become the norm in the private sector.
Detroit's underfunded obligations of about $3.5 billion for pensions and $5.7 billion for retiree health coverage are part of the city's $18 billion debt load and a major reason emergency manager Kevyn Orr filed for bankruptcy protection in July.
Now, he wants to end pensions for new employees and freeze benefits to about 18,000 members. Non-taxable annuity savings will be closed to new employees and no future contributions would be accepted after Orr's proposed Dec. 31 "freeze date."
Non-vested active system members also will be frozen out by Dec. 31.
"They took my wages and now they're trying to take my pension," said Mike Mulholland, vice president of American Federation of State, City and Municipal Employees. "All of our people are saying 'what are they doing to us?'
"We've already given concession after concession, and now to be asked to give up more and be put in a defined contribution plan ... they want to force us to take something where we have no security when we retire."
Orr's pension plan has to be approved by Michigan Treasurer Andy Dillon and is one of the strongest challenges to unions in the one-time organized labor stronghold.
It also is likely to continue the parade of court challenges by union leaders who say changes to pensions and bargained health care benefits violate Michigan's Constitution.
But Orr counters that federal bankruptcy law trumps state law.
James McTevia, a Detroit-area turnaround expert, said he is not aware of a previous ruling on the matter, but adds it's clear what Orr is trying to do.
"He is following the natural process for a reorganization," said McTevia, of McTevia and Associates. "That sets up a mechanism to make changes to the entity's debt structure. If the city doesn't have the money to pay (into the pensions), what difference does the law make? If the city can't do it, it can't do it. That contract has to be rejected and another contract has to be entered into."
A draft of the pension proposal was given last week to the General Retirement System, which represents about 20,500 active and retired city workers. AFSCME Council 25 spokesman Ed McNeil said unions have not received the draft.
In it, the city also would contribute five percent of the base pay of non-uniformed workers to the 401-type pension plan.
Overtime, bonuses and longevity pay will not be factored into compensation as they have been in the past. The city will make no contributions to a deferred compensation plan in which participant contributions and earnings on retirement money are tax-deferred.
A separate plan for police and fire retirees still is being worked on and has not been presented to that pension system, said Bill Nowling, a spokesman for Orr.
"But it will be similar" to the General Retirement System plan, Nowling said.
The police and fire system has nearly 12,700 members.
The pension systems, city unions and individual retirees are fighting Orr in bankruptcy court. They don't believe he has proved Detroit is insolvent and complain that he hasn't bargained in good faith.
Mary Estell, a retired Department of Public Works employee, receives a pension of about $2,300 per month after 32 years with the city. She realizes the likelihood of getting more is unlikely.
"At this point, there is nothing we can do," Estell said of Orr's pension plan. "The city doesn't have any money, so we won't get any increase. If the bankruptcy doesn't go through, then maybe there's a chance we will get an increase in the future."
Orr's plan does not say how much would be saved, according to a draft of the proposal.
A spokeswoman for the pension system says officials still are studying the plan. "It really just caught us completely off guard," said Tina Bassett. "It was the first time we saw it."
But any changes could take as long as two decades to make a dent in how Detroit's long-term debt is structured, according to Michael Sweet, a bankruptcy attorney with Fox-Rothschild.
Moving from a defined benefit to a defined contribution plan "isn't going to change the savings tomorrow," Sweet said.
"Kevyn Orr is working on all sorts of different things. One is to address the short term issues and deal with the longer term imbalance of the budget."
Private companies long ago starting shedding plans that relied heavily on employer contributions in favor of those where workers decide how much of their pay they want socked away. As cities and states continue to buckle under the pension and health care liabilities, elected leaders are pushing for similar changes.
"Something has to be done because the pensions are extremely expensive and with the aging demographic, those costs just keep going up," said Deidra Krys-Rusoff, a portfolio manager with Ferguson Wellman, an Oregon-based capital management firm.
The Birth of the Fed
Posted by Lori Flexer, CFA
Executive Vice President
100 years ago today, the Federal Reserve was formed. NPR's Planet Money shares the fascinating beginnings of this important institution. Click here for the full story.
Note: Clicking on this link will take you to a third-party website. The information provided by this site is not endorsed or guaranteed by Ferguson Wellman. Disclosures
Oregon Jewish Life Magazine Writes Article About West Bearing Investments
Josh Frankel Takes West Bearing by the Horns Oregon Jewish Life Magazine
By Deborah Moon
December 2013
Since 1975 Ferguson Wellman Capital Management has managed investment accounts for clients who have portfolios of at least $2 million, a level that has caused them to turn away many prospective clients and then compete for those same investors a few years down the road.
Now Josh Frankel has joined the firm to lead West Bearing Investments; this new division of Ferguson Wellman caters to clients with $750,000 or more in their investment portfolios. By Sept. 30, the new firm had $25 million in assets under management – a goal they didn’t foresee reaching until the end of the year.
“We are a boutique agency with $3.6 billion in assets under management,” says Mary A. Faulkner, Ferguson Wellman vice president in charge of communications. She says the firm decided on a growth strategy to enable them to start relationships with clients earlier in their investment journey.
Josh says he grew up in a traditional Jewish family in a large Jewish community in Los Angeles before attending the University of Oregon, where he was a field goal kicker for the Ducks and discovered Hillel. “For the next several years, folks at Hillel were a big part of my Jewish experience in college and are still some of my greatest friends today,” he says. Now he is the board president of the Greater Portland Hillel. Josh has also served on numerous boards and committees in the Jewish community including B’nai B’rith Camp, Oregon Jewish Community Foundation, Cedar Sinai Park and Mittleman Jewish Community Center. He co-chaired the Jewish Federation of Greater Portland campaign kickoff event in 2011. Since Ferguson Wellman encourages all employees to take leadership roles on boards they feel passionate about, it’s not surprising that Josh met some of his future co-workers while serving on a board.
“They called me in May to talk about this new venture,” says Josh. “I’m such a community-driven person that working for a local, employee-owned company seems too good to be true.” About 90% of employees are stakeholders in the firm, which may help account for the fact that no portfolio manager has left the firm in the past 24 years. “He interviewed with about 18 people,” says Faulkner. “He was one of our first unanimous hires. … We wanted someone who understood our culture. Of all those we interviewed, Josh asked the most questions about the client experience, and that really stood out for us.”
Ferguson Wellman CEO Jim Rudd agrees. “Josh fits hand in glove with the professional people we have in the company. He has clients’ best interests first and foremost. And he has a network … Josh Frankel’s name is well known,” says Rudd. West Bearing, like Ferguson Wellman, will focus on long-term relationships with clients. “Consistency, reliability and continuity are more than words, they are our bedrock,” says Rudd. After he was hired as senior vice president and portfolio manager in July, Josh recruited Jorge Chavarria, with whom he had worked at Merrill Lynch, to join him at West Bearing. The two serve as portfolio managers who can draw on the full resources of Ferguson Wellman. “We never wanted West Bearing to feel like Ferguson Wellman Lite,” says Faulkner, who added the division was created to serve new clients. “We have some clients who have drawn down their assets (in retirement). We won’t move them over to West Bearing. This is to start new relationships.”
She adds that West Bearing will have access to all of Ferguson Wellman’s analysts and other resources. “It’s all under one roof. This is his team he is working with,” she says. And it is an impressive team. This year Forbes named Ferguson Wellman Capital Management 40th in the “RIA Giants” category of the Top Fifty Wealth Managers list. The data for the rankings are provided by Registered Investment Advisors Database and are based on the total discretionary assets under management.
“My goal is to help people understand their goals, put together a game plan and monitor that plan over time,” says Josh. Faulkner says she is also impressed by Josh’s devotion to his family. “His spouse is a doctor, so Josh has equal responsibility.” In 2008 Josh and his wife, Amy, moved to Portland for Amy’s residency at OHSU. Dr. Amy Swerdlin Frankel is a board-certified dermatologist with the Providence Medical Group. Their son, Ethan, is 14 months old. Josh says their dog Rocky, a Labradoodle, bears a striking resemblance to West Bearing’s logo – an American bison. The division’s name and logo were chosen to serve as an inspiration for West Bearing. The company literature explains: “Most animals in the West attempt to outrun inclement weather, prolonging their exposure to the elements and weakening their condition. Bison instinctively turn to face the storm. By bearing west, they successfully find the quickest path to clear skies.
Ferguson Wellman Capital Management Recognized as One of Portland Business Journal’s Most Admired Companies
Ferguson Wellman Capital Management is pleased to announce that the firm has been named by the Portland Business Journal as one of the Most Admired Companies. Of the 10 financial services companies listed, the firm was ranked third, with Umpqua Bank being first place. There were a total of 151 companies nominated in the financial services category. Ferguson Wellman was also voted 18th across all categories. This is the ninth consecutive year that the company has made this exclusive list. The list is compiled by surveying over 3,000 CEOs across the state of Oregon and southwest Washington. The CEOs were asked to select two companies they most admired in eight industries. They were also asked to rate the two companies they selected in each category on the following attributes: (1) innovation (2) quality of services or products (3) community involvement and (4) quality of management and (5) branding and marketing.
“We were honored to have been selected, along with many other companies that we respect and admire throughout the state,” said Steve Holwerda, CFA, chief operating officer and principal.
Founded in 1975, Ferguson Wellman Capital Management is a privately owned investment advisory firm, established in the Pacific Northwest. With more than 600 clients, the firm manages $3.6 billion in assets that comprise union and corporate retirement plans; endowments and foundations; and individuals. (as of 9/30/13)
West Bearing Investments Continues to Thrive
West Bearing Investments Continues to Thrive
Ferguson Wellman Capital Management is pleased to share the growth of West Bearing Investments, a division of Ferguson Wellman. After only five months in operation, West Bearing has reached the 2013 target for assets under management with $25 million. Many sources for these clients have been referrals from Ferguson Wellman clients and employees, accountants, attorneys and referrals from our friends at Charles Schwab and Umpqua Private Bank.
West Bearing Investments quietly launched in July 2013 after a year of internal exploration of a new growth strategy. The division was formally announced in the fall of 2013. West Bearing Investments was inspired by the opportunity to broaden client relationships and help individuals and institutions navigate through many important planning and financial decisions earlier. West Bearing serves clients with a minimum of $750,000 in investable assets and benefits from the investment principles, structure and expertise of Ferguson Wellman.
The West Bearing team is led by Josh Frankel, CRPC©, senior vice president. Frankel brings a range of professional experiences that enable him to provide a high level of client service and guidance on investment management and planning. Also part of the West Bearing team is Jorge Chavarria, who has over 10 years of client service experience in the financial industry and proactively guides clients and their portfolio managers toward best practices that foster strong relationships.
Founded in 1975, Ferguson Wellman Capital Management is a privately owned investment advisory firm, established in the Pacific Northwest. With more than 600 clients, the firm manages $3.6 billion in assets that comprise union and corporate retirement plans; endowments and foundations; and individuals. Minimum account size: $2 million. (as of 9/30/13)
Ferguson Wellman's Tim Carkin Celebrates 10 Years
Ferguson Wellman Capital Management is happy to announce that Timothy D. Carkin, CAIA, CMT, has reached the important milestone of his 10th anniversary milestone at the firm. Carkin heads our trading and operations departments and is a member of the investment team. He also serves as an analyst for our firm’s alternative investments team and Strategic Opportunities investment strategy.
Carkin began as a trading associate but has had several promotions during his tenure at Ferguson Wellman. He consistently presents ideas for more efficient processes and best practices. Carkin holds the firm’s record for most “You Made It Happen” awards, a yearly internal recognition of employees that best embody the firm’s core values.
Carkin also represents Ferguson Wellman well throughout the community. He is involved with the City of Sherwood Budget Committee, Educational Recreation Adventures organization and the Oregon Council on Economic Education.
Jason D. Norris, CFA, Quoted in Barron's Magazine
Raking in Returns By Jack Willoughby
October 19, 2013
America’s money managers expect stocks to rise 7% from now through the middle of next year. They like Europe, tech shares and real estate, not bonds. Memo to Ben: It’s time to taper.
Whew! It's back to business in Washington after a 16-day government shutdown. And it's back to business on Wall Street—the business of buying stocks, that is.
Markets cheered the news last week that Congress had finally come to its senses, or what passes for the same, in reaching a deal to lift the U.S. debt ceiling and send government workers back to their posts. The Dow rallied 1.4% on Wednesday, and 1% on the week, to 15,399, and the Standard & Poor's 500 rose 2.4%, to a new high of 1744.
America's money managers had a strong hunch things would work out on Capitol Hill, at least for now, and they told us so in their largely upbeat responses to our fall Big Money poll. Sixty-eight percent of participants, representing a cross section of the nation's professional investors, declared themselves bullish or very bullish about the stock market's prospects through the middle of next year, evidence that they see no lasting damage from Washington's latest drama.
"The government shutdown is near-term noise for investors," said Jason Norris, senior vice president of research at Portland, Ore.–based Ferguson Wellman Capital Management, in the days before the deal was announced. "A few months from now, we'll be looking back at what could well be a good buying opportunity. We like that there are a lot of skeptics out there. It means the stock trade isn't crowded."
Robert Turner, chairman of Turner Investments in Berwyn, Pa., calls this "the most joyless" bull market in history, given the doubts attendant to every point rise in the Dow. But you won't find much hand-wringing in his office, as he expects strength in corporate fundamentals to persist. "For 18 quarters, earnings have come in above expectations, and that won't change," he notes. "Shares are still reasonably valued. These runs don't end unless excesses are created, and I don't see any excesses."
Healthy corporate balance sheets and a world economy that is slowly healing also are working in stocks' favor, says Stephen Drexler, a managing director of Wells Fargo Advisors in Colorado Springs, Colo. "Slow and steady with little fanfare and still much to worry about isn't a bad backdrop," he says.
Yet, even after adding up the pluses, the pros have pulled in their horns some since spring. Back then, a record 74% of poll respondents said they were bullish on stocks.
Today's bulls see the U.S. market advancing by only single digits through next June. Based on their consensus estimate, the Dow will rise 7% between now and then, ending this year at about 15,700 and mid-2014 at 16,486. The bulls see the S&P 500 gaining 5%, to 1824, by the middle of next year, and the Nasdaq adding 5%, to 4116, in that span.
The managers' subdued forecasts reflect the fact that 71% of poll participants now regard stocks as fairly valued, compared with 58% in the spring. Only 15% consider the U.S. market undervalued, down from 26% last April.
The S&P 500 is trading for 14 times next year's expected earnings of $122.19, which, from a historical perspective, makes the market neither rich nor cheap. Just over half of the Big Money managers expect the price/earnings multiple to expand in the next 12 months, while 11% see a contraction, and the rest see no change.
"We're unlikely to see the gains in stocks that we've had in the past couple of years, just because valuations are higher," observes Todd P. Lowe, president of Parthenon, a Louisville, Ky., money manager. "Also, the Federal Reserve is going to unwind [its bond-buying program]. We're not optimistic it will be able to do so seamlessly."
John Fox, co-manager of the $900 million FAM Value fund, sees long-term returns "in the high-single/low-double digits over five to 10 years," reinforcing the need for savvy stock-picking. He looks to capture faster growth overseas by investing in U.S. companies with big footprints in Europe and China. Also, he applauds corporations with substantial cash flow that enhance value by buying back shares, paying dividends, and merging.
According to the Big Money pros, rising corporate profits, stronger economic growth, and better employment news are the three factors that would be most likely to send U.S. stocks sharply higher in the next six months. Better news about China's economy also would reverberate positively here.
The managers finger continued political dysfunction as the most likely rally-killer, followed by earnings disappointments and slowing economic growth. "The rhetoric from both political parties is holding back the recovery," says C.T. Fitzpatrick, founder of Vulcan Value Partners, in Birmingham, Ala.
Hands down, the Big Money managers view the stock market as the best place for your money over the next 12 months—and the next five years. On a near-term basis, 80% expect equities to outperform all else, while 6% are betting on cash, and 6% on real estate.
About half of the managers think the U.S. will be the best-performing market in the next 12 months; 24% say European equities will shine brightest as the Continent emerges from a multiyear slump; and 8% are putting their money on Japan. Many managers expect emerging markets to do best over five years, outperforming the U.S., a reflection of the rapid growth of developing economies.
Among stock-market sectors, the managers like technology best, given the industry's strong fundamentals. Thirty-two percent are betting that tech will lead the pack in the year ahead, with 11% backing financials, and 10%, energy stocks.
Norman Conley, chief executive of JAG Capital Management in St. Louis, sees revenue growth as a key to lifting sectors. "There is only so much you can achieve from balance-sheet machinations, and the markets are slowly starting to recognize that," he says.
Conley favors industrial and technology stocks, and prefers biotech stocks to relatively staid large-cap drug and consumer-staples companies.
Utilities get little respect from our crowd. With bond yields edging up, about a third of the Big Money crowd thinks utility shares will be the worst performers in the next 12 months. The managers also worry about the outlook for consumer-cyclical and financial issues.
The managers' big bet on tech is apparent from their favorite stocks, a list topped this fall by Apple (ticker: AAPL), Google (GOOG), and Microsoft (MSFT). Strip out Apple's net cash, notes Fitzpatrick of Vulcan, and the shares, now $508, sell for only seven times expected earnings.
Other favorites include Samsung Electronics (005930.Korea), EMC (EMC), energy-pipeline operator Kinder Morgan (KMI), and CF Industries (CF), a fertilizer producer.
As usual, there is broader agreement on the market's most overvalued issues, with Tesla Motors (TSLA), the electric-car maker, the managers' No. 1 pan. The company is expected to sell only about 20,000 cars this year, but sports a market value of $22 billion, or $1.1 million per vehicle.
Netflix (NFLX), Amazon.com (AMZN), Facebook (FB), and Salesforce.com(CRM) also look too richly priced in the view of survey respondents. And some think the same of, yes, Apple.
The big money poll is conducted twice yearly, in the spring and fall, with the help of Beta Research in Syosset, N.Y. Our latest survey, mailed in mid-September, just after the Fed's policy makers met, drew responses from 135 institutional investors, representing some of the U.S.' largest asset managers as well as smaller firms.
Just 8% of respondents describe themselves as bearish about the outlook for stocks through next June. Nearly one in four is neutral, up from 19% in the spring. The bears expect the Dow to close the year at about 14,450, and drop to 14,016 by next June. They see the S&P 500 falling to 1609 by year end and 1561 by mid-2014, and the Nasdaq trading at about 3400 in nine months, 13% below its current level.
Most bears say the bull market's fate is tied to future Fed moves to curb quantitative easing, as its bond-buying program is known. The Fed has been purchasing bonds to drive down interest rates and stimulate economic growth.
Jason Brady, manager of the Thornburg Strategic Income fund, says that accommodative central-bank policy has pushed money into risky assets, artificially inflating stock prices. If corporate earnings falter and the Fed starts to taper, the rationale for current prices will be undermined.
Brady expects this negative scenario to play out over time; he sees the Dow holding at 15,000 for the remainder of this year before dropping to 14,000 six months hence. "If quantitative easing has been really effective in spurring economic growth, taking it away can only lower growth prospects," he contends.
William Tempel, chief investment officer at Reynolds Capital Management, a family office based in Fort Worth, Texas, argues that price distortions created by two rounds of QE make it difficult for equity investors to determine what true value is. "It is difficult to get a good understanding of what you should be buying when it is financed with 2% money," he avers.
Consequently, Tempel has been investing in start-up businesses, such as a salt-extraction enterprise in the domestic oil- and gas-producing region known as the Bakken shale. Start-ups, he notes, offer opportunities to build value independent of the Fed's moves.
Seventy-two percent of Big Money managers are bullish on real estate, in part because its returns aren't correlated with financial markets. Thirty-four percent are bullish on commodities, and 29% like gold. The yellow metal rallied 3% on Thursday, to $1,320 an ounce, amid short-covering and expectations that the cost of the government's shutdown would further postpone the Federal Reserve's plans to taper its asset buying. Gold closed the week at $1,316 an ounce.
Largely because of the U.S. central bank's policies, it's hard to rouse a kind word for bonds from the managers. Only 9% are bullish on U.S. Treasuries, though 18% think positively of corporate bonds. Just 4% see any value in bond-related mutual and exchange-traded funds.
Greg Melvin, chief investment officer at Pittsburgh's CS McKee, says that stocks will outperform, even with the market "fairly valued," precisely because of the dismal prospects for bonds. "Our client base of pension funds has no alternative but to put money into stocks to meet their actuarial assumptions," he says. "Rates will go up for the next 30 years, leaving almost zero return for bonds."
What's true of institutions could also pertain to individual investors. Chas Smith, president of CPS Investment Advisors in Lakeland, Fla., expects the rotation into stocks, which began this year, to gather steam as retirees book losses on their fixed-income accounts. "This will cause bond-fund redemptions," he says. "The Fed has manipulated interest rates to artificially low levels. Rates have to rise."
Like most investors, the Big Money managers are trying to gauge when the Fed will pull back from the market and let the economy stand on its own. After all, 80% say monetary policy influences their investment decisions significantly or somewhat. Only 4% say it's of no consequence.
Two-thirds of our respondents disagreed with the central bank's decision last month to postpone tapering, although 80% expect the Fed to reduce its bond purchases starting in next year's first half. As one manager said in written comments, "If the economy is improving, the bond-buying program should end. If the economy isn't improving after multiple years of bond-buying, it may be time to try a different strategy."
Another noted that while QE has been beneficial personally, persistently low rates "are destroying savers, senior citizens, and people in the middle and lower classes."
Or, as James Spence, co-founder of Spence Asset Management in Las Cruces, N.M., put it, "the Fed assumes there is no cost to using monetary policy to cure problems not caused by monetary policy."
As the Fed pulls away from the market, bond yields are expected to rise. The yield on the 10-year Treasury has already jumped to 2.58% from a low of 1.6% in May, and 3% no longer seems so distant. Indeed, 76 of the Big Money managers expect the 10-year to yield 3% to 3.5% a year from now, while 17% see yields of 4% or more.
For all of the doubts they express about QE and its chief architect, Federal Reserve Chairman Ben Bernanke, the money managers are split in their assessment of the strategy's results. Two-thirds say that quantitative easing has been beneficial to neutral for the U.S. economy, at least until this point, although it could prove harmful if prolonged.
Gross domestic product increased in the second quarter at an annual rate of 2.5%, and a third of the managers look for that pace to be sustained in the next year. Another 21% foresee GDP growth of 3.5% or more.
At these growth rates, inflation doesn't seem a worry, at least to half of the managers in our survey. As for the rest, 36% predict that prices will rise, and 13% aren't sure.
Most respondents expect unemployment to stay stuck at about 7% to 7.5% in the next 12 months, but slip to 6%-6.5% the following year—yet another sign of modest progress. The managers also see continued good news for the housing market, which has picked up this year.
The Big Money men and women see little change in oil prices in the year ahead. West Texas crude is trading at $100.81 a barrel, and their mean forecast puts it at $104.37 in 12 months. John White, of Triple Double Advisors in Houston, thinks prices might drop, however, now that Libya is back in the oil market. The growth of domestic shale-oil and gas production underpins his optimism about the U.S. economy and the stock market. "The U.S. is benefiting from cheaper and more abundant natural gas," he says. "This should allow us to build out manufacturing and infrastructure."
Most of the investment managers in our survey pay less attention to fiscal than monetary policy, but that doesn't mean they don't keep a close eye on Washington, especially these days. While it's early to be handicapping the 2014 midterm elections, we asked them to do just that.
More than 90% expect the Republicans to retain control of the House of Representatives in the next Congress, and 68% look for the Democrats to keep the keys to the Senate. That suggests more wrangling and less clarity ahead about taxes, government spending, and regulation.
The S&P 500 has rallied 22% this year, with little help from Congress but plenty from the Fed. It has been tough even for professional investors to keep pace. Still, 65% of Big Money managers say they're beating the market this year, and the rest probably are rushing to catch up. That's another reason to think the bulls will stay in the driver's seat for now.
Ralph Cole Honored as Duck of the Year
October 24, 2013 Ferguson Wellman is proud to announce that portfolio manager and senior vice president, Ralph Cole, CFA, was named “Duck of the Year” by the Oregon Club of Portland. The club committee considers many attributes when naming the yearly honoree, including volunteerism, passion and loyalty to University of Oregon Athletics.
Cole has served as past president of the Oregon Club of Portland and is currently on its board. He is a devoted fan, attending all the major bowl games the Ducks have competed in and visiting every Pac-12 football venue with the exception of Utah.
Among his most significant contributions to the culture of the Ducks is his recommendation that the song, “Shout,” by the Isley Brothers be played between the third and fourth quarters during home football games at Autzen Stadium.
Cole was informed of the honor at an annual luncheon hosted by the Oregon Club. Cole’s family and colleagues were in attendance, and he was presented the award by Matt Cole, his brother and fellow past president of Oregon Club of Portland.
Ralph Cole, Ken O'Neil and George Hosfield
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Krys-Rusoff Quoted in the Portland Business Journal
Coast Aquarium Freed from Some (High-Interest) Bonds
By Matthew Kish
The Portland Business Journal
November 1, 2013
The Oregon Coast Aquarium this week said it will buy back more than $500,000 in bonds early, another sign that its once-shaky finances continue to improve.
The 1998 departure of Keiko, the killer whale made famous in the movie “Free Willy,” ripped a giant hole in the aquarium’s balance sheet by leaving it without a main attraction.
Since then, the popular tourist venue has struggled to stay ahead of $12.4 million in debt it accrued before Keiko’s departure.
Its finances have been on the upswing since CEO Carrie Lewis set in place a turnaround plan in 2011. It ended its 2012 fiscal year with a nearly $850,000 profit, a huge turnaround from 2011 when it lost nearly $300,000.
This week, it said it will spend $340,000 to pay off bonds due in 2015. It’ll spend another $185,000 to retire part of the $660,000 in bonds that come due in 2016.
Deidra Krys-Rusoff, a portfolio manager at Portland-based Ferguson Wellman who specializes in bonds, said the move will free the aquarium from some high interest payments. The 2015 bonds paid 4.4 percent interest. The 2016 paid 4.5 percent.
“We’re going along well and we’d like to see this continue in the future and I think it will,” said Rick Goulette, the aquarium’s chief financial officer.
Fovinci Quoted in Bloomberg News
October 16, 2013 Bloomberg News
By Daniel Kruger and John Detrixhe
Treasury Paying $120 Billion in Bills Doubted as Fitch Warns
Oct. 16 (Bloomberg) -- Investors holding $120 billion of Treasury bills coming due tomorrow are increasingly worried that they won’t get paid. Rates on the bills, maturing the same day that Treasury Secretary Jacob J. Lew has said the U.S. will exhaust its borrowing capacity, have surged 16 basis points, or 0.16 percentage point, to 0.36 percent this week, according to Bloomberg Bond Trader prices. The securities, issued a year earlier, traded at a rate of negative 0.01 percent as recently as Sept. 26. “That is how fear manifests itself,” said Marc Fovinci, head of fixed income at Ferguson Wellman Capital Management Inc. in Portland, Oregon, who helps invest $3.5 billion and holds about $500,000 of Oct. 31 bills in one account. “The market is discounting a day, or several days delay in payments.” Lew told Congress last week the extraordinary measures being used to avoid breaching the debt ceiling “will be exhausted no later than Oct. 17” and the department will have about $30 billion to pay obligations if Congress fails to reach an agreement to lift the cap. Fitch Ratings placed the U.S.’s AAA credit rating on a negative watch yesterday, citing the government’s failure to raise its borrowing limit as the deadline approaches.
‘Last Gallon’
The Treasury should have enough money to pay off the Oct. 17 bills, according to Ira Jersey, an interest-rate strategist in New York at Credit Suisse Group AG, one of the 21 primary dealer obligated to bid at Treasury auctions. The U.S. raised $13 billion in “new cash” through yesterday’s sale of $65 billion in three- and six-month bills, which should leave the government with about $40 billion once the Oct. 17 bills mature, he said. “After that the government is running on its last gallon of financial gas,” Jersey wrote in an e-mail. “After Oct. 24, the government will be running on fumes.” The next securities maturing after the Oct. 17 debt are $93 billion of bills due Oct. 24. Rates on those bills have risen 20 basis points to 0.47 percent this week and touched 0.53 percent, the highest since they were sold in April. The rate was negative as recently as Sept. 27.
‘Close Enough’ “We are close enough to the deadline that, even if the latest headlines suggest the talks are progressing, there will be those risk-averse investors who decide they don’t want to hold those bills,” said John Davies, a U.S. interest-rate strategist at Standard Chartered Plc in London. “For many Treasury bill holders, a delayed payment can cause major problems and that means you have to shift your positioning, which creates selling pressure.” The Treasury is scheduled to sell $68 billion in bills today, including $20 billion of four-week securities, $22 billion in one-year debt and $26 billion in 189-day cash management bills. The sizes of the four-week and 27-week bills indicates the Treasury has “slightly more room left under the debt limit” than previously estimated, according to Wrightson ICAP LLC, an economic advisory company specializing in government finance. “There is very little chance that the Treasury will have any trouble rolling over the Oct. 24 bills even if - as seems quite possible -- the debt ceiling dispute drags into next week,” according to a commentary on the Jersey City, New Jersey-based company’s website yesterday.
Yesterday’s Auctions
The three-month bills sold yesterday drew a bid-to-cover ratio of 3.13, below the 4.52 average over the past 10 auctions. The high rate of 0.13 percent was the most since February 2011. The bid-to-cover ratio at the six-month bill auction was 3.52 versus an average of 5.07 at the previous 10 sales. It drew a rate of 0.15 percent, the highest since November 2012. This was the second-consecutive week bill that auctions attracted lower-than-average demand amid the budget wrangling in Washington. “The bill auctions were very poor,” said Thomas Simons, a government-debt economist in New York at primary dealer Jefferies LLC. “Unless there is some type of agreement in Washington, the bill market will continue to trade choppily and auctions will not go well.” Senate leaders resumed talks aimed at avoiding a default and ending the government shutdown after the Republican- controlled House scrapped a vote on its plan. Initial Conditions
Majority Leader Harry Reid, a Democrat, and Minority Leader Mitch McConnell, a Republican, had suspended their talks earlier while the House was considering its own bill. The House proposal contained almost none of Republicans’ initial conditions for ending the shutdown and raising the debt ceiling. The emerging Senate agreement would fund the government through Jan. 15, 2014, and suspend the debt ceiling through Feb. 7, 2014. The Treasury Department could use its extraordinary measures to delay default for about another month beyond that, said a Senate Democratic aide who spoke on condition of anonymity to discuss the plan. “Although Fitch continues to believe that the debt ceiling will be raised soon, the political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default,” Fitch analysts Ed Parker, Tony Stringer and Douglas Renwick wrote in a report published yesterday. Fitch said it expects to resolve its rating watch negative outlook on the U.S. by the first quarter of 2014.
Moody’s View
Moody’s Investors Service, which rates the U.S. a stable Aaa grade, reiterated that it expects the debt ceiling to be raised, averting a default. The company also anticipates “that the U.S. government will pay interest and principal on its debt even if the statutory debt limit isn’t raised.” Standard & Poor’s stripped the U.S. of its top credit grade on Aug. 5, 2011, citing Washington gridlock and the lack of an agreement on a way to contain its increasing ratio of debt to gross domestic product. The ratio of public debt to GDP is projected to decline to 74.6 percent in 2015 after peaking next year at 76.2 percent, according to a Congressional Budget Office forecast in May. “We do think what’s going on right now validates our decision to lower the rating one notch,” John Chambers, a managing director of sovereign ratings at S&P, said yesterday in an interview on Bloomberg Television’s “Surveillance.” “We think there will be an 11th hour deal, and that is our working assumption.”
Record Low
While the S&P downgrade didn’t result in investors charging the U.S. more to borrow, as 10-year yields fell to a record 1.38 percent in July 2012, the move contributed to a global stock- market rout that erased about $6 trillion in value from July 26 to Aug. 12, 2011. Citigroup Inc. is bracing for a possible U.S. default by avoiding some short-term Treasury investments amid what Chief Executive Officer Michael Corbat called “a dangerous flirtation with the debt ceiling.” Corbat made the remark during a conference call yesterday to discuss third-quarter results at New York-based Citigroup. The bank doesn’t own Treasuries that mature in October and holds few with terms ending before Nov. 16, Chief Financial Officer John Gerspach said. Although rates on bills have risen, they are lower than historical levels. One-month rates have averaged 1.5 percent in the past 10 years. During that time they touched a high of 5.26 percent in November 2006 and dropped to a low of negative 0.09 percent in December 2008.
Spending Cuts
Two years ago, one-month rates climbed to a 29-month high of 0.18 percent as the Aug. 2, 2011, deadline set by Treasury to avoid a default approached. They traded at negative 0.046 percent in December 2012 before a year-end trigger that forced automatic spending cuts and tax increases. The Bipartisan Policy Center, a Washington-based nonprofit research group, estimates that the Treasury will actually be unable to pay all the government’s bills on time at some point between Oct. 22 and Nov. 1. While the Treasury will probably be able to delay the true drop-dead date for a few days, it is unlikely to be able to do so beyond Nov. 1 because several large payments are due before then, the center says. “There’s just a general interest in the market to be out of any paper in the market that could potentially be impacted by the debt ceiling in any way,” said Andrew Hollenhorst, fixed- income strategist at Citigroup in New York. “That’s just general concern around the debt ceiling and concern around something the market doesn’t feel it completely understands.”
Lori Flexer Honored by Portland State University’s Center for Women, Politics and Policy
Ferguson Wellman Capital Management is pleased to announce that Lori Flexer, executive vice president, was honored by Portland State University’s Center for Women, Politics & Policy as the recipient of the 2013 Leadership Award in the civic category. Flexer received the honor at the Center’s annual Women’s Leadership Luncheon held on October 3, 2013 at the Portland Art Museum. There were approximately 400 people in attendance, including her family, friends and many from our firm. She was honored along with Cheryl Ramberg-Ford, Dr. Melody Rose, Hon. Darleen Ortega and Sue Schaffer.
The PSU Center offers leadership programs for women throughout the state who are currently enrolled at one of Oregon’s higher-ed institutions. Their mission is to inspire, educate and support the next generation of women leaders in Oregon. Flexer has been active in promoting the Center’s mission and has mentored numerous women over the years by encouraging them to consider a career in the investment industry. Past honorees include Joan Austin, Governor Barbara Roberts, Lynne Saxton, Hon. Norma Paulus, Jill Eiland, Judy Peppler, Justice Betty Roberts and Senator Margaret Carter, just to name a few.
Flexer is an invaluable member of our firm and we admire her passion, dedication and professionalism. She leads by example and it is heartwarming when others recognize her contributions and talents.
In the picture below, Lori Flexer is shown with the other award recipients. From L-R, Flexer, Schaffer, Ortega, Ramberg-Ford, Rose.
Cole Quoted in Portland Business Journal
September 10, 2013 The Portland Business Journal
By Matthew Kish
Why Nike Being Added to the Dow Matters
Washington County footwear giant Nike is the newest addition to the Dow Jones Industrial Average, the most widely-followed benchmark of the health of the stock market and U.S. economy.
The index includes 30 of the country's biggest blue-chip companies.
"It’s an honor to Nike," said Ralph Cole, senior vice president of research at Portland-based Ferguson Wellman Capital Management.
Goldman Sachs and Visa also will be added. Alcoa, Hewlett-Packard and Bank of America will be dropped.
"There's definitely a prestige factor and a sense that Nike is a large enough, stable enough company that it represents the overall economy and the market," said Sara Hasan, an analyst with McAdams Wright Ragen in Seattle who follows Nike.
As expected, Nike's stock (NYSE: NKE) climbed on the news. Many mutual funds buy the stocks of the companies in the Dow. It was up nearly 2 percent to $66.55 in mid-day trading.
"It generates a little buying power initially as the index needs to rebalance," said Blake Howells, vice president at Portland-based Becker Capital Management Inc. "But longer term the driver of stock prices is fundamentals."
The stock's average trading volume also will likely go up, which could lead to increased volatility.
"(The companies in the Dow) are the vehicles that hedge funds and even retail investors use to get in and out of the market quickly," Cole said.
Ferguson Wellman Capital Management Recognized at Corporate Philanthropy Awards
PORTLAND, Ore. – September 11, 2013 – Ferguson Wellman Capital Management is pleased to announce that the firm has been named by the Portland Business Journal as one of the city’s leaders in corporate philanthropy. Specifically, the Portland Business Journal named Ferguson Wellman Capital Management fifth in the medium sized companies category at their annual Corporate Philanthropy Awards luncheon. The rankings were based upon the total number of dollars donated to nonprofits. Although the Journal did not include the number of hours Ferguson Wellman employees donate every year, the number is an impressive 4,500 hours amongst 39 employees.
“This is an honor and recognition shared by everyone in our firm. It is gratifying to join other like-minded companies that make this city a better place to live and raise a family,” said Jim Rudd, Chief Executive Officer and Principal.
Ferguson Wellman Honored by Willamette Falls Hospital
PORTLAND, Ore. – August 15, 2013– Ferguson Wellman Capital Management was recognized by the Dr. John McLoughlin Heritage Society of the Providence Willamette Falls Hospital Foundation for years of philanthropic giving.
Ferguson Wellman was given the award at the annual “Friends of Dr. John” reception where they thanked their largest donors. Ferguson Wellman has supported the mission of Dr. John and the Willamette Falls Hospital Foundation by acting as sponsors of the event for over four years. The foundation raises funds to benefit the health and wellbeing of the community and is located in Oregon City.
Founded in 1975, Ferguson Wellman Capital Management is a privately owned investment advisory firm, established in the Pacific Northwest. With more than 600 clients, the firm manages $3.4 billion in assets that comprise union and corporate retirement plans; endowments and foundations; and individuals. Minimum account size: $2 million. (as of 6/30/13)
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