1 november 4, 2010 harley marine services 401(k) plan fund change presentation we will begin...
TRANSCRIPT
1
November 4, 2010
Harley Marine Services 401(k) Plan
Fund Change Presentation
We will begin momentarily. To access the audio portion, please call the toll-free number (1-888-751-0624) and enter the participant code (854903)* As a reminder, this presentation is being recorded
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Agenda
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Fund Changes
Model Portfolios
Investment Strategies
Resources
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Fund Change
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Replace Rainier Small/Mid Cap with Westcore Select• Rainier performance has not met the Investment
Policy Statement benchmark.• If you currently invest in the Rainier fund, assets will
be automatically transferred.
November 15, 2010
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5
Add Vanguard S&P 500 Index• Low cost way to invest in the largest 500 U.S.
companies.• Mirrors the S&P 500 Index• Suitable alternative to Masters Select Equity Fund
which is on the “Watch List”.
November 15, 2010
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Questions
6
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7
Model Portfolios
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Model Portfolios• Easy way to invest in a diversified portfolio.• Determined by your risk tolerance.• Five models to choose from.• Rebalanced January 1st and July 1st
November 15, 2010
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Investor Questionnaire
• Answer six easy questions to determine your risk tolerance.
• Add up your score.
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10
Investor Questionnaire
• Determine what type of investor you are based on your score.
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Asset Allocation
• Fund level guidance on your investment allocation.
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Questions
12
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13
Investment Strategies
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Stay Invested Stay in the Market—Don’t Miss Your Window of Opportunity Hypothetical $1,000 investment over 25-year period
1 (9/30/84–12/31/09)
If You…
Missed theTop 25
Days
Missed theTop 25
Days
Missed theTop 5 Days
Missed theTop 5 Days
StayedInvestedStayed
Invested
Missed theTop 15
Days
Missed theTop 15
Days
$12,003
$7,769
$4,484
$2,865
Compound 10.4% 8.5% 6.2% 4.3% Return
1. Source of chart data: Ned Davis Research, 9/30/09. The chart shows the results of a $1,000 hypothetical investment in the S&P 500 Index on 9/30/84 held through 9/30/09 compared to similar hypothetical investments in stocks that were not invested on the days that were the market highs during the period. The S&P 500 Index is a broad-based measure of domestic stock market performance that includes the reinvestment of dividends. The index is unmanaged and cannot be purchased directly by investors. Index performance is shown for illustrative purposes only and does not predict or depict the performance of any investment. Past performance does not guarantee future results. Due to ongoing market volatility, current performance may be more or less than the results shown in this presentation. The performance information does not show the effects of income taxes on an individual’s investment. Taxes may reduce your actual investment returns or any gains you may realize if you sell your investment. An investor’s shares, when redeemed, may be worth more or less than the original cost.
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Investment Strategies
Reduce the risk you take in the market
Dollar Cost Averaging
Diversification
Asset Allocation
Rebalancing
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16
These examples are for illustrative purposes only. Most investments generally fluctuate according to market conditions. Past performance is not a guarantee of future results. Dollar-cost averaging is the simple investment strategy of investing a consistent amount on a regular basis, usually monthly. By practicing dollar-cost averaging, you ensure that you’re buying fewer shares at a high price and more shares at a lower price, which is a goal among many investors. This may lower the average price you pay for an investment, while lowering the risk of buying at the wrong time. Be aware that dollar-cost averaging does not assure a profit or protect against loss in a declining market. Such a plan involves continuous investment in securities regardless of fluctuating price levels. An investor should consider his/her financial ability to continue his purchases through periods of low price levels. These examples are hypothetical and are not intended to imply the performance of any specific John Hancock Fund.
A: A stock that goes up = $13,360
Jan $80.00 12.5
Feb $81.97 12.2
Mar $84.75 11.8
Apr $84.03 11.9
May $86.96 11.5
Jun $91.74 10.9
Jul $90.09 11.1
Aug $94.34 10.6
Sep $96.15 10.4
Oct $95.25 10.5
Nov $98.04 10.2
Dec $100.00 10.0
TOTAL 133.6
Start price: $80.00
End price: $100.00
Average price per share: $ 90.25
Average cost per share: $ 89.80
$70
$80
$90
$100
$110
J an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
$100$1,000 invested monthly
# of Shares Price
Dollar Cost Averaging
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17
These examples are for illustrative purposes only. Most investments generally fluctuate according to market conditions. Past performance is not a guarantee of future results. Dollar-cost averaging is the simple investment strategy of investing a consistent amount on a regular basis, usually monthly. By practicing dollar-cost averaging, you ensure that you’re buying fewer shares at a high price and more shares at a lower price, which is a goal among many investors. This may lower the average price you pay for an investment, while lowering the risk of buying at the wrong time. Be aware that dollar-cost averaging does not assure a profit or protect against loss in a declining market. Such a plan involves continuous investment in securities regardless of fluctuating price levels. An investor should consider his/her financial ability to continue his purchases through periods of low price levels. These examples are hypothetical and are not intended to imply the performance of any specific John Hancock Fund.
B: A stock that fluctuates = $15,600
Jan $110.00 9.1
Feb $91.74 10.9
Mar $84.03 11.9
Apr $75.76 13.2
May $68.03 14.7
Jun $59.88 16.7
Jul $54.95 18.2
Aug $64.10 15.6
Sep $75.19 13.3
Oct $86.21 11.6
Nov $91.74 10.9
Dec $100.00 10.0
TOTAL 156.0
Start price: $110.00
End price: $100.00
Average price per share: $ 80.17
Average cost per share: $ 76.90
$40
$55
$70
$85
$100
$115
J an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
$100$1,000 invested monthly
# of Shares Price
Dollar Cost Averaging
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18
Diversification
Bond6.97%
Large Cap Growth11.81%
Small/MidGrowth12.26%
Large Cap Value
19.69%
Large Cap Value
-15.52%
Large Cap Value
30.03%
Large Cap Value7.05%
Small/MidGrowth41.66%
Small/MidValue
20.79%
Small/MidValue9.74%
Bond10.25%
Small/MidGrowth46.31%
Small/MidValue
21.58%
International13.54%
International26.34%
International31.78%
Large Cap Value7.01%
Cash3.48%
Small/MidValue
-9.87%
International38.59%
Large Cap Value
16.49%
Small/MidValue7.74%
Small/MidValue
20.18%
Cash5.94%
Large Cap Value
-5.59%
Small/MidGrowth14.59%
Cash0.15%
International-14.17%
Small/MidGrowth-10.83%
International-15.94%
Large Cap Growth29.75%
Large Cap Growth6.30%
Large CapGrowth5.26%
Large Cap Growth9.07%
Small/MidValue
27.68%
Small/MidGrowth-16.09%
Large Cap Growth-20.42%
Large Cap Growth-27.88%
Bond4.10%
Bond4.34%
Cash3.07%
Cash4.67%
Bond5.93%
Large Cap Growth-22.42%
International-21.44%
Small/MidGrowth-29.09%
Cash1.03%
Cash1.38%
Bond2.43%
Bond4.33%
Large Cap Growth37.21%
Bond11.63%
Bond8.44%
Cash1.61%
Small/MidValue
44.93%
International20.25%
Small/MidGrowth8.17%
Large Cap Value
22.25%
Small/MidGrowth9.69%
Large Cap Value
-0.17%
Cash4.40%
International11.17%
Small/MidValue
-7.27%
Large CapValue
-36.85%
Bond5.24%
Small/MidValue
-31.99%
Large CapGrowth-38.44%
Small/MidGrowth-41.50%
International-43.38%
Cash1.40%
Best
Wors
t
20082000 2001 2002 2003 2004 2005 2006 2007 2009
DiversifiedPortfolio-2.21%
DiversifiedPortfolio-6.68%
DiversifiedPortfolio13.93%
DiversifiedPortfolio27.32%
DiversifiedPortfolio-14.68%
DiversifiedPortfolio32.29%
DiversifiedPortfolio7.37%
DiversifiedPortfolio15.74%
DiversifiedPortfolio5.37%
DiversifiedPortfolio-31.15%
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Asset Allocation
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20
Rebalance Your Account
Target Allocation Drifting Allocation
Suppose over time, stock investments increase 80% while bond investments return only 5%.
To maintain the same goal of a 50-50 target, this investor will need to rebalance.
Diversification does not guarantee against a loss, and there is no guarantee that a diversified portfolio will outperform a non-diversified portfolio. The above target allocation is merely a hypothetical example to illustrate the concept of rebalancing. It is not intended to represent a suggested investment mix, nor should it be considered a recommendation of any kind.
Model Portfolios Automatically rebalances January 1st and July 1st.
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Questions
21
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22
Resources
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Investment Options
Foreign/ GlobalEmerging
Mkts.Target Date
FundsMoney Market
•Artio Intl Equity•Masters Select Intl
DFA Emerging Markets
•Fidelity Freedom Income
•Fidelity Freedom 2010 - 2030
Fidelity Cash Reserves
Value Blend Growth
T. Rowe Price
Equity
Vanguard 500 Index
• AmFunds Growth
• Masters Select
Large Cap
First Eagle Fund
Westcore Select Mid Cap
Royce Total
Return
Royce 100 Invmt
Small Cap
Miscellaneous Categories
Domestic Equity Fixed-Income
Long Medium Short
Pimco Total Return
Pimco Low
Duration
High Quality
Mid Quality
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24
Fund Performance (9/30/10)
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Investment Related Questions Mike van der Velden (206) 676-5680 or (800) 767-0650 Ex 65680
email: [email protected]
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Disclosure Statement - Confidentiality
These materials are produced by Kibble & Prentice for the sole use of its clients, prospective clients, and their representatives. Certain information contained in these materials are considered proprietary information created by Kibble & Prentice and/or their licensed and appointed insurance carriers. Such information and any insurance designs furnished by Kibble & Prentice are considered “Confidential Material.” Such information shall not be used in any way, directly or indirectly, detrimental to Kibble & Prentice and clients and/or potential clients and any of their representatives will keep that information confidential.
Neither Kibble & Prentice nor any of its respective representatives or advisors has made or makes any representation or warranty, expressed or implied, as to the accuracy or completeness of the Confidential Material. Neither Kibble & Prentice nor their respective representatives or advisors shall have any liability resulting from the use of the Confidential Material or any errors or omission therein. These materials contain confidential information and provide general information for the use of our clients, potential clients, or that of our clients’ legal and tax advisors. Only a qualified attorney may prepare any document needed to implement any strategy explained in these materials, and the agent/broker or advisor is not in the business of practicing law, legally representing clients, or drafting legal documents.