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32VOLUME 23 | EDITION 05

COVER_WOR32_092214_ds.indd 1 9/22/14 8:03 PM Radnor, PA Leading Wealth Advisor

The Haverford Trust Company Joseph J. McLaughlin Jr., Chairman, Chief Executive Officer; Binney H.C. Wietlisbach, President; Henry B. Smith, Chief Investment Officer, Director; John H. Donaldson, CFA®, Vice President, Director of Fixed Income; Timothy A. Hoyle, CFA®, Vice President, Director of Research

What can control?

By The Haverford Trust Company

Geopolitical risks abound: help of a trusted advisor) which While investors cannot com- Russia/Ukraine, Israel/Hamas, takes into consideration their pletely avoid fees and taxes, Iraq/ISIS, Iran’s nuclear capa- objectives, needs and risk tol- they can certainly make choices bility, Syria’s civil war, China’s erance. Proper asset allocation that help mitigate those return- flexing of its naval power, etc. increases the odds of remaining destroyers. This doesn’t mean Layered on to these risks is invested for the long term. low-cost products are always the unprecedented challenge But investment success is the best way to invest. Some- faced by the Fed to successfully more likely achieved by the times you pay for what you unwind the enormity of the mon- length of time invested in the receive. But there is no reason to etary stimulus it’s created over market rather than by market choose a high-cost active man- the past five years. What should timing. An with a suit- ager who is esentially a closet- investors do? able asset allocation is more indexer, when one can purchase While these headlines are likely to stay invested through- a low-cost index fund or ETF. virtually impossible to ignore, out market cycles. Investors with taxable assets investors should nevertheless Beyond asset allocation, inves- should pay attention to the after- focus on the things they can tors can control their invest- tax return on their investments. control. They cannot control ment selections. For example, Excessive or unnecessary turn- geopolitical events; they cannot with respect to equities, inves- over (particularly short-term control exogenous risks (natural tors control whether to invest trading) which leads to large cap- disasters, wars, etc.); they can- domestic or international stocks: ital gains taxes depletes wealth. not control the stock market or large versus small, value versus The bottom line is that while the direction of interest rates. growth, dividend payers versus it is unrealistic to ignore global Perhaps abetted by business nonyielders and speculative ver- and domestic events and the programming airing on such TV sus quality. These decisions can direction of the market, investors channels as CNBC and Bloom- be implemented with individual are better off paying more atten- berg, investors seem obsessed securities, mutual funds, ETFs tion to the things they actually with the near-term direction of or money managers. The same can control. Proper asset alloca- the markets, over which they is true for fixed income choices. tion, appropriate investments, have no control. It should go without saying, lower fees and reduced taxes So, what can investors con- though, that just because some- are some of those things. And trol? First and foremost, they one has a choice in what to buy, more time spent paying atten- can construct the appropriate that does not mean it will go up tion to those factors is what will asset allocation (often with the in price. benefit investors.

The opinions expressed in this article are those of Haverford. Views and security holdings are subject to change at any time based on market and other conditions. This article is for informational purposes only and should not be construed as investment advice or recommendations with respect to the information presented. No forecasts are guaranteed and past performance is no guarantee of future results. Investments in securities are not FDIC-insured, are not guaranteed and may lose value. Investments in securities are not FDIC insured, are not bank guaranteed, and may lose value. live grow make The haverford TrusT Company 153

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The Haverford Haverford The reach to How Company Trust . at 610.995.8700 We can be reached wor

Compensation Method Asset-based fees Primary Custodian for Investor Assets The Haverford Trust Company Professional Services Provided Money and investment advisory services, including: strategy development, written investment policy, asset allocation, asset management, performance reporting and tax-efficient strategies Email [email protected] Website www.haverfordquality.com

Assets Under Management None required Minimum Investable Assets $1 million Largest Client Net Worth 75 $7.4 billion* billion* $7.4 Minimum Fee for Initial Meeting $250 million (firm) Number of Team Members The Haverford Trust Company Three Radnor Corporate Center, Suite 450, Radnor, PA 19087 610.995.8700 The Haverford Trust Company Three Radnor Corporate Center, Suite 450, Radnor, PA 19087 *Assets under management or consultation as of December 31, 2013.

About The Haverford Trust Company highly personalized investment management services based on our The Haverford Trust Company provides Quality Investing approach. Refined over three decades, Haverford’sQuality Investing strategy is committed risk throughout the entire market cycle. Adhering to this consistent, to maximizing returns while minimizing our inception in 1979, Haverford has enabled our client base and assetssuccessful investment philosophy since exceed $7.4 billion.*under management to continually grow. Today, assets under management or consultation gives us the flexibility to We take pride in the fact that we are privately owned and believe that independence better serve our many clients, whether individual or institutional. Seated, left to right: Binney H.C. Wietlisbach, Henry B. Smith, Joseph J. McLaughlin, Jr.; standing, left to right: John H. Donaldson, Timothy A. Hoyle

—The Haverford Trust Company Trust —The Haverford “While it is unrealistic to ignore global global ignore to is unrealistic it “While direction the and events domestic and off better are investors market, of the things the to attention more paying control.” can actually they

ILLUSTRATION EVIN k y B SPROULS Joseph J. McLaughlin, Jr. Chairman & Chief Executive Officer

Binney H.C. Wietlisbach President

Henry B. Smith Chief Investment Officer & Director

John H. Donaldson, CFA® Vice President & Director of Fixed Income

Timothy A. Hoyle, CFA® Vice President & Director of Research

The Haverford Trust Company Three Radnor Corporate Center, Suite 450 Radnor, PA 19087 Tel. 610.995.8700

[email protected] www.haverfordquality.com

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