An INTRODUCTION

Founded by John “Joe” Terril in 1979, Terril & Company is an independent wealth management company that derives 100% of its revenue from client fees and 0% from commissions tied to the sale or purchase of securities.

The investments Terril & Co. makes for the high net worth individuals, trusts and private/corporate retirement plans it serves are made solely on their potential to produce positive, long-term returns for clients.

The primary sources of new business for the company remain personal referrals from satisfied clients and third-party professionals. The staff of Terril & Co. is gratified that the customer experience it strives to create continues to produce unsolicited endorsements.

Assets under management

Clients in 30 STATES
Clients in 30 states

Terril & Co. APPROACH

  • Philosophy
  • Team
  • Client Service
  • Fee Scale
  • Sample Quarterly Report
  • Fundamentals
  • Value or Growth
  • Decisions
  • Annual Return Goal
An Investing Approach
BASED ON FUNDAMENTALS
The approach of Terril & Co. to investing begins with a careful assessment of risk vs. reward. It seeks to manage risk by selecting investments that, in its view, have the long-term potential to return three times the reward for the risk assumed. Terril & Co. investigates all forms of potential investments on behalf of clients – equities and fixed income (domestic and foreign), preferred stocks (convertible and straight), commodities, exchange traded funds (ETFs), precious metals, MLPs and GPs of exchange-listed partnerships in energy infrastructure trusts, real estate investment trusts (REITs), venture capital and other private placements.
Value or Growth:
SEEKING A CATALYST
Investing on Wall Street is often trend-driven. Many times, the “follow the leader” mentality leads investors (including professional money managers) to pay too high a price when buying or to sell in a panic. Consequently, the most frequent outcome of following “group think” is investment underperformance.
At Terril & Co., the opposite is true. Joe Terril and his investment staff constantly hunt for investments with characteristics or catalysts not appreciated by most investors. Perhaps earnings growth is not accurately factored into the price, or the asset value and cash generating potential of an investment is being underestimated. In another case, the dissection of a balance sheet may reveal an asset with hidden value.
As a long-term investor (usually three years or more) Terril & Co. is willing to wait until the positive, long-term fundamentals of an out-of-favor investment surface. Its fundamental approach to investing looks for change – be it in the economy, technology or in interest rates – that will boost market value. For instance, a company may need more time to improve its cash flow or to grow market share. Or, a company may have “hidden” assets that need time to emerge and be factored by the market. Terril seeks to capitalize on special situations – but only at the proper price. Until the level of risk reaches its investment threshold, Terril & Co. utilizes short-term liquidity investments to produce income and protect principal.
Decisions Based On
FACTS, NOT EMOTION
Terril & Co. believes that discipline – or more precisely, the courage to invest apart from “the crowd” – is key to its past and future investment success. Too often, professional money managers become enamored with investments that temporarily top the popularity charts.
Why?
First, most people are susceptible to herd mentality. It’s much easier to buy the investments that everyone else is buying. Second, money managers know that being wrong with “the crowd” generally won’t cause clients to dismiss them. If they are wrong, alone, it may be a different story. Third, individuals chronically and grossly underestimate investment risk. In bull markets, they are drawn to buy more of what is already high in price. Conversely, in bear markets or with out-of-favor investments, they find it difficult to summon up the courage to buy what is low in price.
The firm’s disciplined approach removes emotion from the investment equation. It has learned that excellent long-term investments are often hidden from “the crowd.” Experience has taught Terril to buy only when the price reaches its threshold – which can lead it to being “under-invested” in markets that it believes are too richly priced. Terril & Co.’s independence also frees it to sell investments when others fear being underinvested. Terril concentrates on consistently earning solid rates of return in both bull and bear markets, recognizing that the ability to steadily compound earnings over the long term is a powerful wealth generator for clients.
The Annual
RETURN GOAL
Terril & Co. sets an absolute – not relative – annual return goal. This mindset is in sharp contrast to traditional index-driven money managers who in a year when the S&P 500 declines 23% find it acceptable to report an 18% loss to clients.
Consistent, positive performance is Terril’s goal. Its benchmark is to generate an annual rate of return 3% to 5% greater than the sum of inflation, taxes and fees. Wealth managers who achieve this level of performance over the long term exceed their peers.
  • portrait of Joe Terril
    Joe Terril
    Founder and President
    joe@terrilco.com
    BIO
  • portrait of David Carter
    David Carter
    Senior Portfolio Manager
    dave@terrilco.com
    BIO
  • portrait of Tricia Warner
    Tricia Warner
    Research Assistant
    tricia@terrilco.com
    BIO
  • portrait of Chanda Adair
    Chanda Adair
    Senior Administrator
    chanda@terrilco.com
    BIO
  • portrait of Brian Curtis
    Brian Curtis
    Chief Information Officer
    briancurtis@terrilco.com
    BIO
  • portrait of Noreen Adair
    Noreen Adair
    Associate
    noreen@terrilco.com
    BIO
Each Account
INDIVIDUALLY MANAGED
Terril & Co. understands that clients have singular goals for growth and income, varying tax situations and different thresholds for investment risk. So, it manages all accounts individually. It does not run common funds.
Person-to-Person
SERVICE
Personal service is a trademark of Terril & Co. Fellow human beings answer the phone and interact with clients. Clients are known by name. Meetings between clients and their Terril contact are encouraged. Also, when necessary, Terril & Co. professionals travel to the venue of choice of clients who live outside of metro St. Louis.
FEE SCALE
Market Value of Managed Assets
Annual Fee as a Percent of Managed Assets
Up to $1 Million
1.0%
$1 million to $3 million*
0.75%
$3 million to $5 million
0.6%
$5 million and above
0.5%
  • Quarterly Report Summary
  • Sample Quarterly Report
  • Five Year Sample
QUARTERLY REPORTS
Easy to Understand and Informative
All clients receive a detailed quarterly portfolio update that is clear and concise.

Shared are...
  1. Current total value of assets in portfolio
  2. Current asset allocation (expressed as a percentage of total portfolio)
  3. Bond call/put information and maturities
  4. Accrued dividends and interest
  5. Deposits and withdrawals made during quarter
  6. Portfolio gain or loss during the quarter (expressed in dollars)
  7. Five-year history of quarterly rates of return (deposits and withdrawals time-weighted)
  8. Annual rate of return (after four quarters)
Sample
QUARTERLY REPORT
ABRAHAM LINCOLN FAMILY TRUST
Quarter Ending September 30, 2013
Equities 37.03%
1,250 Kinder Morgan Management 93,700
1,750 Agilent Technologies 89,688
1,800 Citigroup 87,318
2,500 AT&T Corp. 84,550
4,000 Delta Air Lines, Inc. 94,360
5,000 Ford Motor Company 84,350
5,000 Weatherford International, Inc. 76,650
6,000 Bank of America Corporation 82,800
Taxable Fixed Income 34.69%
15,000 Aberdeen Asia-Pacific Income Fund 90,900
3,000 Deutsche Bank Pfd. 8.05% 79,920
3,300 Barclays Bank PLC 7.1% 82,500
50 Bank of America Conv Pfd. L 7.25% 54,063
75,000 Peabody Energy 7.375% 11/01/2016 84,375
100,000 Dominion Resources FLT 2.662% 9/30/2066 93,000
100,000 Int Lease Fin FLT 4.52% 12/21/2065 90,000
743 Southern Cal Edison FLT 4.08% 74,672
Tax-Free Fixed Income 7.32%
70,000 IN Highway Revenue 4.5% 12/1/2016 70,840
65,000 Columbus OH Swr Rev 5% 12/1/2017 66,300
Other 7.67%
50 Ounces Gold 68,200
4,500 JPMorgan Chase Warrants 2018 75,420
Cash Equivalents 13.29%
60,000 ArcelorMittal 5% 5/15/2014 61,050
70,000 Vodafone Group PLC 4.15% 6/10/2014 71,400
Bank Trust Department Money Market 98,544
Accrued Dividends Earned 8,458
Accrued Interest Earned 7,648
Accrued Tax-Free Interest Earned 1,659

CURRENT TOTAL $1,872,365

Deposit 8/24/2013 $10,000
Balance 6/30/2013 $1,853,100
Gains from Investment $9,265
Five Year Performance
REVIEW BY QUARTERS
Abraham Lincoln Family Trust
September 30, 2013
Quarter Ending: 2009 2010 2011 2012 2013
March -3.80% * 3.05% * 2.38% * 6.79% * 6.86% *
June 12.48% * -2.26% * 0.65% * -1.78% * 1.66% *
September 10.36% * 9.73% * -8.11% * 4.50% * 0.50% *
December 3.46% * 5.92% * 4.35% * 1.19% *
Annual 23.55% * 17.06% * -1.19% * 10.91% *
First performance reported March 31, 1988.
* Taxable Equivalent
2008 -1.42% * 2003 15.11% * 1998 -1.65% * 1993 4.08% * 1988 5.05% *
2007 5.65% * 2002 3.21% * 1997 13.76% * 1992 9.93% *
2006 9.33% * 2001 8.56% * 1996 7.02% * 1991 20.55% *
2005 1.56% * 2000 23.88% * 1995 13.90% * 1990 8.04% *
2004 2.41% * 1999 0.56% * 1994 0.36% * 1989 16.36% *
Current OUTLOOK
  • In Print
  • On Video
Current Outlook

Sometimes it is best to take a step back and try to see as much of the “big picture” as possible. I am constantly amazed at the amount of investment analysis I see, read and hear that misses the ‘macro’ story in favor of the smallest of ‘micro’ issues. A stock price falling 2 or more points in a day because a company’s profit margin fell from 27.6% to 27.2% is a classic example of what I call “micro mania”.

Currently there is a very important “big picture” going on. This “picture” is here to stay for now. There is more world capital available for investment, than the supply of quality investments. Said more simply, there is too much money chasing too few investments. An example of this is the recent fall in interest rates in government guaranteed bonds of Ireland, Spain, Italy and yes Greece. In some cases the rates are lower than the rate on U.S. Government Bonds. Chief investment officers and money managers in every part of the world are chasing after any investment that can offer income/yield. The flow of new world capital created every day is impressive. It comes from premiums paid to world insurance companies, funds saved in retirement plans, interest and dividend payments, corporate profits and the daily sales of millions of barrels of oil from the Middle East as a few examples. Some countries actually run budget surpluses. This creates sovereign wealth funds. Every day, all of this capital is looking for a place to invest. I believe the weak world economy of the last 5/6 years is not creating reasonable demand for capital. Europe’s economy is tepid for the 4th or 5th year in a row. The U.S. economy is just “okay”. Japan and others are struggling.

For the above stated reason I believe investment markets will stay strong. Despite the Fed tapering, interest rates are lower in the U.S. than the start of 2014. Equity markets are in the early stages of changing. Historically, stock markets are dominated by investors looking for growth. This type of investor is not going to disappear. However; there is a new investor beginning to emerge. This is the money manager from all corners of the world looking for income. They are new to equity markets. Previously they found their yield in bonds. They are now looking for good dividend paying stocks to provide this income.

We will continue to stay fully invested in investments offering income. This includes stocks with good cash dividends, MLP’s and GP’s on the NYSE and preferred stocks.

Outlook current events and expectations for March 2014
Investment PICKS
DJI 16,424.85 GVT10YR 2.637 S&P500 1862.31
DJI 16,424.85
GVT10YR 2.637
S&P500 1862.31
1
Jan
  • Liked
  • Disliked
Investments We Like
Agilent Technologies Inc. (A): Global leader in electronic test measurement and analytical instruments primarily for the communications, chemical analysis and life sciences markets. Agilent’s operating model generates free cash flow of $800 million to $1.4 billion year after year.
Investments We Don't
The historic rally in bonds that began in the 1980s is over. As interest rates rise moderately, most bonds will fall in price dramatically. We doubt that bonds will return any positive performance in the next three years. Floating rate securities are an exception to the previous statement. They should perform well.
1
Jan
Investments We Like
Investments We Don't


Agilent Technologies Inc. (A): Global leader in electronic test measurement and analytical instruments primarily for the communications, chemical analysis and life sciences markets. Agilent’s operating model generates free cash flow of $800 million to $1.4 billion year after year.
The historic rally in bonds that began in the 1980s is over. As interest rates rise moderately, most bonds will fall in price dramatically. We doubt that bonds will return any positive performance in the next three years. Floating rate securities are an exception to the previous statement. They should perform well.
Terril & Co.
IN THE NEWS
FAQs
  • Asset Custody
  • Asset Withdrawal
  • Quarterly Reports
  • Compensation
  • Video Briefing
Where are my
FINANCIAL ASSETS HELD?
Assets are held in custodial accounts established on behalf of clients at leading banks. The “third-party” structure offers clients maximum protection against investment fraud.
Is there a penalty for withdrawing assets being
MANAGED BY TERRIL & CO.?
No. Clients are free to withdraw assets or to terminate their relationship with Terril & Co. at any time without penalty just as Terril & Co. is free to terminate any client.
How often will I be updated on the
VALUE OF MY PORTFOLIO?
Investment performance reports are issued quarterly. Clients often comment how easy the reports are to understand.
How is
TERRIL & CO. COMPENSATED?
The fee scale shared on our website represents the sole source of compensation received by Terril & Co. As an independent wealth manager, we do not charge or accept commissions of any type contingent on the sale or purchase of securities.
Joe Terril shares investment and business philosophy in this
VIDEO BRIEFING.
an introduction video
Introduction
an introduction video
Our Team
an introduction video
Sample Quarterly Reports
an introduction video
Investment Philosophy
an introduction video
Approach to Service
CONTACT US
By Phone
1.800.767.0344
314.965.0344

314.965.7017 (fax)
By Mail
P.O. Box 31277
St. Louis, MO 63131

10777 Sunset Office Dr.
Suite 317
St. Louis, MO 63127
By Email
For More Information
A Registered Investment Advisor
“Terril & Company” is the operating name for Terril Brothers, Inc., a corporation wholly owned by John “Joe” Terril. Terril & Company is regulated by FINRA, the Financial Industry Regulatory Authority. The company is a registered investment advisor and is licensed with the Securities and Exchange Commission and with appropriate state agencies. Click here to review a copy of that registration.
References
Terril & Co. gladly furnishes references. Third-party referrals account for essentially 100% of our new client growth.
Privacy Policy
Terril & Co. keeps all client communications strictly confidential. Your name, contact information and questions remain private and are only viewed by firm professionals. Click here to review our privacy policy.
CONTACT US
By Phone

1.800.767.0344
314.965.0344

314.965.7017 (fax)
By Mail

P.O. Box 31277
St. Louis, MO 63131

10777 Sunset Office Dr.
Suite 317
St. Louis, MO 63127


A Registered Investment Advisor
“Terril & Company” is the operating name for Terril Brothers, Inc., a corporation wholly owned by John “Joe” Terril. Terril & Company is regulated by FINRA, the Financial Industry Regulatory Authority. The company is a registered investment advisor and is licensed with the Securities and Exchange Commission and with appropriate state agencies. Click here to review a copy of that registration.
References
Terril & Co. gladly furnishes references. Third-party referrals account for essentially 100% of our new client growth.
Your Privacy
Terril & Co. keeps all client communications strictly confidential. Your name, contact information and questions remain private and are only viewed by firm professionals. Click here to review our privacy policy