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 33 STATES
Clients in 33 states
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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 Brian Curtis
    Brian Curtis
    Chief Information Officer
    briancurtis@terrilco.com
    BIO
  • portrait of Max Schmitz
    Max Schmitz
    Associate
    mschmitz@terrilco.com
    BIO
  • portrait of Cindy Koehler
    Cindy Koehler
    Associate
    cindykoehler@terrilco.com
    BIO
  • portrait of Jie Fan
    Jie Fan
    Associate
    jiefan@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%
Conscientious cost control and an equitable fee structure help increase net returns to Terril & Co. clients. Fees, which are negotiable, are calculated and billed quarterly. Terril does not bill in advance. Advisory contracts can be cancelled at any time without penalty.
*Illustration: Presuming the fee to manage a $1 million portfolio is 0.75%, the cost is $7,500 on an annual basis. If a client can earn 5% self-managing a portfolio, Terril & Co. needs to earn 5.75% to justify its involvement.
  • 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 December 31, 2016
Equities 39.87%
500 Biogen Inc. 130,605
2,000 Bristol-Myers Squibb Co. 116,880
2,200 Citigroup Inc. 130,746
4,000 Plains GP Holdings L.P. 138,720
6,000 Bank of America Corporation 132,600
10,000 ClearBridge Energy MLP Opportunity Fund 131,100
Taxable Fixed Income 38.49%
25,000 Aberdeen Asia-Pacific Income Fund 115,750
3,500 Ally A FLT 6.4022% 88,900
3,800 Barclays Bank PLC 7.1% 96,444
250 State Street Cap Trust IV Pfd FLT 1.96344% 221,250
150,000 Int'l Lease Fin FLT 4.67% 12/21/2065 131,250
100,000 United Technologoies Corp 1.778% 05/04/2018 100,000
Tax-Free Fixed Income 5.71%
95,000 Chicago Water Rev 5.25% 12/1/2032 111,815
Other 3.09%
50 Ounces Gold 60,428
Cash Equivalents 12.85%
75,000 Columbus OH Swr Rev 5.0% 12/1/2017 77,363
Bank Trust Department Money Market 171,865
Accrued Dividends Earned 875
Accrued Interest Earned 722
Accrued Tax-Free Interest Earned 728
CURRENT TOTAL $1,958,041
Deposit 12/04/2016 $3,000
Balance 9/30/2016 $1,846,594
Gains from Investment** $108,447
*Abraham Lincoln Family Trust is a fictitious name being used to conceal the identity of an actual client. The portfolio composition is representative of a typical “balanced” account managed by Terril & Co.
** Gain or loss from investment is net of any fees and includes the reinvestment of earnings.
Five Year Performance
REVIEW BY QUARTERS
Abraham Lincoln Family Trust ^
December 31, 2016
Quarter Ending: 2012 2013 2014 2015 2016
March 6.79% * 6.86% * 2.55% * 1.20% * -4.38% *
June -1.78% * 1.66% * 4.81% * 0.91% * 2.48% *
September 4.50% * 0.50% * 0.95% * -7.37% * 4.79% *
December 1.19% * 3.91% * -2.31% * -1.05% * 5.87% *
Annual 10.91% * 13.45% * 6.00% * -6.40% * 8.71% *
First performance reported March 31, 1988.
* Taxable Equivalent
2011 -1.19% * 2006 9.33% * 2001 8.56% * 1996 7.02% * 1991 20.55%*
2010 17.06% * 2005 1.56% * 2000 23.88% * 1995 13.90% * 1990 8.04%*
2009 23.55% * 2004 2.41% * 1999 0.56% * 1994 0.36% * 1989 16.36%*
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% *

^ Abraham Lincoln Family Trust is a fictitious name being used to conceal the identity of an actual client. The portfolio composition is representative of a typical “balanced” account managed by Terril & Co.

** The above performance are the actual results of a $5-$10 million retirement plan under our management, is net of any fees and includes reinvestment of earnings, and is managed with a balanced investment objective; results were achieved with the following asset ranges: Equities 0-50%; Fixed Income 15-95%; Cash Equivalents 0-80%; and Other 0-10%. We believe the above to be indicative of our average historical results. However, such results are not guaranteed. Future results may be materially different. It is possible for accounts to lose money.
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Current OUTLOOK
  • In Print
  • On Video
2
Jun
Current Outlook

As summer begins the markets are at record highs. This includes both stocks and bonds. A major reason for this is the current belief that interest rates "are not" going up. We disagree. Inflation is higher and moving up. This will force the Fed’s hand in raising interest rates. The Fed is also committed, later this year, to reducing the size of its balance sheet. In simple English, this means they will be a seller of bonds for the first time since the liquidity crisis of 2008/2009. This will also put upward pressure on interest rates. Stocks selling at close to 20 times earnings are at their tops. ETF's which are no thought packaged portfolios are driving prices higher. Retail investors are fueling this activity. Today, any discussion of investments needs to mention the current craze over a few technology stocks. This list includes Amazon, Apple, Netflix, Tesla, Google, Facebook. This enthusiasm for the glamour tech stocks reminds us of the "nifty fifty" debacle of the late sixties and early seventies. The thinking then was you should buy the tech glamour stocks and never sell them. They were going to change the world and grow forever. Two years later they were down in price by 90%! Many of the nifty fifty went broke. Please note Netflix and Tesla generate no positive cash flow. They are eating cash at the rate of billions of dollars per quarter. The late nineties also saw a tech bubble. It popped in March of 2000. We see this current tech stock craze ending just as badly. The assumption that the companies will never face competition is severely flawed. ”Late stage bull markets have a way of making pure speculators look like astute money managers”.

We continue to hold energy infrastructure issues. The 9% distribution rates are attractive while we wait to see if onshore energy production will continue to replace deep water production. Bio-Tech and pharmaceuticals are attractive at current prices. Large cap financials are also attractive. They are on sale now as many investors believe interest rates will never go up and therefore their net interest margins will never increase. We disagree. Later this month the banks will be announcing major increases in cash dividends and stock buy-back programs.

PAST THOUGHTS
18
May
Outlook on the Interest Rates, the Economy,Technology and World Markets
PAST THOUGHTS
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Investment PICKS
DJI 21,467.14 GVT10YR 2.15 S&P500 2437.10
DJI 21,467.14
GVT10YR 2.15
S&P500 2437.10
  • Liked
  • Disliked
Investments We Like
Money Center Banks: Citigroup Inc. (C); JPMorgan Chase & Co. (JPM); Bank of America (BAC); Wells Fargo & Co. (WFC): The capitalization of large money center banks is the best in history. Profits are setting records in a terrible banking environment. Any pick up in the world economy will only make the profits even higher. Investors can look forward to the banks beginning the process of returning excess capital to the shareholders through cash dividends and stock buybacks.
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.
DJI
S&P
Investments We Like
Investments We Don't
Money Center Banks: Citigroup Inc. (C); JPMorgan Chase & Co. (JPM); Bank of America (BAC); Wells Fargo & Co. (WFC): The capitalization of large money center banks is the best in history. Profits are setting records in a terrible banking environment. Any pick up in the world economy will only make the profits even higher. Investors can look forward to the banks beginning the process of returning excess capital to the shareholders through cash dividends and stock buybacks.
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.
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Terril & Co.
IN THE NEWS
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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

Introduction

Our Team

Sample Quarterly Reports

Investment Philosophy

Approach to Service

Contact Us
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. The company is a SEC registered investment advisor. 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.
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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 E-mail




A Registered Investment Advisor
“Terril & Company” is the operating name for Terril Brothers, Inc., a corporation wholly owned by John “Joe” Terril. The company is a SEC registered investment advisor. 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