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

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%
  • 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.
Current OUTLOOK
  • In Print
  • On Video
Current Outlook

November 17, 2017

Our expectations as we move towards the end of 2017.

World/USA economic growth: Higher. Continuing to improve especially in Europe, India and Japan. USA growth for 4th quarter close to 3.5%. Averaging 3.5% or maybe even 4% in 2018. More competition around the world results in governments forced to cut regulations and taxes.

Commodity prices: for 10 years or more prices have fallen. That’s over with. Commodity prices are now moving higher. This is likely to continue for the next 18 months or more. In the last 10 years many mines closed, and overall supplies of most commodities are lower. Demand is moving higher due to economic growth. Oil prices will average close to $60 per barrel in 2018.

Inflation: Higher. In the 2.5% range currently in the USA, 3% or higher in Japan and approaching 3% in Great Britain. Moving towards 3% or higher in the USA in 2018. Higher labor costs after years of no pay increases. Higher cost of money as interest rates move up. Higher costs of personal services such as insurance, accounting etc. Higher costs of materials. Central bankers around the world printed money to deal with liquidity issues dating back to 2008. The value of money (what will it buy?) is beginning to fall due to the lack of productivity behind printed money.

Interest rates: Higher. As inflation moves up Central bankers will be forced to act to raise interest rates to defend the value of their respective currencies. Zero percent interest rates in Japan are not sustainable with inflation in the 3% range. Ten-year interest rates in Europe are not sustainable at levels of 3/8 of 1% to 1.75%. The Federal Reserve Bank in the U.S. is committed to removing 2 TRILLION in reserves from the banking system. This is their effort to get rid of half of the 4 TRILLION in dollars printed since the 2008 crisis. With the economy picking up steam and inflation moving higher the Fed will be forced to raise short term interest rates up to the 2.5%/2.75% area. If they don’t, inflation will keep moving higher. The U.S. ten-year yield is being subsidized by the crazy low rates in Europe. As the rates in Europe are set by market forces and not the European Central Bank, rates in Europe will move significantly higher. Once in a lifetime low, low, low interest rates around the world are over. The ability of Central Bankers of the G-12 nations to keep them low is also over. Ten-year interest rates in the U.S. will move up closer to 4% in the next 18 months.

Bond prices: A bubble waiting to happen. As world rates move up bond prices will get creamed.

Stock prices: Lower. The growth in corporate earnings will slow as expenses increase due to inflation. The price of a stock is a multiple of the earnings. Currently this is close to 20 times earnings. This represents a 5% earnings yield. When interest rates move up investors are likely to want a 6% or 6.5% earnings yield. This could lower the earnings multiple to still high 17 times. If that small change occurs the market drops 15%. For many years now, stocks benefited from the TINA effect. (There is no alternative). As commodity prices move up, interest rates move up an alternative to stocks will begin to exist.

Thoughts on the Interest Rates and the Stock Market
Investment PICKS
DJI 23,163.04 GVT10YR 2.32 S&P500 2562.10
DJI 23,163.04
GVT10YR 2.32
S&P500 2562.10
  • 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.
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. 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.
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. 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