Terril & Company is an independent wealth management company founded in 1979 by John “Joe” Terril. Since then, referrals from satisfied clients and third-party professionals have fueled virtually 100% of its growth.
The company takes a highly personal approach to serving clients, which typically include high net worth individuals, trusts and private/corporate retirement plans.
Members of the Terril staff answer their own phones and truly offer close, personal service.
The investment selections Terril makes are based solely on their potential to produce positive, long-term returns for clients. The firm derives 100% of its revenue from client fees and 0% from commissions tied to the sale or purchase of securities.
Recognizing that “bandwagon” investing and playing momentum historically result in catastrophic losses, Terril & Co. searches for investments with characteristics or catalysts not fully appreciated by markets. As a long-term investor (usually three years or more) Terril will hold out-of-favor investments until positive change in their fundamentals becomes evident. While Terril hunts for unrecognized investment opportunities, it stows investor capital in liquid short-term investments to produce income and protect principal.
Terril & Co. believes that its willingness to make disciplined investing decisions apart from “the crowd” is central to its success. Why? Because many professional money managers chase performance and buy the ”hot” investment trends of the day.
Psychologically, it’s far easier for managers to buy the investments their peers are buying because being wrong with “the crowd” is more comfortable than being wrong while standing alone.
Many investors – professionals included – are apt to underestimate investment risk. In bull markets, they are eager to buy more of what is high in price. They tend to manage to performance benchmarks and are more inclined to expand risk boundaries. In bear markets or with out-of-favor assets, their evaluations often fail to reflect the truism that many times, when an investment is low in price, significant financial risk is already eliminated.
Terril & Co. seeks to manage risk by searching for investments with the minimum long-term potential to return three times the reward for the risk assumed.
It evaluates all forms of potential investments: equities and fixed income (domestic/foreign); preferred stocks (convertible/straight); commodities; exchange traded funds (ETFs); precious metals; MLPs and GPs of exchange-listed energy infrastructure trusts; real estate investment trusts (REITs); venture capital; and private placements.
Terril’s disciplined approach helps to remove emotion from investment decision-making. It tends to buy when the price reaches a favorable risk/reward threshold, which can lead Terril to being lightly exposed to markets that it believes are over-valued. The firm’s independence also frees it to take profits in successful investments when peers fear being underinvested.
Year to year, Terril & Co. seeks to generate 3% to 5% real growth (over and above inflation, taxes and fees) in client portfolios. Historically, wealth managers who consistently deliver investment returns in this range are rated in the top tier of investors.
Terril’s standard for acceptable investment return differs markedly from that of industry-driven money managers. In a year when the S&P 500 declines 21%, those managers are pleased to report a 17% loss to clients.
Conscientious cost control and an equitable fee structure help boost the net return to clients. Fees, calculated and billed quarterly, are entirely negotiable. Terril does not bill in advance. An advisory contract can be cancelled at any time without penalty.
The firm derives 100% of its revenue from client fees. It does not charge or accept any type of commission or other compensation for the sale or purchase of securities.
Market value of managed assets | Annual fee as a percentage 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% |
*Illustration: Presuming the negotiated fee to manage a $1 million portfolio is 0.75%, the cost to the client 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.
If your performance report sparks a question, please call. Your call will be answered by one of our professionals who is eager to help.
Terril also welcomes client meetings to discuss investment performance and strategy.
To review a sample quarterly report, click here.
500 | Coherent Inc. | 75,010 |
500 | Qualcomm Inc. | 76,170 |
750 | Starbucks Corporation | 80,235 |
1,000 | Merck & Co. Inc. | 81,800 |
1,200 | iShares MSCI Emerging Markets | 62,004 |
1,250 | Truist Financial Corporation | 59,913 |
1,400 | Bristol-Myers Squibb Co. | 86,842 |
1,500 | Citigroup Inc. | 92,490 |
1,500 | Newmont Mining Corp. | 89,835 |
1,750 | Delta Air Lines, Inc. | 70,368 |
1,750 | Verizon Communications | 102,813 |
2,000 | Nutrien Ltd. | 96,320 |
2,200 | Marathon Petroleum Corp. | 90,992 |
3,500 | Bausch Health Companies | 72,800 |
8,000 | Plains GP Holdings L.P. | 67,600 |
140 | US Bancorp Series A Pfd FLT 3.5% | 135,239 |
5,500 | Ally A FLT 6.007% | 148,775 |
25,000 | Aberdeen Asia-Pacific Income Fund | 111,250 |
100,000 | Ford Motor Credit FLT 1.29575% 08/03/2022 | 97,250 |
150,000 | Int'l Lease Fin FLT 3.23% 12/21/2065 | 99,750 |
50 | Ounces Gold | 98,308 |
100,000 | General Motors Financial Corp. 4.2% 03/01/2021 | 100,300 |
Bank Trust Department Money Market | 157,680 | |
Accrued Dividends Earned | 4,176 | |
Accrued Interest Earned | 1,760 |
CURRENT TOTAL | $2,159,680 |
---|
Quarter Ending: | 2016 | 2017 | 2018 | 2019 | 2020 |
---|---|---|---|---|---|
March | -4.38% * | 3.31% * | -0.87% * | 7.59% * | -23.25% * |
June | 2.48% * | 1.88% * | -0.46% * | 1.55% * | 12.48% |
September | 4.79% * | 2.19% * | 0.45% * | 1.52% * | 3.45% |
December | 5.87% * | 1.75% * | -10.72% * | 5.90% * | 11.26% |
Annual | 8.71% * | 9.44% * | -11.51% * | 17.46 | -0.64 |
2015 | -6.4% * | 2010 | 17.06% * | 2005 | 1.56% * | 2000 | 23.88% * | 1995 | 13.90% * | 1990 | 8.04%* |
---|---|---|---|---|---|---|---|---|---|---|---|
2014 | 6.00% * | 2009 | 23.55% * | 2004 | 2.41% * | 1999 | 0.56% * | 1994 | 0.36%* | 1989 | 16.36%* |
2013 | 13.45% * | 2008 | -1.42% * | 2003 | 15.11% * | 1998 | -1.65% * | 1993 | 4.08% * | 1988 | 5.05% * |
2012 | 10.91% * | 2007 | 5.65% * | 2002 | 3.21% * | 1997 | 13.76% * | 1992 | 9.93%* | ||
2011 | -1.19% * | 2006 | 9.33% * | 2001 | 8.56% * | 1996 | 7.02% * | 1991 | 20.55%* |
** 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. |
Friday, March 13, 2020
Prices for stocks and some bonds are now attractive. The sell off in banks, energy, airlines and basic industries such as chemicals is overdone. Markets are as “illiquid” as any time in history. Price movements are now driven by loans to hedge funds and others being called by banks. It becomes forced selling.
This started with many, us included, underestimating the ability of the world public to panic over the corona virus. The damage to the world economy is real. The damage is also self-inflicted. We believe in the next 4/6 weeks the panic will end and we will slowly return to business as usual. This return to normal has incurred in China and South Korea. This tells us the world recession will probably be shallow and short-lived.
We are waiting, trying to determine when the “forced selling” and panic selling is over, or close to over. At that time, we will be increasing our equity positions from approximately 35% to 50/55%. Dividend yields far exceed yields on bonds. The Fed will most likely keep rates at the current unprecedented low levels even after the crisis is over. Stock dividend yields are attractive.
There are some that believe the panic over the virus will continue for the balance of 2020 and well into 2021. We disagree. They see the world going into a severe recession or near depression. We disagree. The world dealt successfully with Asian flu, Hong Kong flu, swine flu and others. It will handle the Corona virus.
1/28/2021 2:29:45 PM
Better US-China relations one key to health of 2021 markets
More...Terril applies physical, electronic and procedural safeguards that meet industry standards for client security. It does not warehouse sensitive data (such as social security numbers) in its firewall-protected computer network. Its office is video-monitored 24/7.
All client communication, including your name, contact information and questions, is kept strictly confidential and made available only on a “need to know” basis to members of our staff. Click here to read our privacy policy.
“Terril and Company” is the operating name for Terril Brothers, Inc., an SEC registered investment advisor and a corporation wholly owned by John “Joe” Terril. Click here to view a copy of the firms SEC registration. “Click here to read Form CRS”. If you would like a paper copy of the firm’s registration statement, please call.