Welcome to TERRIL & CO.

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.

Fundamentals foremost; patient, often contrarian investing

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.

Seeking 3X the reward for risk assumed

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.

Targeted annual return goal

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.

Fee scale reflects total return sensitivity

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.

Fee scale

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.

Clients receive an easy-to-understand, two-page investment performance report every quarter. The report clearly presents eight key financial metrics.

  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 the quarter
  6. Portfolio gain or loss during the quarter (expressed in U.S. dollars)
  7. Five-year history of quarterly rates of return (deposits and withdrawals time-weighted)
  8. Annual rate of return (after four quarters)

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.

Quarter Ending December 31, 2020
Equities 55.80%
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
Other 4.55%
50 Ounces Gold 98,308
Cash Equivalents 12.22%
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

Deposit 12/22/2020 $3,000
Balance 9/30/2020 $1,938,299
Gains from Investment** $218,381
*Abraham Lincoln Family Trust is a fictitious name to protect the confidentiality of an actual client and is representative of a typical account that Terril & Company manages with a balanced investment objective.
** Gain or loss from investment is net of any fees and includes the reinvestment of earnings.
Five Year Performance
Abraham Lincoln Family Trust ^
December 31, 2020
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

First performance reported March 31, 1988.
* Taxable Equivalent

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%*

^ Abraham Lincoln Family Trust is a fictitious name to protect the confidentiality of an actual client.

** 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.

Written Blog: Thoughts on the Economy

Wednesday, March 31, 2021

The first quarter economic data of 2021 continues to point towards a major economic recovery around the world. By design, your portfolio is invested in many issues tied directly to the recovering economy. Last year saw investors go overboard on high-tech glamour issues - companies making little if any money and generating no positive cash flow. This year the markets are rewarding investments in companies with real profits, cash flow and dividends. We continue to like bank stocks, energy, gold mining, fertilizer, and pharmaceutical issues among others.

This year, interest rates and inflation are also on their way back up. Most fixed income investments are down sharply for 2021. The negative returns are close to double digits depending upon duration. We believe bonds will continue to be a “bubble” market in 2021. Traditional fixed income investments have the potential to drop by as much as 15% to 20% by year end. You may notice your fixed income holdings are almost all “floating rate” issues avoiding this risk. We also have large money market balances at quarter end. This is not a permanent home but more of a safe port in the storm.

Higher inflation and runaway government spending are currently our biggest worries. We are monitoring the same and will act when necessary.

A special thank you for your understanding of the past year. The pandemic brought unprecedented downward moves in economic growth and, for a while, investment prices. Interest rates also plunged to 0%. We managed portfolios throughout the last twelve months with discipline while also taking advantage of markets underpricing value stocks. This approach is the reason your portfolio(s) have fully recovered and are now at “new high-water marks”.


Client Security/Privacy

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.

Registered with SEC

“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.