Portfolio Management Process

Developing and managing the right portfolios for our clients is one of our biggest priorities. We want you to get the results you desire so you can enjoy financial security and stability. To that end we utilize elements such as Equity Style Management and Portfolio Design. And we put a lot of time, effort, and energy into researching and selecting the right money managers to oversee all of your holdings.

Equity Style Management

Different investment styles emerged back in the early 1980s. Equity style describes how stock is selected for a particular portfolio. Each portfolio manager uses an equity style that is based on a certain investment philosophy which takes into account the fact that different stock categories will perform differently. There are two main equity styles: growth and value. Equity style may also distinguish between capitalization levels. That is, fund managers may choose a portfolio made up of “small-cap,” “mid-cap,” or “large-cap” stocks.

Capitalization

Capitalization or “cap” for short, is the market value of a company’s stock and gives a picture of the company’s size. Stock price alone does not determine how large or how small a company is. The market capitalization value is calculated by multiplying a company’s outstanding shares (those held by the public) by the share price. By classifying companies into their capitalization levels, investors and fund managers can determine growth potential.

Large-Cap

Companies with capitalization between $10 billion to $200 billion

Large, well-known companies like IBM; often referred to as “blue-chip” stocks

Lower risk

Mid-Cap

Those with capitalization between $2 billion to $10 billion

More volatile than large cap companies, but with offering moderate stability

Trade mostly on the New York Stock Exchange

Small-Cap

Companies with capitalization between $300 million to $2 billion

Usually new or young companies

Less stable than either large or mid caps and thus considered higher risk

Investment Management

There is no one right way to invest. We take each client’s individual circumstances into account and proceed to make decisions from that point. We consider it imperative to figure out what is just right for you. Together, we will work to identify your investment boundaries, define your goals, choose the right financial vehicles, find the appropriate money managers, and create a portfolio designed to meet your objectives.

Portfolio Design

Creating the right portfolio, one that encompasses the right mix of assets to suit your objectives, and your tolerance for risk is crucial. Diversifying your holdings is one of the most important factors to keep in mind if you want to achieve the right returns. And periodic readjustments of your portfolio in response to changing economic or business conditions is also considered advisable.
Asset allocation is universally considered to be the one most important determination of your portfolio’s long-term performance and risk. StateTrust helps you clarify financial goals, risk tolerance, economic conditions, and legal accountability in order to create the best portfolio to meet your essential needs.
And we make it simpler for you to decide which asset classes you should invest in, including stocks, bonds, cash, international funds, or real estate and also, what percentages should be distributed to each category.