Managed Accounts

StateTrust managed accounts are private/customized equity or fixed-income portfolios that feature securities owned in your own individual investor account. StateTrust private portfolios utilize a professional investment manager who makes buy and sell decisions.

At StateTrust, our managed accounts are specifically geared towards your special investing needs. Our private portfolios are fee-based accounts with a single, all-inclusive fee that is based on a percentage of assets under management. All charges are covered along with advisory services, commissions/transaction costs.  Also included are:

  • Money Manager selection.
  • Account supervision.
  • Manager's performance analysis/reporting.
  • Securities custodianship.
  • Transaction execution.
  • Consulting.


Each managed account is designed to meet an investment objective; our professional money managers are segmented by management style (i.e., large, mid cap, small cap, international), and track the performance of such portfolios vis-à-vis a specialized benchmark to establish a qualitative as well as a quantitative review process.

Our fixed income programs are broken up into different categories:

  • Investment Grade.
  • International Fixed Income.
  • Investment Grade/Emerging Market Blend.
  • US Govt & Agencies Program.
  • Euro denominated Fixed Income.
  • Municipal and state general obligation bond Program.

Each program has been designed for the following goals:

  • Generate long term returns while managing risk.
  • Generate consistent income/cash flow.
  • Invest in quality securities.


Our managed account program seeks to add value by managing duration and diversifying* within multiple countries, sectors, currencies and securities.

* Diversification does not guarantee a profit or ensure against loss.

Fixed Income Managed Accounts

The process of managing fixed income accounts involves a variety of decisions and factors such as: 

  • A large variety of fixed income choices in the market.
  • Evolving retirement plans.
  • Unpredictable market fluctuations. 
  • Changes in the federal tax law.
  • Interest rate changes.

We can provide you with opportunities and recommend strategies designed to meet your investment objectives. Our offerings include high-quality fixed-income securities—everything from tax-exempt securities like municipal bonds* to taxable fixed-income investments such as Certificates of Deposit and High Yield Corporate Bonds.  Long-term, risk-averse investors should strongly consider fixed income investments.  This is particularly true for investors who are mostly concerned with:

  • Preservation of capital.
  • Consistency of earnings.
  • Regular cash flow.

*  Income may be subject to the Alternative Minimum Tax (AMT)

Our Managed Portfolios

StateTrust Manages Six Portfolios in the Fixed-Income Arena:


Investment Grade Program

  • Invests 100% in investment grade bonds (North American corporate bonds, and U.S. government agencies)

At StateTrust, our Investment Grade Program is especially designed to control risk and offer diversification*. Our program invests only in bonds from a variety of North American companies and from the U.S. Treasury/U.S. Government agencies that have an average risk rating of BBB (S&P ratings), or Baa (Moody’s ratings).

Investment Grade Program
U.S. Corporate Bonds
Preferred Stocks and/or Convertible Bonds
U.S. Treasury Bonds/U.S. Government Agency Bonds
Number of Securities 30
 Duration 5
Maturity (yrs) 9


* Diversification does not guarantee a profit or ensure against loss.

International Program

  • Invests 70% in Investment Grade securities.
  • Invests 30% in paper denominated euro or any other non-US G7 currency.


StateTrust’s International Program looks to invest 70% of your portfolio in Investment Grade securities issued by the U.S. government and various corporations in differing industries and sectors. The other 30% is placed in paper denominated euro or non-US G7 currency issues. Once again, our process allows for low risk and strong diversification*. We analyze international economies and political environments to discover the best placement for your assets.

International Program/Euros
Government Securities
Sovereign Debt
Number of Securities 30
Duration 6.5
Maturity (yrs) 10


* Diversification does not guarantee a profit or ensure against loss.

Emerging Markets

  • Invests 70% in Investment Grade securities.
  • Invests 30% in emerging markets.

Our Emerging Markets Program looks to take advantage not only of U.S. Investment Grade Securities, but also to offer some exposure to developing countries. This would include securities from an assortment of governments and  corporations. We research and analyze different emerging economies and environments to determine the best opportunities.

Emerging Markets Program - U.S. Investment Grade Securities
U.S. Corporate Bonds
Preferred Stocks and/or Convertible Bonds
U.S. Treasury Bonds/U.S. Government Agency Bonds

Emerging Markets

Government Securities
Corporate Bonds
Sovereign Debt
Emerging Markets Program - Overseas


Number of securities 30
Duration 7
Maturity (yrs) 12

Euro Program

  • Invests 100% in denominated euro bonds.

With our Euro Program, you get the opportunity to invest your assets in denominated euro bonds. These Investment Grade bonds comprise sovereign debt and a host of corporate securities (Investment Grade) as well.

Euro Program
European Corporate Securities
European Sovereign Debt
Number of Securities 30
Duration 5
Maturity (yrs) 10

U.S. Government & Agencies Program

  • Invests 100% in the U.S. government and government agencies.

Bonds from the U.S. government and assorted government agencies are among some of the safest ones you can buy, since the U.S. government is considered one of the best sovereign credit risks.  If you are looking for steady, stable returns over time, this is one of your best options.


U.S. Government & Agencies Program
U.S. Treasury Securities
Federal Agency Bonds

U.S. Government & Agencies Program

Risk Levels from Lowest to Highest
1. U.S. Government/Agencies Program
2. Investment Grade Program
3. International Program
4. Euro Program
5. Emerging Markets Program
Number of Securities 30
Duration 5
Maturity (yrs) 10

Municipal Bond Program by State

  • Invests 100% in municipal and state general obligation bond offerings


At StateTrust, our Municipal Bond Program is especially designed to control risk while offering the advantages of certain tax exemptions*.  Our program invests only in bonds from a variety of US municipalities and states that have an average risk rating of BBB (S&P ratings), or Baa (Moody’s ratings).

municipal bond is a bond issued by a city or other local government, or their agencies. Potential issuers of municipal bonds includes cities, counties, redevelopment agencies, special-purpose districts, school districts, public utility districts, publicly owned airports and seaports, and any other governmental entity (or group of governments) below the state level. Municipal bonds may be general obligations of the issuer or secured by specified revenues.

In the United States, interest income received by holders of municipal bonds is often exempt from federal income tax* and the income tax of the state in which they are issued.

state general obligation bond is a common type of municipal bond in the United States that is secured by a state's pledge to use legally available resources, including tax revenues, to repay bond holders.


States covered:

All 50 US states and the District of Columbia.


*  Income may be subject to the Alternative Minimum Tax (AMT)

Municipal Bond Program by State

Cumulative historic default rates of municipal bonds and corporate bonds 1970-2007  (in percent and by rating)

Rating categories Moody's S&P
Muni Corp Muni Corp
Aaa/AAA 0.00 0.52 0.00 0.60
Aa/AA 0.06 0.52 0.00 1.50
A/A 0.03 1.29 0.23 2.91
Baa/BBB 0.13 4.64 0.32 10.29
Ba/BB 2.65 19.12 1.74 29.93
B/B 11.86 43.34 8.48 53.72
Caa-C/CCC-C 16.58 69.18 44.81 69.19
Investment grade 0.07 2.09 0.20 4.14
Non-invest grade 4.29 31.37 7.37 42.35
All 0.10 9.70 0.29 12.98

Source: US Federal Reserve, Moody's, S&P 500

Equity Managed Accounts

We manage two proprietary types of portfolios—large cap (capitalization) growth and mid cap (core). Market capitalization is calculated by multiplying a stock’s market price by the number of shares.


Large Cap Mid Cap Small Cap
$10 billion $1-10 billion less than $1 billion

Equity Styles

  • Growth
    Growth investing is a style of investment strategy. Those who follow this style, known as growth investors, invest in companies that exhibit signs of above-average growth, even if the share price appears expensive in terms of metrics such as price-to-earnings  or price-to-book ratios.
  • Value
    Value investing focuses on investing in out of favor companies or industries that have lower price/earnings ratios or price/cash flow ratios than peer companies or other industries.
  • Core
    Managers who utilize the core style, do not favor either growth or value portfolio stocks. As a result, their portfolios tend to mimic the market quite closely.
  • Other
    Some other styles include international stocks (Europe and Asia) and emerging markets.

Equity Managed Accounts


Our Large Cap (Capitalization) Growth Portfolios invest in large company stocks that feature:

  • Strong management
  • A Good track record
  • The potential of higher future earnings


Our Mid Cap (Core) Portfolios invest in medium-sized company stocks that feature:

  • Stable management
  • Steady growth
  • Even long-term performance