Wealth Management

StateTrust specializes in providing a complete range of financial products, services and strategies to individual clients and their families. Our primary concern is to grow and preserve your net worth.  We work closely with our clients, gathering necessary information to understand their unique financial needs in order to construct a comprehensive long-term relationship and provide a series of individualized recommendations to meet their financial objectives.

At StateTrust, we emphasize the importance of well diversified portfolios as a way to preserve capital and manage risk.  Our investment philosophy for US and global clients consists of building portfolios centered around sound asset allocation principles designed to meet our client's financial needs, risk tolerance, expected returns, and investment time horizon.

The image below shows different asset allocation combinations, with corresponding historical risks and returns.

Source: StateTrust’s analysis of Morningstar data.  Performance shown is not indicative of the performance of any specific investment.  An investor cannot invest in an index, such as the one these graphs are based on.  Past returns are no guarantee of future performance.  These returns are based on historical information, from sources believed to be reliable, but accuracy cannot be guaranteed, and these returns can vary in future time periods.

A Personalized Strategic and Investment Plan

At StateTrust, we develop a customized investing plan for each of our clients. This plan will help you reach your investment objectives and financial goals.  We explore every facet of your existing finances and investments by:

 

  • Scrutinizing your current assets, such as stocks, bonds, insurance policies or real estate.
  • Examining your cash flows including contributions/disbursements towards your objectives.
  • Appraising you of any legal or legislative restrictions that may apply.
  • Evaluating personal and family preferences.

 

Next, we work closely with you to create a portfolio that features diversified holdings.  We incorporate:

 

  • Sound asset allocation.
  • Strategies that align with capital markets.
  • Alternative investment advice.
  • Contemporary portfolio models.

Once we examine your financial situation and investment profile, as well as your financial objectives, then it is time to write up an Investment Policy Statement (IPS). This is a statement that outlines the strategic plan for your investments, and also provides direction whenever there is a need for us to modify investing patterns. We advice clients to define in writing their financial objectives and money management supervisory process.  Some of the steps considered in an Investment Policy Statement are as follows:

 

  • Clarify objectives.
  • Provide investing guidelines.
  • Define asset allocation.
  • Set forth money management structures.
  • Define selection criteria for: money managers, mutual funds, hedge funds or alternative investments.
  • Explain securities guidelines.
  • Evaluate progress according to your estate planning, fiduciary structure and investment plans.
  • Monitoring results, reporting, and communication.

 

Our advisors will meet with you regularly as part of a consultative process to assess your goals, investment performance, changes in your personal financial situation, and to review changes to your portfolio based on current global economic events.

Income reinvesting enables clients to take advantage of compounding returns to grow their portfolios.  With compounding, client assets appreciate and earn income on both the principal and the reinvested dividends and coupon payments. Account balances will not grow as quickly if dividends or coupon payments are consumed rather than reinvested.  At StateTrust, we monitor the portfolio income reinvestment process as a means to achieve our client's financial objectives.

The following image compares the difference in the hypothetical growth of $1,000 invested in stocks and bonds over the last 20 years with and without reinvestment of dividends or coupon payments.

Compound Annual Return 1970-2010

Source: StateTrust’s analysis of Morningstar data.  Performance shown is not indicative of the performance of any specific investment.  An investor cannot invest in an index, such as the one these graphs are based on.  Past returns are no guarantee of future performance.  These returns are based on historical information, from sources believed to be reliable, but accuracy cannot be guaranteed, and these returns can vary in future time periods.

  • 1. Setting Objectives
    Advisor/client meeting to establish clear and definable expectations, risk and return objectives, and guidelines for the investment of the assets.
  • 2. Defining the Asset Allocation Policy
    Identify the investment asset classes to use to achieve a diversified portfolio.
  • 3. Money Management Procedures
    To provide money management guidelines, investment manager recommendations, and an evaluation of the performance of those managing and investing the assets.
  • 4. Monitoring, Reporting, and Communication Procedures
    To set forth procedures to evaluate risk adjusted performance and progress towards investment and financial goals.

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