The Portfolio Management Process at StateTrust, a TRIED AND TRUE COURSE FOR SUCCESS
StateTrust specializes in providing a complete range of financial products, services and strategies to help its clients to grow and preserve their net worth, while reaching their investment objectives and financial goals.
Miami, Florida, USA – March 20, 2014 – The investment and portfolio management process at StateTrust starts by defining the client’s financial goals, then they determine an investment allocation strategy, choose the right financial vehicles, select an appropriate money manager with the expertise to advice on portfolio management decisions and finally, design a portfolio that encompasses the right mix of assets to suit the client’s financial needs and tolerance for risk.
To create a financial profile we match the following investment parameters with the client’s specific investment goals and objectives:
Risk tolerance level: The amount of risk the client is willing to take as an investor. Generally, higher returns imply a higher amount of risk.
Time Horizon: Defining the amount of time available to reach a financial objective is critical in determining the investment vehicles used to attain that goal.
Liquidity: If the client might need to cash out a significant portion of their investments in a short time period, it is important to look at the ability to convert the investment into cash at any point without having to sell it at a significant discount from its current market price.
Income Tax Considerations: Investment selection can be influenced by the client’s tax bracket, available tax credits, amounts and types of income, deductions and depreciation.
Expected Return on Investment: Based on historical information of returns for different asset classes. Since past performance does not guarantee future performance, the difference between historical returns and actual returns could be significant.
Systematic Risk: The risks that cannot be reduce or eliminate, such as Inflation, marketplace, interest rate, politics and regulations.
Unsystematic Risk: Company-specific or industry-specific risk in a portfolio. It can be significantly reduced or eliminated through diversification.
Minimum Required Rate of Return: The amount of return necessary to warrant a purchase. This rate is defined by the client’s financial objectives.
Actual Return: The return that an investor accrued on investments in a period of time. The calculation takes into account interest, dividends, the investment's price appreciation and the time the investment was held.
Selecting Appropriate Investment Vehicles: Asset allocation (the process of distributing a portfolio over various asset classes) is widely recognized as the principal reason for a portfolio's return variations. It is critical to determine an asset allocation strategy with the client's goals and objectives in mind, balanced against the client's risk tolerance. One of the reasons for asset allocation is to stabilize returns through diversification.
Asset Allocation Review: Periodically, basic asset allocation policy or calculations may be amended. Every quarter, StateTrust will review the portfolio and each asset class in which it is invested and carry out the necessary readjustments in response to changing economic or business conditions.
Selecting the Appropriate Manager: StateTrust supports a large database of the world's most qualified managers across more than 20 asset classes. Managers from a pool of 500 are categorized according to their investment style and performance is measured against 100 specialized benchmarks. To obtain the highest probability of superior returns, historical performance is analyzed under different market conditions with emphasis on risk adjusted returns.
StateTrust is a privately owned financial institution specializing in wealth and investment management. It operates in the United States through StateTrust Capital LLC, an investment advisor firm and StateTrust Investments Inc., a registered broker-dealer.
If you are interested in more information about StateTrust Wealth Management services or for further information about this release, please contact:
800 Brickell Avenue, Suite 100
Miami, FL 33131
DISCLAIMER: Investors should carefully review the objectives, risks, charges and expenses of any investment company before investing. Prospectus and, if available, the summary prospectus, contains important information about the investment company. You can contact us to request our prospectus, which we encourage you to read carefully. The value of your investment may fluctuate, and when redeemed, shares may be worth more or less than their original cost. Investments in a fund (Investment Company) are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Securities offered through StateTrust Investments, Inc. Member of SIPC/FINRA. SIPC protection offered only on accounts held at StateTrust Investments, Inc. For more information about SIPC and the protection it provides, please visit SIPC's website. You may also want to read FINRA's Investor Alert entitled SIPC Protection. Further information regarding the SEC and its regulatory framework can be found at www.sec.gov.