The broad investment mission of Equitable Trust is to preserve and enhance client wealth. We believe people want more than mass-produced products and strategies conceived and developed by people distant from investment decision and implementation. An essential element in the investment process is effective communication with the client.
preserve and enhance client wealth
- Custom client-centric solutions
- No proprietary products
- Diversification through asset allocation
- Individual stock and bond selection
- Third party manager evaluation and selection
- Passive index strategies
- Liquid and illiquid alternatives
We are advocates of diversification by way of thoughtful asset allocation. The appropriate combination of equity, fixed income and alternatives can mitigate volatility and enhance risk-adjusted returns over a complete market cycle. Since short-term swings in markets are unpredictable, we take, and we encourage clients to take, a long-term view toward investing.
The process begins with an in-depth discussion to make sure we understand fully a client’s needs, goals, and concerns.
listening to clients
- Return objectives
- Distribution needs
- Risk tolerance
- Time horizon
Third Party Manager Selection
Equitable Trust has more than 20 years of investment consulting experience that has developed into a time-tested approach to outside manager due diligence and selection.
We access third-party investment managers through separately managed individual accounts and institutional class mutual funds that offer lower management fees. With separately managed portfolios, security selection and timing of purchases and sales–and resulting tax consequences–can be managed exclusively and most effectively for each client.
- Concentrated portfolios
- Superior risk-adjusted returns
- Independent, boutique, employee owned
- Managers personally invested in the strategy
Due Diligence Process
- In-person meetings with the investment team
- Continuous communication with the portfolio manager
- Detailed analysis of portfolio holdings
- Thorough vetting of operational procedures
Individual Stock Selection
At Equitable Trust we dedicate significant firm resources to highly regarded independent research firms recognized for their reliability and independent thought. The Investment Committee identifies leading business franchises considered suitable for portfolio additions based on company fundamentals, price and current market conditions.
Stocks are reviewed continually and evaluated in the context of the Investment Committee’s sell discipline. While portfolios are designed to be low turnover with long-term investment horizons, stocks will be considered for sale when they trade above historical and relative valuations or when fundamentals deteriorate.
Stock portfolio construction
- Large, high-quality companies (20 to 40 names)
- Growing companies at reasonable valuations
- Highly profitable, leading business franchises
- Low-turnover, long-term investment horizon
The objective of Equitable Trust’s fixed income investing is to produce superior after-tax returns without assuming undue risk relative to the objective of the account. For income-oriented individual accounts, tax-exempt municipal bonds can be a major component of the investment strategy, and at Equitable Trust the municipal bond market is an area of long-standing specialization. By being alert to market inefficiencies, particularly in the market for bonds of Tennessee issuers, our portfolio managers can secure highly competitive after-tax yields for clients.
Alternative strategies offer diversification, reduced volatility and downside protection because of their lower correlation to stocks and bonds.
- Private equity
- Global opportunistic
- Low volatility
- Equity long/short
- Real estate
- Tangible assets