HOW WE INVEST

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 the 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

ASSET ALLOCATION

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.

MANAGER ATTRIBUTES

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 identified 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 (20-40 names)

Growing companies at reasonable valuations

Highly profitable, leading business franchises

Low-turnover, long-term investment horizon

FIXED INCOME

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 INVESTMENT

Alternative strategies offer diversification, reduced volatility and downside protection because of their lower correlation to stocks and bonds.

STRATEGIES


Private equity

Global opportunistic

Low volatility

Equity long/short

Real estate

Tangible assets