WHO MAKES INVESTMENT DECISIONS?
The trust officers at Two Rivers Trust Co. have access to a variety of research disciplines which may be used for the benefit of clients. The model portfolios used vary from ultra-conservative to ultra-aggressive, diversify among both securities and asset classes, and optimize on a forward looking expected return basis with portfolios on an annual calibration of expected returns and monthly allocation adjustments based on the current market environment.
WHAT TYPE OF INVESTMENTS ARE USED?
Most trusts invested for long-term growth own primarily financial assets, including individual stocks, ADRs (American Depository Receipts), no-load mutual funds, and exchange-traded funds. Through these investments, clients can access various asset classes including foreign and domestic equities, fixed income securities, commodities and real estate investments.
WHAT DISCIPLINES ARE EMPLOYED?
The Capital Asset Pricing Model (CAPM) is the starting point for the Two Rivers Trust's portfolio construction. Using Federated Investors' Capital Market Expectations and Mean Variance Optimization (MVO) framework, seven "neutral" portfolio models are utilized that span the risk/return spectrum from ultra-conservative to ultra-aggressive.
Two Rivers Trust also has access to the FCI Advisors Investment team. Founded in 1966, FCI manages more than $7 billion in assets. FCI's team of more than 25 investment professionals averages more than 20 years of experience in portfolio management, many of whom have earned the Chartered Financial Analyst (CFA) designation. Headquartered in Kansas City, Missouri and affilited with Midwest Trust, FCI's active management resources are available for only a 0.25% fee for Two Rivers Trust clients.
CAN I USE MY OWN ADVISOR?
As a fiduciary, Two Rivers Trust, has complete responsibility for the investment of trust assets. As a result of retaining full liability, in most cases Two Rivers depends on its own disciplines for investment management. However, another advantage of selecting a truly independent trust company is there is some flexibility in this area.