StateTrust managed accounts are private/customized equity or fixed-income portfolios that feature securities owned in your own individual investor account. StateTrust private portfolios utilize a professional investment manager who makes buy and sell decisions and optimizes the selection and performance of such accounts.

At StateTrust, our managed accounts are specifically geared towards your special investing needs. Our private portfolios are fee-based accounts with a single, all-inclusive fee that is based on a percentage of the assets that are under our management. All charges are covered along with advisor costs, commissions/transaction payments, and reports. Also included are:

		Identification/assistance with selecting the appropriate money managers
		Account supervision
		Manager’s performance analysis/reporting
		Securities custodianship
		Transaction execution
		Consulting

Each managed account has an investment objective and our professional managers oversee multiple individual accounts invested to meet the same objective or management style (i.e., large, mid cap, small cap, international), and track the performance of such portfolios vis-à-vis a specialized benchmark to establish a qualitative as well as a quantitative review process. See our separate section entitled Duties of Investment Managers for more detailed information.

Fee-Based Financial Planning

One of the reasons our managed accounts are so effective is because our business is fee-based. This puts our focus squarely on caring for you, our client, and not worrying about commissions. It enables StateTrust to provide you with more professional service and advice utilizing a more varied approach. Some of the ways it makes a difference include:

		Stronger client relationships
		No conflict of interest
		More investing opportunities
		More chances to evaluate many more products
		Lower costs
		Revenue comes from quarterly annuities that are paid in advance
		Thorough asset management lets us help you achieve your financial goals
		Our fees may be tax-deductible (check with your tax advisor)

Checklist for Selecting a Private Account Manager

For our clients, there are many considerations to choosing your money managers. Before you start making selections you want to keep in mind:

		Your preferences from a financial standpoint: time horizon, tolerance for risk, expected returns, socially responsible considerations and any other exclusions, as well as other assets held and your investing experience
		Tax implications: Kinds of accounts, a taxable as opposed to tax-deferred portfolio, tax rates
		Money managers’ abilities and resources

Key elements in choosing appropriate private account managers:

Simply reviewing managers’ historical performance (absolute, risk-adjusted, relative risk-adjusted) is not sufficient. There are other issues that you will need to explore and consider including:

		Tax competence
		Composite portfolio quality
		Holdings/turnover of portfolio
		Investment philosophy
		Investment process/style
		Personnel/management succession
		Client service level
		Service quality
		Performance consistency
		Performance sustainability

Services and Products

In addition to money management, StateTrust’s managed accounts are structured to provide you with:

		Individual consulting services—including money manager selection and monitoring of your account performance
		Custodial services (holding the assets)

The financial consultant in charge of your account supervises all of the trades and transactions that occur. And most significantly, our consultant works closely with you to outline your investment objectives and risk tolerance so we create the right long-term investment plan for you.

Client Responsibility

Our clients are a vital part of the money managing process. We want you to develop a clear understanding of your own particular investment philosophy as well as your tolerance for risk. We send you periodic reviews and reports that help you grasp our philosophy and investment style. Quarterly performance numbers alone often do not tell the whole tale. And with market fluctuations on the rise, it is imperative to have a knowledgeable financial consultant in place whose primary objective is your financial success.