News

Investment Committee Implements Changes

Posted by: CHAD SCHOLLAERT

Posted on: November 16, 2011

The Trust Company's Investment Committee will be implementing the following changes as a result of our ongoing monitoring process and asset allocation review. These changes will be made to our managed portfolios in the fourth quarter of 2011. 

Large Cap Value - Dodge & Cox (DODGX) will be terminated due to lagging performance and will be replaced by Vanguard Value Index (VVISX). The new large cap value allocation in the Stock Portfolio wil be 60% Manning & Napier Dividend Focus (MNDFX) and 40% Vanguard Value Index. The pairing of these tow managers will supply adequate exposure to large cap value stocks with a focus on dividend paying companies.

Bond Portfolio - With an expectation that interest rates will remain low for the foreseeable future, we will be implementing a strategic increase to intermediate-term bonds and a decrease to short-term bonds (or capital preservation for qualified retirement plans). These changes will result in a higher yield without lowering the overall quality of the portfolio. The new Bond Portfolio allocation is as follows.

Qualified Retirement Plan Accounts 32.5% Metropolitan West Total Return (MWTRX)	Individual Accounts 32.5% Metropolitan West Total Return (MWTRX)
32.5% Pimco Total Return (PTRAX)	32.5% Pimco Total Return (PTRAX)
30% Templeton Global Bond (TGBAX)	30% Templeton Global Bond (TGBAX)
5% Federated Capital Preservation (CAPPR)	5% Pimco Short Term Bond (PTSHX)