News

Upcoming Investment Manager & Allocation Changes

Posted by: CHAD SCHOLLAERT

Posted on: February 16, 2012

This quarter The Trust Company is making several changes to investment portfolios as a result of our ongoing investment review process.

Mid Cap Value - Our current manager Cramer Rosenthal (CRMMX) will be replaced due to lack of confidence in the fund manager.  We have noticed a lack of conviction by the manager in their strategy following a period of inconsistent performance.  We will be replacing CRMMX with Vanguard Mid-Cap Value Index (VMVIX).

Allocation Changes - International stocks were hampered last year by the ongoing issues in the Eurozone and high volatility.  Large cap domestic stocks were also affected but not nearly as much.  Given the fact that we expect the negotiations among Eurozone countries to continue for the forseeable future, we will be making a slight reduction of 5% in developed international stocks and a corresponding increase of 5% in large cap domestic stocks.  We still believe that international stocks, particularly emerging market stocks, are attractive for long term investors, but in an environment of high volatility we believe this is a prudent step.