Investment Options

Key Private Bank offers various investment options for our Special Needs Trusts (SNT). The investment objective for your portfolio is developed in conjunction with a review of your financial resources and goals, an evaluation of your risk preference, and rate of return objectives.

Return Objective Risk Tolerance
 

Cash Equivalents

Appropriate for investors who desire no principal volatility with competitive market returns. Low – Preservation of principal is sole objective.
 

Income

Appropriate for investors who desire high current income with a Moderate/Average risk profile. Moderate/Average – High levels of current income with moderate principal volatility.
 

Income/Growth

Appropriate for investors who desire moderate growth, modest current income and have an Average risk profile. Average – Average principal risk with average inflation protection
 

Balanced

Appropriate for investors who desire moderate growth, modest income and have an Average/Above Average risk profile. Average/Above Average – Moderate to above average risk with above average inflation protection.
 

Growth/Income

Appropriate for investors who desire moderate growth with a secondary provision for income and an Above Average/High risk profile. Above Average/High – Moderate to above average risk with above average inflation protection.
 

 

Growth

Appropriate for investors who desire long-term growth, have minimal income needs, and accept volatility of principal through an Above Average/High risk profile. Above Average/High – Risk can be substantial with aggressive investments to seek high returns.

Allocation Guidelines

Cash Equity Fixed Income Real Assets Alternatives
Cash Equivalents 100% 0% 0% 0% 0%
Income 0% – 20% 10% – 30% 65% – 85% 0% – 10% 0% – 20%
Income/Growth 0% – 20% 30% – 50% 45% – 65% 0% – 10% 0% – 20%
Balanced 0% – 20% 40% – 60% 35% – 55% 0% – 10% 0% – 20%
Growth/Income 0% – 20% 50% – 70% 25% – 45% 0% – 10% 0% – 20%
Growth 0% – 20% 70% – 90% 5% – 25% 0% – 10% 0% – 20%

Please note that choosing the investment option that is most appropriate to your needs, we also consider the amount of funds in the trust, the frequency of disbursements, and your comfort with fluctuation int he account value (e.g. risk tolerance).

 

For investments over $250,000, Key Private Bank can develop customized institutional investments exclusively for The Arc of Northern Virginia trust clients. They manage portfolios reflecting a broad spectrum of needs and objectives across accounts ranging from one Beneficiary to thousands. Their experience in pooled trusts includes a large number of pension trusts, multiple Native American minors’ trusts, and an expanding list of special needs trusts. Key Private Bank’s portfolios include all of the traditional asset classes as well as most of the specialty and alternative asset classes, where appropriate. They include both active and passive investments in our portfolios, which normally results in a significant cost savings given the lower expense ratios of passive funds. Their approach to investment management is shaped by our fundamental beliefs:

  • The investment management industry is dynamic.
  • Change is largely driven by technological advances and private and academic research.
  • Investment decisions should be based on rigorous fundamental research.
  • Properly executed diversification lowers portfolio risk levels.
  • Investing in the best available product at the lowest possible cost leads to superior returns.
  • Active and passive investment strategies are both legitimate approaches to investment management.
  • The investment program should be client-focused and built around the needs, desires and tolerances of the client.

These beliefs form the foundation of our investment process, which is forward-looking and fundamentally driven. The result of this process leads to the construction of portfolios that are tailored to the specific goals, expectations and risk tolerance of our clients. Key Private Bank believes that these principles have been instrumental in helping clients avoid the emotional behaviors common in times of severe market stress.

If you have investments over $250,000 in your trust with us, you may wish to speak with Key Private Bank’s Portfolio Manager. The Trust Team can connect you with the Portfolio Manager.

 

For a copy of the Weekly Investment Newsletter from Key Private Bank, please see below.

July 3, 2017

July 10, 2017

July 31, 2017

August 7, 2017

August 14, 2017

August 28, 2017

September 5, 2017

September 11, 2017

September 25, 2017

October 2, 2017

October 23, 2017

October 30, 2017

November 27, 2017

December 4, 2017

 

If you have more questions, please contact the Trust Team.