WEALTH MANAGEMENT & ADVISORY SERVICES Stability. Integrity. Expertise.
A Proven Strategy for Investment Success Best-of-Class We are not restricted by offering proprietary products or holding an inventory of securities. Our selection of securities and outside fund managers is based on unbiased research and analysis. During this ongoing process, our Senior Portfolio Managers and research analysts conduct rigorous quantitative and qualitative research, which enables Washington Trust to enhance the asset allocation options. Our choices are made because we believe they are truly the best choices not because we are obligated to sell a product or reduce inventory. Our independent structure and open architecture philosophy allow us to strategically combine in-house expertise with external investment management capabilities to truly achieve best-of-class portfolio construction. Institutional Expertise Washington Trust Bank brings institutional expertise and strategies to our clients that would not be available to them when managing their own portfolios. One of the main reasons for the difference in the long-term performance of institutional portfolios versus individual portfolios has been better diversification. Historically, individual portfolios have diversified by using only traditional assets stocks and bonds. We believe that true diversification and effective risk management can only be achieved using asset classes that are not highly correlated, but highly complementary to traditional stock and bond strategies. Our expertise allows for the construction of individual portfolios that have the same diversification sophistication as institutional portfolios. Our Disciplined Process Each portfolio has its own written investment policy, which we create based on factors such as other holdings, tolerance for risk, tax situation, time horizons, expected returns and spending requirements. Our investment policy documents your customized portfolio that is goals-based and personalized to meet your financial objectives. Our Goals-Based Process is as Individual as You Are Identify Objectives We cautiously approach the intent or goal of your wealth. Retirement? A legacy for your family? Future charitable benevolence? Identifying your specific objectives is key to customizing your portfolio strategy. We take the time to understand what is important to you and the purpose of your assets in support of your financial goals. Determine Allocation Strategy A prudently designed and well-diversified asset allocation strategy is critical to achieving long-term financial goals. Our investment experts have access to a number of resources that help them analyze and position the optimal asset allocation of traditional and complementary asset classes for each client. Our selections reflect your specific needs and are not a single "rigid model" strategy applied to all. We focus on asset allocation and investment style diversification to not only enhance performance but to actively manage risk. Expected asset class returns, volatility and the diversification effect of the various asset classes are all carefully analyzed. Our active research enables us to identify developing market trends that may warrant appropriate changes to our strategies. We ll quickly communicate any recommended changes based on new information. Washington Trust Bank has earned the trust and confidence of our clients and their legal and tax advisors for more than 110 years.
Investment Philosophy & Style Before we make a single recommendation, we understand your ultimate financial objectives. By asking the right questions and carefully listening to and understanding your financial goals, we recommend personalized solutions, avoiding a one-size-fits-all approach to portfolio construction. Successful portfolio management requires expert understanding of the companies and securities that we select for our portfolios. That s why our Senior Portfolio Managers have a sophisticated variety of research tools available to help them evaluate various investment options and to provide a goals-based, customized investment recommendation for each of our clients. Strategy Our strategy is to build a well-diversified portfolio that seeks to maximize return while minimizing risk within the constraints defined by our client. As a part of this strategy, we may select and hire highly skilled, rigorously screened and monitored outside money managers. This strategy seeks to employ superior best-of-class securities management in appropriate asset classes while maintaining a single point of responsibility and primary investment advisor. We coordinate traditional asset classes with complementary and alternative allocation protections to maximize portfolio return while minimizing the risks within the portfolio. Risk Management To paraphrase Will Rogers: We believe that return of capital is as important as return on capital. This philosophy ensures that our investment approach focuses on the balance between maximizing growth and managing risk. Our clients must be fully compensated for the risk inherent to their portfolios. We recognize this may result in not participating in the latest "hot" security or market trend; adherence to this discipline ensures that our clients portfolios are fully compensated for the risks associated with the securities owned while generating consistent returns. Methodology We are fundamentally based in our approach for constructing portfolios and selecting securities, but believe that quantitative analysis plays an important role in screening and selection. The success of our management is based on our proprietary, in-depth analysis of the companies and securities we select for our portfolios. Washington Trust Bank deploys this strategy in the management of traditional core securities by our in-house Portfolio Managers as well as our best-of-class fund selection for complementary allocation components within our portfolio structure. Continuous Monitoring Active management produces consistent, superior results and is a critical component of our success. That s why we monitor the securities markets as experts, and we also proactively monitor allocation and policy objectives to our clients changing requirements. Proactive Performance Measurement Our performance reporting takes the guesswork out of portfolio performance with easy-to-understand, customized reporting. You receive access to your performance since inception, the asset classes and a snapshot of the portfolio s activity in one easy-toview page. We can combine multiple portfolios into one streamlined report. Weighted benchmarks are assigned to all asset classes to create a custom, blended benchmark to ensure accurate historical performance reporting. WEALTH MANAGEMENT & ADVISORY SERVICES Portfolio Management Group 3
Portfolio Construction Our goals-based process is quite different from traditional investment planning, where advisors only look to outperform. We connect your wealth to your goals, and our process brings structure and discipline to your wealth planning. For many organizations and individual clients, we have more than one goals-based strategy in place, based on their requirements. Our portfolios are structured with both core traditional and complementary asset classes. Core holdings typically share some of the following characteristics: dominance in key product lines, attractive long-term growth potential, significant competitive advantages and effective management strategies. Other investments may be more complementary or opportunistic in nature and can include undervalued investments as well as those that are growth or risk management driven. Your portfolio may include the following: Growth Strategies Domestic Equity Large Capitalization Mid and Small Capitalization International Equity Large Capitalization Small Capitalization Emerging Markets Income Strategies Domestic Fixed Income U.S. Government and Agency Investment-Grade Corporate Mortgage-Backed Securities High Yield International Emerging Markets Selection Process Large Cap Core Equity Washington Trust uses a wide variety of research tools to help identify our core equity selections. Thorough research ensures our fund process meets our demanding expectations. In order to find the best companies, we identify, investigate and conduct ongoing due diligence and monitoring, using both quantitative and qualitative analysis. Core Fixed Income Washington Trust uses a tax aware, active management process for our core fixed income security selection. Through a blend of top-down and bottom-up analysis, we seek to add value by emphasizing credit quality and thorough analysis of the fair value of each bond selected. Risk Management Strategies To reduce uncertainties surrounding which asset or asset class will outperform in the long run, we believe the best way to reduce volatility, manage risk and improve the reward/risk profile for client portfolios is to improve diversification using asset classes which are not highly correlated. In addition to the traditional asset classes (equities, fixed income, cash), we utilize alternative strategies as part of our portfolio construction. Risk management strategies serve three primary roles: Improve diversification Reduce risk Provide clients access to institutional strategies that are not available to most individual investors Real Return Strategies Commodities Global Infrastructure Real Estate Treasury Inflation-Protected Securities (TIPS) Risk Management Strategies Global Macro Managed Futures Market Neutral Volatility Dampening WEALTH MANAGEMENT & ADVISORY SERVICES Portfolio Management Group 4
A Team Approach Decisions regarding your investments are too important to rest on the shoulders of one individual, no matter how exceptional that person may be. Rather than rely on the outlook and experience of a singular opinion, Washington Trust Bank utilizes our Portfolio Management Group and a consensus-based, team approach to expert investment strategy and decision making. Steve Scranton Brian Brill Tom Nesbitt Richard Cloutier Gayle Sprute Nicholas Reynolds Portfolio Management Group
Steve Scranton Senior Vice President, Chief Investment Officer 509.358.8171 sscranton@watrust.com About: Steve is the Chief Investment Officer for Washington Trust Bank and holds a Chartered Financial Analyst designation with over 30 years of investment experience. As Washington Trust Bank s Chief Investment Officer, Steve is responsible for management of the Portfolio Management Group and works closely with clients and relationship managers to design, implement and monitor investment and risk management strategies. Throughout the Pacific Northwest, Steve is a well-known speaker on the economic conditions and world securities markets. He also actively participates on committees within the bank to help design strategies and policies related to bank-owned investments. Steve serves as the economist for Washington Trust Bank and participates in public speaking engagements, as well as authoring multiple communications, to keep our clients informed of economic and investment market conditions. Advisory Expertise: Senior Management - Chief Investment Officer of Washington Trust Tom Nesbitt Vice President, Senior Portfolio Manager 509.353.4158 tnesbitt@watrust.com About: Tom is a Vice President and Senior Portfolio Manager for Washington Trust Bank s Wealth Management & Advisory Services. He is responsible for designing integrated asset allocation strategies for clients by developing custom investment solutions to meet client risk/reward goals. Tom has significant investment experience that includes positions with two world-leading consulting firms. He has extensive experience in asset class analysis, portfolio management, manager selection and investment policy construction and implementation. He is responsible for all external investment manager analysis, selection, monitoring and retention. Tom has gained great experience throughout his 30-year career. This experience has provided a strong background in investment fund structure, investment manager selection, monitoring and retention, product development and client asset allocation. Advisory Expertise: Senior Manager - Manager Selection and Due Diligence Gayle Sprute Vice President, Senior Portfolio Manager 509.358.8219 gsprute@watrust.com About: Gayle is a Vice President and Senior Portfolio Manager for Washington Trust Bank s Wealth Management & Advisory Services Portfolio Management Group. She is responsible for providing custom investment and risk management strategies and solutions for clients with complex financial needs. Gayle is the primary equity strategist for Washington Trust. Drawing on her 20+ years of experience, she selects companies for inclusion in the large-cap equity strategy for Wealth Management client portfolios and manages the overall and complex core equity strategy. Gayle s equity management expertise derives from her Wall Street experience. She has far-reaching investment industry experience that includes highly successful positions at some of Wall Street s most respected investment banks. Gayle brings her national and global equities expertise to the clients of Washington Trust, providing them with a highly sophisticated, disciplined and successful equity strategy in their portfolios. Advisory Expertise: Senior Manager - Large Cap Core Equity Analysis & Selection
Brian Brill Vice President, Senior Portfolio Manager 509.353.3896 bbrill@watrust.com About: Brian is a Vice President and Senior Portfolio Manager who manages the core fixed-income investment process for Wealth Management & Advisory Services clients by providing sophisticated investment counsel and portfolio risk control strategies. Brian is the bank s primary fixed-income strategist and oversees the strategy, implementation and trading of all fixed-income securities for both private and institutional capital. Brian also holds a Chartered Financial Analyst designation. He has more than 20 years of portfolio management and institutional investment experience. Brian s significant expertise in fixed income is a key to our clients financial success, as he positions them to both safe and well positioned portfolios. Advisory Expertise: Senior Manager - Core Fixed Income Analysis & Selection Richard Cloutier, Jr. Vice President, Senior Portfolio Manager 509.353.4074 rcloutier@watrust.com About: Rick is a Vice President and Senior Portfolio Manager for Washington Trust Bank s Wealth Management & Advisory Services. He is responsible for developing our asset allocation strategies. Rick designs integrated asset allocation solutions by creating custom investment strategies to meet client risk/reward goals. He works closely with clients to design, implement and monitor investment and risk management strategies. He has more than 20 years of portfolio management and institutional investment experience. Prior to joining Washington Trust Bank, Rick served as the Director of Research and Portfolio Manager at Heritage Capital in Boston, where he managed equity, fixed income, and alternative investments research. In addition, Rick was responsible for developing diversified portfolios for foundations, pensions, charities, and high-net-worth individuals and their families. Before Heritage, Rick was the Director of Research at Wingate Financial. There, he led the research efforts and developed equity, fixed income, and mutual fund portfolio strategies. Advisory Expertise: Senior Strategist - Asset Allocation Nicholas Reynolds Portfolio Manager 509.353.5628 nreynolds@watrust.com About: Nick is a Portfolio Manager for Washington Trust Bank s Wealth Management & Advisory Services. He offers our clients a combination of sophisticated financial counsel, practical security management advice and a high level of personalized service. Nick partners with our Relationship Managers to enhance the discussion with new and existing clients by reviewing their current portfolio situation, evaluating their investment strategies and developing customized portfolios with his team to ensure continued success. Advisory Expertise: Client Portfolio Manager Global expertise Institutional class investment structure Fee based No commissions Regionally based Portfolio Managers Best-of-class : no proprietary funds or inventory No affiliation with any investment company or fund Tax efficient
Contact Our Advisors Seattle 601 Union Street, Suite 4747 Seattle, WA 98101 206.667.8954 888.254.0622 Spokane 717 West Sprague Avenue, Suite 900 Spokane, WA 99201 509.353.3898 800.725.4449 Bellevue 10500 NE Eighth Street, Suite 1100 Bellevue, WA 98004 425.709.5506 888.445.7166 Portland 920 SW Sixth Avenue, Suite 1300 Portland, OR 97204 503.778.7060 Boise 945 West Bannock Street Boise, ID 83702 208.345.3343 North Idaho 218 Lakeside Avenue Coeur d'alene, ID 83814 208.667.7993 watrust.com WEALTH MANAGEMENT & ADVISORY SERVICES