Overview

Like institutions, wealthy families have the long-term capital to invest in traditional and alternative assets. Unlike institutions, wealthy families are constrained by taxes, legacy investments, restricted stock, or concentrated exposures elsewhere. Sentinel Trust built its investment platform to address these unique needs of wealthy families.

Each family is served by a Senior Investment Advisor who designs an asset allocation and oversees implementation and monitoring in conjunction with the overall wealth plan. We structure investment activities with a multigenerational perspective, recognizing the different risk tolerances, return objectives, and tax postures of each family member or trust beneficiary.

Wealthy families also often have significant business interests, investment positions, or managers that they wish to retain. Sentinel Trust customizes the portfolio with appropriate recognition of these matters to reduce concentration and risk.

We offer a full suite of traditional and alternative investments, including fixed income, domestic and international equities, private equity, and hedge funds. Our capabilities extend to management of family-specific assets like real estate, oil and gas, and closely held businesses. We can accommodate preferences for socially responsible and impact investments.

Tax Efficiency

We think about tax in everything we do. Our equity strategies include daily tax loss harvesting, and municipal bonds form the bulk of clients’ fixed income exposure to capture tax-free interest. Low-basis assets are analyzed for use in philanthropy or estate planning. Hedge funds, notorious for generating short-term capital gains, are judged on an after-tax basis. We prefer private equity opportunities where the value realization will be taxed as a long-term capital gain rather than ordinary income.

Investment advisors develop asset allocations based on expected after-tax returns of each asset class. We take a holistic view of the family balance sheet and place tax-inefficient assets in tax-deferred accounts or entities subject to lower tax.

Diversification

Families make money by concentrating resources. They keep it by diversifying risk. Sentinel Trust considers diversification across asset classes, securities, and managers. Investment advisors tailor portfolios to a family’s need for liquidity and income as well as their capacity for risk.

Access and Scale

By pooling together clients’ assets, we are able to access institutional-quality traditional investment managers and alternative investment managers, otherwise closed to new or individual investors.

Implementation and Monitoring

Our investment advisors oversee the implementation process using Sentinel Trust-managed strategies in concert with client-directed managers. Our goal is to minimize tax and transaction costs. Tactical tilts in the portfolio reflect our Chief Investment Officer’s macroeconomic views and short-term market expectations.

We meet regularly to assess performance and portfolio positioning in a clear, comprehensive way. Investment advisors and relationship officers work collaboratively to ensure that the portfolio is always appropriate for a family’s changing needs.

INSIGHTS

Markets – July 2019

U.S. and European central banks promised to take precautionary “insurance” measures despite full-employment conditions in much of the developed world that could cause inflation. Their concern was that trade-war-related uncertainties might favor the deflationary forces of the ever-worsening global manufacturing recession over late-stage economic-expansion pressures, thereby threatening the vibrant services economy.

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POSTED IN: Market Perspectives

Markets – June 2019

While the re-emergence of disappointing economic news suggested that global growth was decelerating, it was politics that spooked markets in May. It came in the form of an unexpected 9th inning breakdown in U.S./China trade talks and subsequent signs that President Trump might view bilateral tariff and company-specific threats as a core part of his expanded toolkit for “winning” (on both the employment and election fronts).

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POSTED IN: Market Perspectives

Markets – May 2019

At one level, April developments are easily summarized: the combination of reassuring economic reports across leading economies, even more supportive central bank policies (a luxury made possible by quiescent inflation), and hopes for a finalization of a comprehensive U.S./China trade deal propelled risk assets to their fourth consecutive monthly gain.

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POSTED IN: Market Perspectives

Markets – April 2019

The Federal Reserve Board (Fed) somehow managed to overshoot markets’ already dovish expectations by unexpectedly moving guidance directly from a rate hike bias to one of rate cuts without stopping at “pause.” This “miracle drug” not only drove a massive move downwards in global bond yields from already low levels, but anesthetized equity investors from concerns over fundamentals such as declining economic growth and corporate earnings.

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POSTED IN: Market Perspectives