Washington Trust uses a wide variety of research tools to help identify our core equity selections.
"Since the beginning, our success has been defined by exceptional customer service and understanding and meeting the needs of our customers. Washington Trust Bank has earned the trust and confidence for more than 100 years."
Large Cap Core Equity
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.
A Highly Disciplined Process
- Two independent equity research firms and over 80 analysts supplement our internal analysis of individual companies and industries.
- We apply a six-step screening process to narrow the selection to approximately 300 stocks.
- We analyze and select stocks based on: industry, growth, financial strength, management assessment, risk and valuation.
- From the 300 stocks, we filter a preferred list of 30 to 40 companies.
- A “buy” rating will be assigned if the forecasted risk-adjusted return on the stock is greater than the forecasted return on the market.
- A “sell” rating will be assigned if it is fully valued, displaced by a better idea, has deteriorating fundamentals or suffers onerous, unexplained price fluctuations.
- Continuous audit and control processes ensure consistent delivery.
- Average Annual Returns
- Audited and Verifiable Track Record
- Performance During Difficult Time Periods
- Style Consistency
- Management Team
- Business Strategy and Process
- Capacity to Execute Strategy
- Market Niche
- Decision Making Structure
- Risk Assessment
- Competitive Pressures
- Regulatory and Tax Environment
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.
- Identify economic and market conditions that will affect fixed income markets
- Identify interest rate conditions and actions of global Central Banks
- Identify the impact to the yield curve based on the economic and interest rate analysis
- Determine what segment of the fixed income market represents the best value, given the economic, interest rate and yield curve analysis
- Analyze company financials
- Conduct risk/reward analysis
- Conduct scenario analysis
- Identify specific securities that represent the best value based on financial, risk/reward and scenario analysis
- Continuously monitor fixed income securities for credit quality and marketability
We access and monitor fixed income markets through a variety of unbiased sources:
- Subscribe to multiple databases, which allows conducting unbiased analysis.
- Utilize the purchasing power of Washington Trust Bank to access securities and prices that may not be available to an individual investor.
- Access data that allows monitoring of prices paid and received for securities to ensure that best execution occurs for our clients.
Without knowing with certainty 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.
Alternative strategies serve three primary roles:
- Improve diversification
- Reduce risk
- Provide clients access to institutional strategies that are not available to most individual investors