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Allen Trust Company
2008
Anniversary Letter
Dear Friends, Clients, and
Colleagues of Allen Trust Company and Allen Capital Management:
It’s been two years since I’ve reported to you on the progress of
our company, but contrary to the media’s doom and gloom, there is no
recession here at our office. Luckily here at Allen Trust Company we
are hitting our stride. It looks like our hard work and dedication
has paid off. With our impressive track record, we are now regarded
as an established company with staying power. But first a reflection
on 2007.
Allen Capital Management grows up fast
Our rebirth of Allen Capital Management (ACM) went well in 2006 and
I am pleased to announce that in 2007, our first year after
transitioning most of our pure investment management clients over to
ACM, our assets under management have increased some 35%.
In response to this increase in business, we have added a new member
to our investment team. Monica Poveda has joined us as an
Assistant Portfolio Manager. She performs investment research
and analysis and assists in all aspects of managing client
portfolios. An MBA from the University of Oregon with a BS,
magna cum laude, from the University of Tulsa, Monica is pursuing
her Masters of Science in Financial Analysis (MSFA) at
Portland State’s School of Business and is a Level I candidate in
the Chartered Financial Analyst (CFA) program. Thank goodness
she has such energy! She literally runs between tasks like the
workers at Les Schwab.
Also in 2007, we held steadfast to our investment discipline, and
with Bill’s steady hand, and help from our investment committee,
were able to shepherd your portfolios to sound returns for the year.
Our equity outperformance was attributable to opportunism and risk
control. We are also proud of our bond performance. While they
slightly lagged the index on a pre-tax basis, they improve
significantly on an after-tax basis due to our considerable
municipal bond holdings; moreover, our high quality holdings were
less volatile, having a standard deviation nearly a quarter lower
than the index’s.
Allen Trust Company
At Allen Trust Company, we continue to do our work, going about the
business of managing our clients’ financial affairs. Our best
prospects come to us the old-fashion way: by direct referral from
our existing clients. This method has proven very successful. First
of all, when clients send referrals, they are clearly communicating
to us we are meeting (and hopefully exceeding) their needs. Second,
client referrals allow us to spend more time with clients and
addressing their concerns and less time on marketing. Third, and
perhaps most important, we understand that your credibility is on
the line when you refer someone to our firm. Be assured that we
acknowledge the trust you place in our company and are striving
every day to increase our service levels as well as our competency
in a wide range of areas. We will not let you down in this regard.
Please keep our firm in mind as you talk with people who you feel
might benefit from our services. Our target market continues to be
defined as follows:
Client Profile
• Clients who appreciate the value of integrating one’s financial,
estate, tax, investment and philanthropic plans into one holistic
approach;
• Net worth between $1 and $20 million;
• Investors who do not have the expertise and/or the time to manage
their financial affairs;
• Clients who want to work with individuals who have high integrity
and service quality standards;
• Investors who want someone they can trust;
• Investors who desire a fee-only and not commission-based
relationship and have no ties to a single investment platform.
One change of significance is our new minimum of $1 million for
Trusts and $500,000 for Investment Management clients. In the
past, we did take smaller accounts, but to maintain our quality of
service standards and be the best firm we can be for our existing
clients, we cannot continue to do so. That said, if we are already
named in a document and have made prior commitments to you, we will
honor them. Also, because we want to keep working for a better
community, we will continue to exempt charitable accounts from the
minimum thresholds.
On behalf of the Board of Directors and our staff, I thank you for
your continued support of our firm. I am extremely proud of our
accomplishments and feel confident our hardest years are behind us.
Please know that we come to work every day dedicated to being the
best at serving our clients and the community.
Very truly yours,
Stuart B. Allen, JD, CTFA
President and CEO
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