WTM Investment Philosophy

For both individuals and institutions‚ Wealth and Trust Management offers disciplined investment management that is consistent with client objectives. WTM ensures this consistency through active portfolio management with a preference for individual securities. The client has online access to his/her account information‚ which is updated daily. The portfolio manager and administrative officer conduct regular meetings with the client to review performance and to confirm that the objectives are being met. Investment Management Services include:

  • Active asset allocation
  • Rigorous fundamental analysis of security selection
  • Disciplined‚ opportunistic investing
  • Taxable and tax-advantaged portfolio management
  • Performance measurement


Active Asset Allocation

WTM spends a great deal of time getting to know our clients and their investment objectives in order to ensure that our investment strategy will meet their needs. We work with our clients to determine their initial asset allocation, and revisit this periodically to determine if there have been significant changes that would dictate a modification in their long term goals or investment strategy.

WTM red blue and green Aggressive investment asset allocation pie chart
Primary allocation in equities represents a risk of volatile returns. With such high market risks, this approach is appropriate for long term investment horizons that can withstand significant volatility.

WTM red blue and green Growth investment asset allocation pie chart Growth
Taking under management a larger fixed income position, this allocation presents an above average risk scenario for investors with appropriate risk tolerances. Long-term investment horizons are the focus here.

WTM red blue and green Moderate Growth and Income investment asset allocation pie chart Moderate Growth & Income
Long-term investors may also find this allocation attractive. This represents the most conservative of the long-term approaches, given its relatively large fixed income position. Market risk is above average.

WTM red blue and green Balanced Growth and Income investment asset allocation pie chart Balanced Growth & Income
Intermediate-term is the focus of this allocation. It seeks an average market risk, by reducing equities holdings slightly from Moderate Growth & Income.

WTM red blue and green Conservative Growth and Income investment asset allocation pie chart Conservative Growth & Income
Incorporating less equities is the strategy in this allocation. By still keeping the equities position significant, however, it represents a nice background for growth with an intermediate time horizon.

WTM red blue and green Income and Growth investment asset allocation pie chart Income & Growth
Price volatility will be modest in this allocation. With a significant focus on fixed income securities, this allocation is a conservative play on the market. An intermediate time horizon is the target.

WTM red blue and green Income investment asset allocation pie chart Income
The most conservative approach that still allows equities positions, the Income allocation presents investors with moderate risk and an intermediate horizon. The fixed income weighting is very significant.

WTM red Fixed Income investment asset allocation pie chart Fixed Income
A purely fixed income approach, risk is moderate in relation to the market, and the time frame is intermediate. A conservative play on the market, this allocation is a good alternative for risk aversion.

WTM blue Cash Equivalents investment asset allocation pie chart Cash Equivalents
Similar to fixed income, this allocation allows no equity positions. The focus here is short-term cash holdings. This is for individuals looking for little to no risk and liquidity.

Participant/Client Directed 401(k) Plan

This allocation is entirely up to you, the investor. A blend of strategies that may not fit into a set allocation can be attained here. Mix and match strategies that seem most appealing to your investment objectives.

Disciplined Opportunistic Investing

Investment Approach

Community Trust and Investment Company (CTIC) believes that excellent long-term investment results can be achieved in all market environments by employing a disciplined and opportunistic investment strategy. The most important investment decision is how assets are allocated among different asset classes. Once the asset allocation decision is made, rigorous fundamental analysis is done to select the individual securities.

We take a long-term approach with our investment strategies and focus not only on producing competitive long-term returns, but on controlling risk and avoiding loss. As a sizable institution, we receive substantial discounts in the transaction costs associated with managing your portfolio.


WTM’s investment staff screens the universe of equity research sources to devise a major interest list of between 200-300 issues. From this list we construct model portfolios, which are diversified by industry sector and issue, while consideration is given to earnings, valuation, quality of capital structure, growth prospects, management, dividend yield and relative attractiveness based on economic outlook.

Buy Philosophy

We believe the key to profitable equity investing is not only the business or stock chosen, but the price paid for that investment.

We focus on buying quality companies at or below their intrinsic (true underlying) value while recognizing the difficulty in quantifying in mathematical terms the intrinsic value of an ongoing business. Read more
We use traditional valuation metrics in assessing the proper price to pay for a stock and consider the price paid in relation to a number of factors such as earnings (P/E), cash flow (P/CF), and earnings growth (PEG).

Our equity selections are based not only on financial strength and financial metrics such as return on equity (ROE), return on assets (ROA), and dividend yield, but also consider strongly the quality and integrity of management as well as the relative attractiveness of the underlying business.

We recognize that in the short term, markets are not always rational or efficient, and can be driven by the forces of fear and greed. However, in the long run, markets are efficient and provide excellent returns to those who patiently acquire good businesses at attractive prices.

Sell Discipline

We will sell a stock when:
  1. Fundamental principles of why we bought the stock change.
  2. The valuation has become stretched beyond a prudent level.
  3. There is a better investment opportunity in the industry.
  4. Fraud, deceptive accounting or hidden problems surface.

Taxable & Tax Advantaged

Taxable Accounts

Accounts which are subject to current yield federal taxation such as Investment Management Accounts (IMAs) or entities that are taxed. These accounts are invested in individual stocks and bonds* which allow us to control tax consequences and transaction costs. Equity trading strategies can be employed to manage tax consequences of transactions. Fixed income securities will include corporate bonds municipal bonds and funds that invest in municipal bonds, mortgages and funds to maximize the yield.

Tax-Exempt Accounts

Accounts which are not subject to current yield federal taxation such as IRAs or non-profit entities.
These accounts are invested in individual stocks and bonds* which allow us to control transaction costs. Fixed income securities will include municipal bonds and funds that invest in municipal bonds.

*Individual fixed income securities are subject to minimums. 

Representative Clients

  • Individuals
  • Business Retirement Plans
  • Institutions
  • Non-profits
  • Quasi-Government Organizations
  • Churches
  • Municipalities
  • Foundations