| For each account
relationship, there is a governing document (Will, Trust, Agency Agreement)
which outlines our duties and responsibilities. We implement
the investment or service plan provided therein. In the majority
of the account relationships, some part of our duties involve investment
management. Unless we are following strict directions in the
governing document, we generally identify the investment objective
for the account, implement that objective with securities, provide
periodic reports and occasional conferences with the client as seems
suitable and appropriate under the particular circumstances.
As the relationship develops, our services will often include some
degree of financial planning including estate tax plans, lifetime
gifts, budgeting, etc. referring to the client's attorney or accountant
as appropriate.
Reports or statements on each account
are provided monthly, quarterly, semi-annually or annually depending
on the client preference and the nature of the account. The
statements generally show all receipts and disbursements as well
as a list of the assets with a current market value.
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| Our investment and administrative
services, including trust agency, estate settlement and
conservatorship, have a minimum annual fee, pro-rated where the account is in existence for less than
a year. We have a published schedule of services
and fees which is applied unless there are unusual circumstances that make
the regular schedule inappropriate in which case the fees are negotiable
with reference to the published schedules. Our fees are based on the
value of the assets under management and on the time and responsibility
assumed in providing the fiduciary services. Fees are generally
charged monthly to the account and there is no penalty for closing an
account and no termination fee although we are entitled to be reimbursed
for actual expenses in transferring or distributing assets. |
| We have a contractual relationship
with Wright Investor's
Service, Marathon Capital and Feldman Securities Group which are all federally Registered Investment Advisors.
They each provide economic
forecasts, securities analysis and recommendations including an approved
investment list, asset allocation guidelines and recommendations,
individual account portfolio review and recommendations, investment
performance review and analysis. We have some portfolios which
are not specifically assigned to these three managers because of size, investment restrictions
or objective which we judge do not require active management but even
in those portfolios, we follow their general guidelines and approved
investment lists. Ultimately, all of these managers recommendations are
subject to our approval. Fees paid to these managers are paid by First
Southeast Fiduciary & Trust and do not add to the account fees
as described herein.
The procedures by which securities are
selected for purchase by Wright Investor's
Service, Marathon Capital and Feldman Securities Group constitute a systematic, well-disciplined,
objective process of investment information collection, processing,
analysis and evaluation. Their investment disciplines avoid following
market fads that create short term over concentrations in certain groups
of industries, frequently without regard for either quality or value.
All trade transactions are made by
and through third parties; we do not provide any execution of securities
purchases or sales. The governing instrument determines what
discretion the Trust Company has; it ranges from full discretion,
to shared with a co-trustee or similar advisor, to none where the
client directs the investments. The discretion for determining
brokerage services, including pricing, follows the governing instrument;
generally, the Trust Company selects a broker who is unaffiliated
with itself so as to separate the apparent conflict of self dealing
and takes into consideration the timeliness and accuracy of executing
trades and the cost.
In dealing with client funds, we act in a
fiduciary capacity and do not participate in client transactions as
principal, broker, or agent and do not buy or sell separately owned
securities.
Account investments are reviewed within
60 days of receiving the assets and at least annually thereafter.
Accounts are reviewed on request or when circumstances change, whether
the change is internal within account assets for example or external
where there is a change in the client's or beneficiaries' financial
status. Generally, where there are no unusual requirements,
accounts are scheduled for semi-annual investment reviews.
The reviews are done informally with at least two trust officers
and an investment representative when applicable and, formally,
at the monthly meeting of the Trust Investment Committee.
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