It Takes Quality Investments to Build a Quality Portfolio
First Financial Trust adheres to the fundamental principles of value investing and added value through active management and thorough oversight. Our emphasis on quality originates from the decision to structure investment portfolios to withstand market declines, in some cases significant declines, but also to participate when markets rally. This strategy serves to produce superior long-term results that meet your investment objectives.
We actively manage equity and fixed-income portfolios that are tailored to accommodate your investment return goals, risk tolerance, tax situation, liquidity needs and time horizon.
Our equity portfolios span value, growth and market-oriented styles. They manage the risks of the equity market through the quality of securities selected, the weight each security is permitted to hold in the portfolio and sector weightings. The investment selection process is based on top-down analyses in which our portfolio managers take a macro-view of the equity universe and combine that view with proprietary screens to find the best stocks suited to outperform the market. Most of the holdings are purchased for the long-term, which is evidenced by our low portfolio turnover. Some holdings are sold sooner than planned due to earlier-than-anticipated upside performance.
Our fixed-income portfolios span taxable and tax-exempt styles. They manage the risks of the bond market through the quality of securities selected, the weight each security is permitted to hold in the portfolio and the length to maturity. The investment selection process focuses on a clear understanding of the Treasury yield curve, the many factors that contribute to its slope, and the various relationships between yields across the different maturity time periods. We only invest in the highest credit quality bonds to eliminate credit risk, whether those bonds are corporates or municipalities. The purpose of the bond portfolio is to generate current income and protect principal. We generally buy bonds with credit ratings that are investment grade, excluding the lowest tier of the investment grade spectrum.