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Special Advertising Section Stock Yards Bank on Evolution of the Wealth Management Team S tock Yards Bank & Trust has found that the role of wealth advisors in its Wealth Management Group has become more complex as the economic and political environments have grown more dysfunctional. Kathy Tompson, Senior Executive Vice President, Stock Yards Bank & Trust, explains: "Te incomplete deals and patchwork economic resolutions ofered by Congress ofer some solace (i.e. more stability in tax legislation), but fail to address issues in their entirety (i.e. budget sequester, debt-ceiling, and entitlement reform). Political battles played out in the public eye have increasingly blurred the lines between fnances, politics and legislation. To manage the fnancial and political landscape, wealth management teams such as ours at Stock Yards Bank have evolved to meet these more complex circumstances." Te traditional wealth management generalist has given way to a team of highly skilled specialists who focus holistically on the Kathy Tompson, Senior Executive fnancial afairs of clients. Tis comprehensive philosophy makes the Vice President, Stock Yards Bank wealth management relationship more meaningful to the client and goes beyond solely focusing on investment Ask the Experts Continued performance. Given the volatile stock market, Tompson believes prudent investment managers should focus on consistent investment Q. Why should I select a bank as my trustee? performance, emphasizing a balance between A. Tere are two primary reasons: risk-taking and risk-mitigation. • ćis country is undergoing its largest wealth transfer in history. With great wealth comes great responsibility—and potential liability. Most While investment performance is important, are best served to appoint professional trustees to handle the legal, tax, an increasing number of wealth management investment, and other technical issues related to trust management. clients are recognizing that investment results • Family ĕghting is common, especially aęer the death of a parent. A are just one aspect of the greater relationship. corporate fduciary provides you with an independent, impartial thirdSuccessful wealth management teams must party to carry out your wishes, which should preserve family harmony. have a knowledge base and pool of resources to deliver estate planning, trust administration, Q. What is your investment philosophy and advice in early 2013? fnancial planning, insurance and banking A. Dividend policy will matter. Not all dividend paying stocks are created solutions. Tese disciplines must be managed equal. Some stocks pay a consistent dividend, some have decreased in unison in order to achieve the client's goals. dividends, and other stocks have ceased dividend payments. Use the For example, wealth management teams must market pull-back to add high quality stocks that have a track record of be able to help an individual (or family) that incrementally increasing dividends. Tese stocks tend to be defensive has various banking needs, several insurance and perform better in volatile times. In addition to equity selection, start to incorporate investment strategies with a negative or low correlation policies, real estate investments, trust to traditional equity and fxed income markets. Tese strategies should documents and may include relationships focus on risk-mitigation, NOT investment performance. with multiple investment advisors. When researching an institution to manage wealth, it is important to keep in mind the staf that will Senior Executive Vice President, Stock Yards Bank and Trust be responsible for overseeing your fnancial —Kathy Thompson 50 LOUISVILLE MAGAZINE 2.13