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Phone: 978-283-7079

Senior Couple ExercisingInvestment Management

The Trust & Financial Services Department has been actively managing investment accounts for over twenty five years. Historically, trusts invested monies very conservatively. This stems from the role of trusts in medieval English common law, in which trust assets were typically farmland. The land itself was the principal of the trust; the crops the land produced were income. As the economy evolved and trust assets became more liquid, a tradition of absolute aversion to any loss of investment principal remained. Only within the last two centuries have the courts and trustees adopted a more liberal interpretation of what constitutes a prudent trust investment.

The Prudent Investor Rule

Today, the Trust & Financial Services Department holds itself to the standard of a prudent investor. A prudent investor diversifies their investments across asset classes. This way, literally and figuratively, their eggs are not all in one basket. A prudent investor minimizes risk by investing broadly across the market.


Asset Allocation

Studies have shown that the greatest investment gains originate from how an investor allocates their assets across asset classes rather than selecting individual stocks. Our Department invests according to these principles. We do not chase the stock of the moment. Cape Ann Trust & Financial Services recommends investments based on value, quality, and potential for long-term appreciation.


Investment Choices

Investment choices include stocks, bonds, mutual funds, fixed income investments, and alternative investment classes including: real estate investments, trusts, international equities and specialty funds.


Green Investing

The Trust & Financial Services Department responded to their clients by unveiling a series of values-based investments, sometimes referred to as "Green" investments. These investments originate from the values of the individual investor. Originally, this type of investment avoided "sin" stocks, that is, businesses deriving revenue from alcohol, tobacco, or gambling. Today, values-based investments derive from an investor's desire to support sustainable energy, human rights, or further other ecological concerns. We call these investments socially responsible investments, or SRIs. The Trust & Financial Services Department offers a series of SRIs to suit our clients’ needs.