Fiduciary Trust Company Business Plan

Document Sample
Fiduciary Trust Company Business Plan Powered By Docstoc

Fiduciary Trust Company, located at 175                                                      has flourished under the management of
Federal Street in Boston, stands as one                                                      Daniel A. Phillips, who has served as its
of the city’s oldest and finest financial                                                    chief executive since 1992. During his
institutions. Its origins date to the late                                                   tenure as president, chief executive officer
nineteenth century, when Boston’s emer-                                                      and director, Phillips has overseen a num-
gence as a flourishing capital market                                                        ber of highly successful business innova-
led to the creation of trust companies                                                       tions, including the company’s growth as
to manage, enhance and preserve newly                                                        an employee-owned business following
acquired wealth. Founded in 1885 by                                                          implementation in 1986 of an employee
Robert H. Gardiner as the Gardiner Fam-                                                      stock ownership plan. Phillips charac-
ily Trust office, the business functions                                                     terizes staff continuity and accumulated
today much as it did then in its manage-                                                     experience as positive consequences of
ment and care of investment property,                                                        the ownership plan: average length of
continuing in the tradition of preservation                                                  service for investment officers is 15 years,
of family wealth for present and future        President and CEO Daniel A. Phillips.         with managing directors averaging 20
generations.                                                                                 years of service. Company ownership by
   Fiduciary’s clients—some direct de-         Firm professionals, serving as trustees,      its own directors, officers and employees
scendants of those originally served by        investment managers, executors and cus-       also generates an institutional indepen-
the company—continue to benefit from           todians, work as a unit to provide clients    dence, which affords safety from the
the firm’s straightforward objectives of       with specialized services, including finan-   mergers and consolidations that have
gradual wealth accumulation in conjunc-        cial planning, income and estate tax          become part of today’s economic mar-
tion with capital preservation over time.      guidance and preparation, educational         ketplace.
The headquarters of Fiduciary Trust Company.   funding, family and charitable gifts, and         Phillips’ signature contribution to firm
                                                      the establishment and ongoing ad-      management has been his singular cham-
                                                      ministration and review of trusts      pionship of women in the workplace. A
                                                      and estate plans. The founders’        distant cousin of nineteenth century
                                                      provision of investment and trust      suffragette Susan B. Anthony, he has
                                                      services as their sole objective       appointed seven women to Fiduciary’s
                                                      continues to be honored at Fi-         25-member Board of Directors. One half
                                                      duciary, which has resisted diver-     of the firm’s current staff members are
                                                      sification despite industry trends.    women. The Boston Club, an association
                                                          Clients today benef it from        dedicated to increasing the number of
                                                      business practices established over    women on corporate boards, applauds
                                                      100 years ago: Fiduciary profes-       Phillips for “working ceaselessly on this
                                                      sionals manage wealth vigilantly,      mission.” During their 25th anniversary
                                                      and on an individual basis, for        in 2002, the organization presented him
                                                      long-term investors with accumu-       with a Special Award for Leadership in
                                                      lated capital who wish to enhance      the Advancement of Women to Fiduciary.
                                                      and protect its use for their life-    He characterizes his views in a February
                                                      time and secure its safe transfer to   8, 2002 article in the Boston Business
                                                      future generations. Toward this        Journal, stating that not only is support
                                                      end, younger family members are        of women the right thing to do, it is good
                                                      brought into the estate planning       for business. Women account for more
                                                      process to prepare them for the        than half of the population, and their per-
                                                      responsibilities of inherited          spective on business decisions is valuable.
                                                      wealth. Professional advisors          Professional women have a strong advo-
                                                      serving generations in one family      cate in Phillips, who also notes that much
                                                      strive to establish a responsible      remains to be done in breaking down “the
                                                      lifetime approach to the care and      old-boy network.”
                                                      prudent use of wealth.                     Phillips also expresses pride in
                                                          The company, which manages         Fiduciary’s commitment to community
                                                      over $10 billion in client assets,     service, which has included local under-

                                                                                                          CHRONICLES OF LEADERSHIP

                                                                                                             tion with the corporate gover-
                                                                                                             nance model adopted by the
                                                                                                             company’s Board of Directors in
                                                                                                             1999, with an emphasis on the
                                                                                                             use and implementation of state-
                                                                                                             of-the-art computer technology
                                                                                                             for the benef it of both staff
                                                                                                             members and clients. Accord-
                                                                                                             ingly, 2001 saw an upgrade to
                                                                                                             Fiduciary’s Internet website with
                                                                                                             the addition of the Private View
                                                                                                             program, which allows clients
                                                                                                             to view their accounts via the
                                                                                                             Internet. The company’s LAN
                                                                                                             system was ref ined and en-
                                                                                                             hanced, as was Global Plus, its
                                                                                                             computerized trust system.
                                                                                                                Its 135 employees continue to
                                                                                                             be Fiduciary’s greatest asset.
                                                                                                             Service awards distributed during
Officers and directors, left to right: Charles C. J.   Poor’s 500 index. The company’s policy       the 2001 company dinner included
Platt, Jonathan R. Phillips, Susan R. Gunderson,       of careful investment selection, measured    awards honoring 12 employees for 270
Daniel A. Phillips, Charles R. Eddy, Douglas R.
Smith-Petersen, Robert N. Karelitz and Robert G.       investment diversification and individual    years of service. One award honored 35
Holdway.                                               portfolio supervision led again to an        years of service while three others hon-
writing of public television station                   above average return for clients. Earn-      ored employees retiring after 30 years.
WGBH in Boston. Many employees pro-                    ings per share for the year increased by     State-of-the-art technology enhances
vide pro bono service to various nonprofit             15 percent, and company revenues ex-         portfolio management, but it is best used
community organizations, educational                   ceeded $40 million for the first time in     with the values of, in Phillips’ words, the
institutions, foundations and cultural                 its history. The market value for a single   “human judgment and interpersonal
institutions, including national organiza-             stock share, while down 2 percent in         skills” that remain the cornerstone of
tions such as the United Way, the Y.W.C.A.             2001, showed a very strong market per-       Fiduciary’s success.
and local organizations as diverse as the              formance throughout the ’90s, including
Paul Revere Memorial Association and                   an increase of 57 percent in 2000.
                                                           In the fall of 2001, Fiduciary adopted   A meeting of the investment committee, left to right:
the Christmas in the City Foundation. Em-                                                           Charles C. J. Platt, Paul G. Curtis, Douglas R.
ployee commitment to such organizations                a new strategic plan for management. Its     Smith-Petersen, Alicia F. Manning, Thomas A.
is in keeping with the CEO’s goal of offer-            implementation would work in conjunc-        DeMarco, Laura N. Rigsby and W. Douglas Burden.
ing employees an integrated balance that
includes “their productive work, their
immediate and extended families, and
our shared responsibility to the commu-
nities in which we work and live.” The
company also places a high value on staff
training, and over the past decade has
offered education in many areas, in-
cluding motivation, stress and time
management, diversity, communication,
technology, violence in the workplace
and sexual harassment education.
    Two-thousand one proved to be a very
good year for Fiduciary and its clients,
despite representing the second year of
negative returns for the Standard &


Description: Fiduciary Trust Company Business Plan document sample