Trust provides economic outlook, honors retiring president
The Sanibel Captiva Trust Company presented its Annual Economic Outlook program to over 120 guests at The Sanctuary Golf Club. Senior Portfolio Manager Gary Dyer joined Chief Investment Officer Ian Breusch in dissecting last year’s investment and economic activity and addressed how to approach investing in 2019.
“The volatility of 2018 is more normal than most investors realize,” Breusch said, “whereas 2017 was rising, but uneventful.”
He emphasized that the ups and downs of the stock market happen often and provided 30 years of data on how attempting to “market time” investments typically has a negative effect on values in portfolios over the long term.
“The U.S. has a strong economy,” Dyer said, “and we anticipate fairly strong corporate growth in 2019.”
Understanding that the natural flow of the economic life cycle anticipates a recession sooner than later, the investment team does not believe it to be imminent in 2019 and that owning good companies continues to position investors for good opportunities.
Following the economic outlook portion of the program, Director of Research Timothy Vick served as host during a lively town hall session with retiring President Richard Pyle. Pyle addressed his views on the future of investing and the company, while answering questions and generating some light-hearted moments.
“Dick has been with the Trust Company for 16 years and has been instrumental in setting the guiding principles of our firm’s investment philosophy and process for the benefit of clients and shareholders,” Al Hanser, chairman and founder, said. “We are deeply indebted to him as a colleague and a friend.”
Asked about how his journey to company came about, Pyle explained:
“My wife, Nathalie and I kept a vacation home on Captiva since 1998. In 2001, when The Trust Company was founded we began to receive some promotional materials about the firm. I was very familiar with Al Hanser’s reputation in the industry, since he was at Resource Trust in Minnesota while I had my career up there as one of the three founders at Winslow Capital Management. We lived very parallel lives and had mutual friends, but had never actually met.”
“The kids were grown and we were considering relocating,” he continued. “So I thought that Al would one day need a chief investment officer for the firm. I contacted Al in February of 2003 and introduced myself, and by April I had begun work here on Sanibel.”
Vick asked what Pyle was responsible for at the foundational level.
“I built out the investment team,” Pyle said. “You were already working for us up in Chicago. I established protocol on how our firm determines its investment philosophy and process. Our motto was ‘keep it simple’ so clients understand what they own and why. I brought Winslow’s investment philosophy and process to The Sanibel Captiva Trust Company. It’s very disciplined and it works.”
He was questioned on how he feels about the remaining investment team’s ability to manage client portfolios and stay on track going forward.
“I have a high degree of confidence that our investment team has the wisdom and clear vision to carry the firm down this well-defined path for the benefit of our clients, employees and shareholders,” Pyle said. “Also, as part of our succession plan, we’ve been very thoughtful in building a team that assures we will have the necessary talent available for our clients. Gary Dyer joined our investment management team over the summer and has more than 25 years of wealth management experience. We’ll be making some other strategic hires in the near future as well. Of course, Al Hanser, our founder and chairman will serve as president beginning March 1.”
Vick also asked what his favorite things about the community are.
“The relaxed attitudes are a pleasure and our residents’ commitment to the environment and wildlife,” Pyle said. “Everyone on the islands has a fascinating story, and I really enjoy asking them about their lives. I’ll have time to do a lot more of that now.”
Pyle retires at the end of February.