Wall Street Transcript Interview with Senior Vice President, Director of Research and the Chief Investment Officer Mark Teichner of Reliance Trust: Utilizing Increasingly Alternative Asset Classes in a Slower-Growth Macro Environment

Wall Street Transcript

67 WALL STREET, New York - September 5, 2012 - The Wall Street Transcript has just published its Large-Cap Value and Other Investing Strategies Report offering a timely review for serious investors and industry executives. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Large Cap Investing - Downside Protection - Value Investing - Risk Mitigation

Companies include: Schroders plc (SDR.L), Franklin Resources Inc. (BEN), and many others.

In the following excerpt from the Large-Cap Value and Other Investing Strategies Report, the CIO of Reliance Trust discusses his asset management process:

TWST: Would you begin with a brief introduction to Reliance Trust, including a bit about the firm's history, its total assets under management, an overview of the services it offers and its client base?

Mr. Teichner: Reliance was officially formed in the mid-1970s as a provider of specialized financial services to the nonprofit industry, acting as a trustee for church bonds. So it's a little more unique as compared to most trust companies. The company went through a rejuvenation in the early 1990s. The current principals of the firm ran Citizens and Southern Bank's trust department. And then when NCNB bought C&S bank; they left; took a controlling interest in Reliance, which was still a small, sleepy trust company; reformulated it into a full-service trust company that now represents over $110 billion in assets, predominantly in the retirement plan market as a directed trustee providing corporate trustee services to financial advisers around the country, as well as direct business within our local geographic reach.

We are the largest independent trust company in the country, as far as we know. Most of the people that are with Reliance came from large bank trust departments and wanted a more flexible, entrepreneurial type of environment, and the growth of assets has reflected that spirit.

TWST: How would you characterize the firm's investment strategy, and what do you believe makes this approach unique?

Mr. Teichner: When the principals came over from C&S, they came from an environment where a proprietary product not always was the top-decile, quartile or even top-half performance, so they went through a process of developing an open architecture manager approach, utilizing best-of-breed managers across the various investment disciplines. So we were early adapters of open architecture, predominantly through mutual funds at the outset. It still represents a majority of the assets under management. A majority of our assets under management are retirement-plan driven.

What sets us apart is the independence and the flexibility that comes about through not having a majority of the assets in proprietary investment product. So as a trust company and a fiduciary of assets, our focus is on end clients and the returns that they are generating. While some of the fees might be slightly higher than a firm that offers internally managed products, the net results through performance often is superior. So there is a little bit of a tradeoff, but the net results are improved performance to the end client.

TWST: So like you said at the beginning, the majority of Reliance Trust's assets are managed by subadvisers. Would you talk a little bit about this network of subadvisers and how you select them?

For more from this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers, and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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