First Command Bank Investment Management Services

The First Command Bank Trust Department provides Investment Management services. Investment Management Accounts (“IMA”) are designed for high net worth individuals who desire and need catered service with full flexibility in the composition of their portfolio. IMAs may also be the right solution for non-profit groups. IMAs offer exclusive tailored services not available in other First Command products.

IMA Characteristics

1. Minimum account value: $500,000

   Each account must have a value of at least $500,000.

2. Inclusion of multiple security types

   IMAs may include mutual funds, individual stocks, exchange traded funds (ETFs), and individual bonds.

3. May be funded in multiple ways:

   1. Liquidation. Assets are liquidated and proceeds are sent to the IMA for investing.
   2. Transfer in kind. Assets are transferred from their present account (investment firm, broker/dealer, or bank) and placed in the IMA (transferring assets in kind is not a taxable event).
   3. Cash deposit. You may fund an IMA with cash.
      

4. Individualized portfolios

   IMA portfolios tend to be very much individualized based on each client’s risk tolerance and investment objective.

5. Access to Account Information

   Trust Command is available at the First Command Bank website (www.firstcommandbank.com; Quick Links) for both clients and advisors to view IMA holdings and transaction history. The website can show a complete transaction history and can be customized by the client and advisor.

6. Work Directly with Client’s Tax Advisor

   With proper authorization, the Trust Department will work directly with your tax advisor when managing your account to ensure coordination of your entire investment picture.

7. Client Discretion

   You can establish the level of discretion allowed in the management of your account. Most allow the Trust Investment Manager to have full discretion in managing their accounts, but you can elect to limit that discretion, requiring the Trust Investment Manager consult with you for all or certain transactions.

8. Periodic Distributions or Investments

   IMAs can be set up to make periodic distributions (monthly, quarterly, semi-annually, or annually) to pay reoccurring bills, or transfer dollars into your checking account to support your monthly standard of living. Also, you can elect to make periodic investments into your IMA.

9. Payment of Estimated Taxes

   IMAs can pay estimated taxes to both the federal and state governments, if desired by you.

10. Effective Oversight

    IMAs are a bank product and currently fall under the regulatory authority of the Office of Thrift Supervision (OTS). The Trust Department is examined by the OTS every 15 - 18 months. Additionally, the Trust Department is audited annually by an independent accounting firm experienced in bank trust operations.

How safe are IMA assets?

Even if a bank or trust company fails, investment management assets are safe. By law, trust assets must be kept separate from all other bank assets. For example, they cannot be loaned out, mixed with the corporate trustee’s own assets or used to satisfy its creditors. Because of these safeguards, trust assets are not insured by the FDIC.

Summary

IMAs offered by First Command Bank are tailored asset allocation portfolios using primarily equity and bond mutual funds but can also include individual stocks, ETFs and/or bonds. IMA portfolios may be established by investing proceeds from security liquidations, cash contributions or transferring existing securities in kind to the IMA.

IMAs can be the right solution for you. IMAs offer exclusive tailored services. If you are interested in learning more about our IMA product, call the FCB Trust Department at 888-763-7603, option 3, and talk directly with a member of the IMA team about the suitability of an IMA for your situation.