In Ken Homan's 25 years in finance, the markets have had some interesting moments.
But trends during the past 10 years have him re-examining investment strategies for clients who entrust their investments to Springfield Trust & Investment Co.
"The focus will always lie in keeping people in a plan that makes sense long-term," Homan explains. "That they don't get side tracked by current events and noises that don't have a long-lasting impact on long-term results."
But, he adds: "In light of what's happened twice in this decade, I'm doing quite a bit of work to see if some kind of a hedge position is appropriate in bear markets."
That means looking at ways that might dilute market risk or examining different asset classes for potential investments.
"Over the last 10 years, (Wall Street has) had an average annual return that's barely positive. Historically, we would expect over 10 percent," Homan says.
Homan is personally responsible for managing $350 million in client assets and acts in a supervisory capacity for another $250 million to $300 million.
Homan entered Missouri State University with no interest in finance. After taking a few business courses and having the opportunity to learn under good instructors, his interest in finance was piqued.
He began his career as a securities analyst for Mercantile Trust in St. Louis. After a three-year stint with Newhard Cook & Co. in Springfield, he returned to Mercantile Trust as a portfolio manager. He remained with Mercantile until acquisitions, first by Firstar, then by U.S. Bank. He joined Springfield Trust in April 2003.
While Springfield Trust finished 2009 finalizing a merger with Central Trust & Investment Co., Homan says clients are unlikely to see any significant changes.
The merger "opens some opportunities of working with ... a larger company that has some additional tools available, but not so large they will force their investment strategies or business models on us," he says of the two companies, which manage a combined $3.6 billion in assets.
Homan is actively involved in the community, most notably as chairman and a citizen representative of the Springfield Police and Fire Pension Board of Trustees.
The pension - underfunded by as much as $200 million in 2009 - was the subject of a yearlong debate, but with the Nov. 3 passage of a city sales tax to bolster the fund, Homan sees reason for optimism.
The next steps Homan expects include the board hiring an administrator/director, which would allow for speedier actions and closer monitoring of issues of interest to the board.
"The actions of the pension board, and the financials of the pension system, will continue to be an open book to the public," Homan says.
This installment of Springfield Business Journal’s Architects & Engineers Project Report showcases 26 endeavors by area design and engineering professionals.
