SunTrust 2006 Annual Report Download - page 67

Wealth and Investment Management
Wealth and Investment Management provides a full array of wealth management products and
professional services to both individual and institutional clients. Wealth and Investment Management’s
primary segments include Private Wealth Management (“PWM”) (brokerage and individual wealth
management), Asset Management Advisors (“AMA”) and Institutional Investment Management and
Administration.
The PWM group offers professional investment management and trust services to clients seeking active
management of their financial resources as well as a full array of loan and deposit products to clients.
AMA provides family office solutions to ultra high net worth individuals and their families. Utilizing
teams of multi-disciplinary specialists with expertise in investments, tax, accounting, estate planning
and other wealth management disciplines, AMA helps families manage and sustain their wealth across
multiple generations.
Institutional Investment Management and Administration is comprised of Trusco Capital Management,
Inc. (“Trusco”), retirement services, endowment and foundation services, and corporate agency services.
Trusco is an investment advisor registered with the Securities and Exchange Commission which serves
as investment manager for the STI Classic Funds and many of Wealth and Investment Management’s
clients. Trusco also includes Seix Advisors, the fixed income division of Trusco. Retirement services
provides administration and custody services for defined benefit and defined contribution plans as well
as administration services for non-qualified plans. Endowment and foundation services provides
administration and custody services to non-profit organizations, including government agencies,
colleges and universities, community charities and foundations, and hospitals. Corporate agency
services targets corporations, governmental entities and attorneys requiring escrow, sub-accounting, and
custodial services. On September 29, 2006, SunTrust sold its corporate Bond Trustee business unit with
$21.2 billion in assets under administration to U.S. Bank for net proceeds of $112.8 million cash. The
sale of the business was part of an effort by the Company to modify its business mix to focus on its
high-growth core business lines and market segments.
Corporate Other and Treasury
Corporate Other and Treasury includes the investment securities portfolio, long-term debt, end user
derivative instruments, short-term liquidity and funding activities, balance sheet risk management, and
office premises. Beginning in January 2006, the majority of the support, operational, and overhead costs
associated with the major components of Corporate Other and Treasury have been allocated to the
functional lines of business with the cost recovery recognized in Corporate Other and Treasury. These
components include Enterprise Information Services, which is the primary data processing and
operations group; the Corporate Real Estate group, which manages the Company’s facilities; Marketing,
which handles advertising, product management, customer information functions, and internet banking;
BankCard, which handles credit card issuance and merchant discount relationships; SunTrust Online,
which handles customer phone inquiries and phone sales and manages the Internet banking functions;
Human Resources, which includes the recruiting, training and employee benefit administration
functions; Finance, which includes accounting, planning, tax and treasury. Other functions included in
Corporate Other and Treasury are operational risk management, credit risk management, credit review,
internal audit, legal and compliance, branch operations, corporate strategies, procurement, and the
executive management group.
Management Reporting Methodology and Reconciling Items
The Company continues to augment its internal management reporting methodologies. Currently, the
LOBs’ financial performance is comprised of direct financial results as well as various allocations that
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