Provident Trust Company (“Provident”) was founded in 1999 to provide integrated
financial forecasting, portfolio management and trust services. The principal owners of
Provident are J. Scott Harkness (the Chairman and Chief Executive Officer) and various
trusts for the benefit of his spouse and children. Provident manages equity, balanced and
fixed income portfolios, serves as adviser to an open-end mutual fund and serves as a
model portfolio adviser to one or more unified managed accounts.
Equity Strategy: Provident utilizes a multi-cap core growth strategy with the goal of
exceeding inflation and the S&P 500 Stock Index over full market cycles. Stocks of small,
medium and large capitalization companies will be utilized with an emphasis on the
company size that represents the best relative value. Stock selection concentrates on
companies with above-average historical sales and earnings, and an outlook for
continuation of those trends. The maximum equity exposure ranges from 90% to 100% of
the portfolio, as mutually agreed upon by the client and Provident in a written investment
objective statement which is subject to review and modification if the client’s needs, goals
or risk tolerance change over time.
Balanced Strategy: Provident combines our multi-cap core growth equity strategy with our
fixed income strategy to produce a balanced portfolio of individual stocks, fixed income
exchange-traded funds (ETFs) and/or bonds and money market instruments. The goal is to
grow the portfolio faster than inflation over full market cycles. The maximum equity
exposure generally ranges from 50% to 85% of the portfolio, as mutually agreed upon by
the client and Provident in a written investment objective statement, which is subject to
review and modification if the client’s needs, goals or risk tolerance change over time.
Fixed Income Strategy: The fixed income strategy’s goal is to provide steady income and
principal stability with returns that match the appropriate fixed-income benchmarks.
Provident primarily utilizes fixed income ETFs and individual fixed income securities to
provide exposure to domestic and global fixed income markets. Provident primarily invests
in publicly issued, U.S. dollar-denominated, high quality, investment grade, corporate,
sovereign, U.S. government, fixed and variable-rate, taxable and municipal fixed income
securities with remaining maturities between one and ten years and
index based, fixed
income ETFs that emphasize similar investments. Provident does not typically engage in
active bond trading or interest rate anticipation strategies. Fixed income accounts will
generally be invested up to 100% in fixed income ETFs and/or individual fixed income
securities; however, to the extent that equities are utilized the maximum equity exposure
will generally range from 0% to 45% of the portfolio, as mutually-agreed upon by the client
and Provident in a written investment objective statement, which is subject to review and
modification if the client’s needs, goals or risk tolerance change over time.
Investment Restrictions: Clients may impose investment restrictions on Provident, for
example: clients may restrict the purchase of certain securities or the employment of
certain investment strategies in their accounts.
Provident Trust Strategy Fund: Provident provides discretionary investment advisory
services to Provident Mutual Funds, Inc., a registered investment company, as adviser to
the Provident Trust Strategy Fund (the “Fund”), a no-load, open-end mutual fund. For
more information about the Fund (PROVX), please see the most recent Prospectus.
Managed Account Programs: Provident may serve as a portfolio manager for managed
accounts, unified managed accounts or similar programs sponsored by unaffiliated
financial services firms, such as investment advisers and broker-dealers. Managed account
programs allow clients to have their accounts managed by one or more participating
portfolio managers. The program sponsors provide a variety of services to clients,
including reviewing their financial situations, recommending portfolio managers and
monitoring and reviewing the performance of portfolio managers. Depending on the
program, the clients may enter into an investment advisory agreement with either the
sponsor or Provident. Under a unified managed account program, Provident may provide
recommendations and nondiscretionary investment advice regarding the construction and
maintenance of a model portfolio to be used in the management of client accounts by the
sponsor or overlay manager. The fees for these programs may vary from the schedule of
fees set forth in Item 5 below, and from program to program.
Assets Under Management: As of December 31, 2023, Provident managed $5,742,900,267
of client assets on a discretionary basis and $181,777 on a nondiscretionary basis.