We live in a world of changing economic climates. As part of our management process, King Financial Corporation continually monitors client portfolios to ensure that it progresses toward your goals, regardless of the changing economic climates. Our systems monitor for any need to adjust the lineup of managers or the relative weight of the various styles, depending on whether the economy is in recovery, expansion or under duress. In addition to the ratio of stocks, bonds and cash inside a portfolio, we also continuously reviews the portion of the portfolio assigned to each independent investment manager. This ability to adjust to economic changes is designed to lessen volatility of returns.
Adjusting to Changing Economic Climates
Because asset classes perform differently over time, the original allocations you determined for your portfolio (for example, 60% stocks/40% bonds) can also change over time as assets grow or shrink from market movements. So your portfolio could end up looking very different from where you started, even though your original allocation is where you should be. So we look at your portfolio periodically and make corrections needed (by buying or selling assets) to maintain your desired allocation.