Selecting Appropriate Investment Vehicles

Asset allocation (the process of distributing your portfolio over various asset classes) is widely recognized as the principal reason for a portfolio’s return variations. It is critical to determine an asset allocation strategy with the client’s goals and objectives in mind, balanced against the client’s risk tolerance. It must include more than the risk, expected returns, and the diversification associated with investments. It must include the risk acceptance of the investor.

Part of the job of asset allocation is not only to stabilize returns, but also to help ground emotions.

Rebalancing Procedures From time to time, the basic allocation policy or calculations may be amended. Every quarter, StateTrust will review your portfolio and each asset class in which it is invested.

If the actual weighting differs from the target weighting by 10%, or more from the recommended weighting, we will rebalance the portfolio back to the recommended weighting.