Moreover, risk management, as a component of your asset allocation strategy, is an essential tool for helping you meet your investment objectives.
Broad diversification at the asset level may be one of the most effective steps you can take to help manage the risk in your portfolio. Limiting your commitment to a single asset class and adjusting your asset allocations based on changing circumstances are also important strategies.
We believe over time, investment performance can alter the asset allocation balance in your portfolio. For example, if an asset class outperforms, appreciation may increase the asset class' weight in proportion to the total portfolio value. In order to maintain your desired exposure to that asset class, it may be necessary to sell enough securities to return your allocation to the originally targeted level.
Rebalancing can help to lower risk and increase the probability of helping you achieve your investment objectives. Based on the impact of transaction costs and taxes, we believe that a portfolio should be rebalanced annually, or whenever asset class weighting deviates from the target by more than 5%.
At PNC, we take every measure possible to help you achieve your investment objectives. We manage asset allocation on an ongoing basis, through tactical risk control, to help preserve the desired level of risk as market conditions change.
Extensive analysis and modeling forms the basis of our tactical allocation shifts, while our advisory team's deep experience and finely honed judgment allows us to fine tune the output of our models. Our tactical shifts in overweighting or underweighting asset classes are based on fundamental assessments of the asset class outlook. We act to help so that you continue to assume only the level of risk that is consistent with your investment guidelines.
The PNC Financial Services Group, Inc. (“PNC”) uses the marketing name PNC Wealth Management® to provide investment and wealth management, fiduciary services, FDIC-insured banking products and services, and lending of funds through its subsidiary, PNC Bank, National Association (“PNC Bank”), which is a Member FDIC, and to provide specific fiduciary and agency services through its subsidiary, PNC Delaware Trust Company or PNC Ohio Trust Company. Securities products, brokerage services, and managed account advisory services are offered by PNC Investments LLC, a registered broker-dealer and a registered investment adviser and member of FINRA and SIPC. Insurance products may be provided through PNC Insurance Services, LLC, a licensed insurance agency affiliate of PNC, or through licensed insurance agencies that are not affiliated with PNC; in either case a licensed insurance affiliate may receive compensation if you choose to purchase insurance through these programs. A decision to purchase insurance will not affect the cost or availability of other products or services from PNC or its affiliates. PNC does not provide legal, tax, or accounting advice unless, with respect to tax advice, PNC Bank has entered into a written tax services agreement. PNC does not provide services in any jurisdiction in which it is not authorized to conduct business. PNC Bank is not registered as a municipal advisor under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Act”). Investment management and related products and services provided to a “municipal entity” or “obligated person” regarding “proceeds of municipal securities” (as such terms are defined in the Act) will be provided by PNC Capital Advisors, LLC, a wholly-owned subsidiary of PNC Bank and SEC registered investment adviser.
“PNC Wealth Management” and “PNC Wealth Insight” are registered service marks of The PNC Financial Services Group, Inc.
Investments: Not FDIC Insured. No Bank Guarantee. May Lose Value.
Insurance: Not FDIC Insured. No Bank or Federal Government Guarantee. Not a Deposit. May Lose Value.
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