Adrian Mastracci, president of "fee-only" KCM Wealth Management, says "This approach is not suitable for everyone. However, the recent market upticks may be an opportunity for some investors to lighten up on the overwhelming exposure to equities."

For Immediate Release

Vancouver, BC (June 12, 2003): Adrian Mastracci, investment counsel & president of Vancouver's “fee-only” KCM Wealth Management, comments on the plight of investors with heavy exposures to equities.

Many investors have been heavily invested in stocks and mutual funds for a long time. Some portfolios I have reviewed have had 80% to 95% invested in a variety of equities.

The continuing dilemma is that these investors are not comfortable with such high concentrations of equities in their portfolios.

These levels of equity require an investor profile in the aggressive to very aggressive ballpark. The portfolios I examined were more suited to the balanced and growth profiles.

What can these investors do now?

We have had a mini bull market in the last three months. This may be an opportunity for these investors to rebalance their overweight equity portfolios closer to their appropriate investor profiles.

Rebalancing involves periodic tweaks to bring the portfolios back into line. Usually with the appropriate targets and asset mix set within the investment game plans.

In my experience, decisions about which assets to own have the biggest influence on the portfolios. Recent studies reached these conclusions:

1. The mix of stocks, bonds and cash, explains on average 94% of the contribution to total returns.
2. Stock selections explain on average 4% of the contribution to total returns.
3. Timing the markets explains on average 2% of the contribution to total returns.

I continue to focus on the portfolio mix that fits the investor profile. Commonly referred to as asset allocation.

Make asset mix a friend and ally. Understanding the asset allocation policies to follow improves investment success.

This approach is not suitable for everyone. However, the recent market upticks may be an opportunity for some investors to lighten up on the overwhelming exposure to equities.

NOTE: The information provided above is intended for general informational purposes only. It does not constitute advice for anyone's specific situation. Everyone should always first consult directly with their advisors to determine the appropriateness of any information contained above before taking any action. KCM Wealth Management Inc. assumes no responsibility for any loss or damage arising from the use of, or reliance upon the above information.