Investments

Asset Allocation

The critical determinant of long term investment returns is asset allocation. At First Kentucky Trust (FKT), we work diligently to discover each client’s return objectives, risk tolerance, and unique circumstances. We then design a durable asset allocation that best addresses each client’s situation and we implement that allocation across a wide variety of asset classes and investment vehicles.

Equity

In the core equity space, FKT consolidates its own proprietary work with outside research from a variety of top tier firms to select individual stocks for client portfolios. Typically, a client’s core equity portfolio consists of 40-50 stocks that are roughly balanced among economic sectors.

To complement a client’s individual stock portfolio, investment professionals at FKT might choose to recommend other equity asset classes, such as small cap, mid cap, international, emerging markets, etc. FKT has developed proprietary screening models to identify top investment vehicles in each space, which may be passively or actively managed.

Fixed Income

Fixed income instruments provide income and stability to an investment portfolio. Within the investment grade sector, for both taxable and tax-free bonds, FKT constructs diversified portfolios of individual bonds with short to intermediate term durations.

In certain cases, within the context of overall portfolio diversification, it may be appropriate to suggest non-investment grade fixed income asset classes for clients, such as high yield bonds. FKT uses mutual or exchange-traded funds as identified by proprietary screening models to implement such a strategy.