2. Introduction – Who we are
• We are an independent financial planning and investment advisory
firm located in Walnut Creek, California
• We were established over 30 years ago, in 1981
• We are a Registered Investment Adviser (RIA) regulated by the
Securities and Exchange Commission
• We provide trusted personal financial advice and professional
investment portfolio management services
• We manage over $250 million in client assets on behalf of
approximately 180 clients
• Our clients include high net worth families, charitable trusts,
company retirement plans, and private foundations
• We are long established institutional business partners with Charles
Schwab and Fidelity Investments. They serve as primary custodians
for our client’s assets
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3. People
• Jim King, CFP®, MBA- Founder and President
• 33 years experience
• BA / MBA – Stanford University
• Scott Horton, CFP®, MS Finance- Principal and Lead Advisor
• 17 years experience
• BS Economics – University of California, Davis; MS Finance – GGU
• Justin Dodson – Financial Advisor
• 12 years experience
• BS Business Administration, Finance emphasis – Sonoma State University
• Nancy Gire, CPA, CFP®, MA, MS- Director of Operations
• 28 years experience
• BA – University of Chicago; MA – Chicago State University; MS – GGU
• Jessica Palmer - Client Service Associate
• Jonathan Gonzalez – Client Service Associate
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4. What we offer
• We draw on time-tested experience and expertise in creating solutions to our
clients’ financial challenges
• Investment management in a manner free from conflict of interest and bias
• No in-house limitations with our investment decisions.
• We operate under the fiduciary standard of care
• We embrace our legal obligation to act in the best interest of our clients
• Fiduciary standard is superior to the Suitability standard
• Brokerage firms generally are not fiduciaries
• We incorporate comprehensive financial planning in our decision making
• We provide superior personal service that builds lasting client relationships
• Quarterly investment reporting
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5. How we manage money
• Decisions are made by Investment Committee
• Meets bi-weekly, process driven
• Comprised of Jim King, Scott Horton, Justin Dodson, Nancy Gire
• We use a structured asset allocation approach to manage and balance portfolio
risk and return
• We enhance diversification by incorporating lower-correlated, non-traditional
asset classes in order to reduce volatility
• We consistently monitor and strategically rebalance client portfolios to maintain
targeted risk and return parameters
• We use both active and passive strategies
• We emphasize low costs
• We invest the substantial majority of our own personal investments in the same
portfolios we recommend for clients
• “We eat our own cooking”
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6. Portfolio characteristics
• Enhanced diversification
• We diversify beyond traditional stocks and bonds by incorporating
meaningful allocations in alternative asset classes and multi-asset
class managers to reduce portfolio volatility
• Minimized fees and expenses
• Institutional and Advisor share class mutual funds
• Passive index mutual funds and exchange traded funds (ETFs)
• Load-waived mutual funds
• Readily marketable securities
• Daily pricing
• Fully transparent
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7. A risk measured approach to asset allocation
Portfolio
Target Beta: .15 .35 .50 .65 .80
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8. We utilize institutional style asset allocation
Traditional Asset Allocation: Institutional Style Asset Allocation:
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9. The problem with the traditional“60/40” portfolio
• Maintaining a balanced portfolio, one that properly manages
risk, is critical.
• Surprisingly, the classic allocation of 60% stocks and 40%
bonds, is NOT a balanced mix.
• The correlation between 60/40 and a 100% stock portfolio is
98%. These two portfolios go up and down in near-perfect
tandem.
• Equities are so much more volatile than bonds that they drive
the entire portfolio’s returns.
Correlation is calculated using monthly returns since 1926. Equity returns
consist of the S&P 500 Index. Bond returns use a combination of the
Barclays U.S. Aggregate Bond Index from its inception on 1/1/76
through 12/31/10 and the U.S. Treasury constant 10-year maturity
index from 12/31/26 to 12/31/75. Data provided by Bloomberg
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10. Alternatives and Multi-Asset class managers offer lower correlated
returns to stocks and bonds, which can reduce portfolio volatility
Alternatives: Multi-Asset Class Managers:
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11. Fees
• Our advisory fees are extremely competitive
Assets under management Investment Management Financial Plan with 1 year
(annual fee) Investment Management
From $0 - $1,000,000 0.75% 1%
From $1,000,000 - $2,000,000 0.65% 0.80%
From $2,000,000 - $3,000,000 0.50% 0.60%
From $3,000,000 - $4,000,000 0.40% 0.50%
From$4,000,000 and above 0.30% 0.40%
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12. Contact and disclosure information:
Jim King, CFP®
jim@jpkingadvisors.com
Scott Horton, CFP®
scott@jpkingadvisors.com
Justin Dodson
justin@jpkingadvisors.com
925-935-1555
www.jpkingadvisors.com
Past performance is not a guarantee of future results
Some investments may result in loss of principal
Securities offered through Investment Architects, Inc. – Member FINRA/SIPC
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