1. The document provides information to help investors diversify their retirement plan investments and manage risk. It discusses the basics of different asset classes like stocks, bonds, and capital preservation instruments.
2. Sample investor profiles are provided to help investors determine an appropriate asset allocation based on their time horizon and risk tolerance. A variety of ready-mixed and individual fund options are available through the plan.
3. Rebalancing is discussed as a strategy to manage risk over time by adjusting allocations back to their original targets when market fluctuations cause them to diverge.
Developing an Asset Allocation Strategy and the Military Familymilfamln
This webinar discusses asset allocation, diversification and strategies to implement an individualized investment plan https://learn.extension.org/events/1715
The article discusses an alternative approach to experiencing the costs of index reconstitution, called “Asset Classes,” which allow the fund manager broader leeway as to when to buy or sell, along with a broader range of holdings. This discussion begins in the section called “Decision Two: Indexing or Asset Class Investing?”
The Asset Class approach, also referred to by others as "Factor Investing," is based on what has become to be called “Evidence Based Investing” due to roots discussed in the linked "Factor Investing" article, that come from academic (peer reviewed and repeatable results) foundation that continues to this day.
My blog post discussing this article is scheduled to post 8 Feb 2017 http://wp.me/p2Oizj-Hh
Dato’ Yau is a chartered accountant and has more than 30 years experience in auditing, corporate finance and general management. Prior to joining Tropicana as the Group Chief Executive Officer, he was with Hong Leong Industries Bhd where he served as group managing director since September 2011 and prior to that, he was Sunway Holdings Bhd managing director since April 2001. He has also served well in various Sunway Group Berhad.
Five asset classes to ensure proper asset allocationMatthew Lekushoff
In this presentation, Matthew Lekushoff covers the five major asset classes investors should consider when putting together their portfolios. Ensuring investments in each asset class will guarantee proper asset allocation.
Matthew is a financial advisor with Raymond James Ltd.'s head office in Toronto.
Developing an Asset Allocation Strategy and the Military Familymilfamln
This webinar discusses asset allocation, diversification and strategies to implement an individualized investment plan https://learn.extension.org/events/1715
The article discusses an alternative approach to experiencing the costs of index reconstitution, called “Asset Classes,” which allow the fund manager broader leeway as to when to buy or sell, along with a broader range of holdings. This discussion begins in the section called “Decision Two: Indexing or Asset Class Investing?”
The Asset Class approach, also referred to by others as "Factor Investing," is based on what has become to be called “Evidence Based Investing” due to roots discussed in the linked "Factor Investing" article, that come from academic (peer reviewed and repeatable results) foundation that continues to this day.
My blog post discussing this article is scheduled to post 8 Feb 2017 http://wp.me/p2Oizj-Hh
Dato’ Yau is a chartered accountant and has more than 30 years experience in auditing, corporate finance and general management. Prior to joining Tropicana as the Group Chief Executive Officer, he was with Hong Leong Industries Bhd where he served as group managing director since September 2011 and prior to that, he was Sunway Holdings Bhd managing director since April 2001. He has also served well in various Sunway Group Berhad.
Five asset classes to ensure proper asset allocationMatthew Lekushoff
In this presentation, Matthew Lekushoff covers the five major asset classes investors should consider when putting together their portfolios. Ensuring investments in each asset class will guarantee proper asset allocation.
Matthew is a financial advisor with Raymond James Ltd.'s head office in Toronto.
There is a cost to indexing that most investors are unaware of. It is called “reconstitution.”
A blog post is scheduled for 8 Feb 2017 discussing this article.
http://wp.me/p2Oizj-Hh
http://profitableinvestingtips.com/stock-investing/designing-an-investment-portfolio
Designing an Investment Portfolio
Designing an investment portfolio may be the most important thing you do in investing. There are tips and insights to make you money but over the long haul profitable investing hinges on hedging investment risk as well as picking winners. Here are a few insights into designing an investment portfolio.
Matching Portfolio Risk to the Investor
We have often noted that as an investor ages he or she will commonly want to move to dividend stocks instead of riskier investment. Business Insider gives an example of analyzing the portfolio of a retiree for risk.
What’s one trademark of a poorly designed investment portfolio? The answer is a portfolio whose risk character is incompatible with the risk character of its owner.
Frequently, these risk incompatibilities are camouflaged by a hot stock market. But when the market reverses and begins to fall like it has lately, the problems of investment portfolios with unsuitable risk levels becomes apparent.
Factors to consider are cost, diversification, risk, tax efficiency and long term performance. You may be invested in a fund that pays good returns but those returns are largely eaten up by fees and commissions. If you were invested heavily in big oil you lost heavily when the price of oil fell. Diversification across various market sectors is good. Tax free or tax advantaged investments are good if you are still in your earning years but less important as you retire. Risk and long term performance are closely related. As the author says when the market is hot all stocks look good but when it falls only strong companies hold their value. If you would like to sleep well at night load up on long term strong performers.
Unexpected Outcomes
Sometimes strategies for designing an investment portfolio do not work out as expected. The New York Times writes about investment strategies mean to lessen volatility and how they may not have worked as expected.
the choice of financial professionals
Print
Digital
Websites
Creative
Marketing
Personalised Client Marketing Factsheets
You may also be interested in
Financial adviser newsletters
Financial adviser client magazines
Personalised marketing factsheets
Financial adviser Corporate brochures
Personalised 2014/15 Tax Data card
Bespoke publishing services
Financial adviser client marketing factsheets
Goldmine Media's professional financial adviser factsheets will enable your business to extend client communication, raise brand awareness, improve marketing efficiency, enhance client retention and increase sales.
Generate further repeat business opportunities
This service has been designed to generate further repeat business opportunities and referrals from your clients. Besides educating and informing clients, you're also achieving greater brand and name recognition, which is a very beneficial way to build lasting relationships.
Nurture relationships as part of your ongoing service proposition
In a post-RDR environment, there has never been a more important time to communicate with your clients on a regular basis, and each factsheet will ensure that you're able to nurture relationships as part of your ongoing client service proposition.
Each factsheet used as part of a direct mail campaign provides an unrivalled way of maintaining client contact and providing information that your clients know to be impartial, relevant and timely.
The Toroso Target 8 Series consists of five distinct portfolios comprised of ETFs and other exchange traded products (ETPs), that are structured to reflect a client’s economic point of view while considering the client’s risk tolerance and time horizon. Risk is mitigated using 4 distinct asset classes such that not one economic scenario will deplete a client’s portfolio under stressful market events.
the choice of financial professionals
Print
Digital
Websites
Creative
Marketing
Personalised Client Marketing Factsheets
You may also be interested in
Financial adviser newsletters
Financial adviser client magazines
Personalised marketing factsheets
Financial adviser Corporate brochures
Personalised 2014/15 Tax Data card
Bespoke publishing services
Financial adviser client marketing factsheets
Goldmine Media's professional financial adviser factsheets will enable your business to extend client communication, raise brand awareness, improve marketing efficiency, enhance client retention and increase sales.
Generate further repeat business opportunities
This service has been designed to generate further repeat business opportunities and referrals from your clients. Besides educating and informing clients, you're also achieving greater brand and name recognition, which is a very beneficial way to build lasting relationships.
Nurture relationships as part of your ongoing service proposition
In a post-RDR environment, there has never been a more important time to communicate with your clients on a regular basis, and each factsheet will ensure that you're able to nurture relationships as part of your ongoing client service proposition.
Each factsheet used as part of a direct mail campaign provides an unrivalled way of maintaining client contact and providing information that your clients know to be impartial, relevant and timely.
The presentation tries to give an overview of why an individual (retail investor) should opt for investing in the financial markets through various vehicles for getting returns that can beat inflation and other asset classes. Reach out for getting more clarity or assistance regarding the same.
http://www.profitableinvestingtips.com/stock-investing/diversify-your-investment-portfolio
Diversify Your Investment Portfolio
Diversification is a means of reducing risk and increasing opportunity in investing. The chances of having a stock in your portfolio rise significantly in price goes up when you have five well-chosen stocks instead of one. The chances of losing all of your investment capital also go down when you diversify your investment portfolio among several stocks in several market sectors. Likewise, if a part of your investments is in property, a part is in stocks, a part is in bonds, and a part is in offshore investments you can reduce risk and increase the opportunity for profits. When suggesting offshore investment opportunities we wrote about Three Good Offshore Investment Ideas, for example.
Diversify Your Investment Portfolio to Gain Variety and Opportunity
When you diversify your investment portfolio you invest in a variety of assets. Because the value of each investment does not go up or down in perfect harmony, diversification averages out risk, as well as gain. To the extent that one is looking to a big gainer, having more stocks, real estate, or other assets may serve to increase the odds of success. In their book A Random Walk Down Wall Street the authors note that the best return in stocks is often a basket of about forty small cap stocks. These stocks are priced low because of the risk inherent in small companies. However, if you diversify your investment portfolio with a large number of these stocks, you increase the chances of finding a huge winner which will negate the effects on the portfolio of a handful of losers.
Structured Investing In An Unstructured WorldRobert Davis
Structured Investing is based on 80+ years of financial market data, Nobel Prize-winning economic research, and in-depth studies of investor psychology and behavior.
There is a cost to indexing that most investors are unaware of. It is called “reconstitution.”
A blog post is scheduled for 8 Feb 2017 discussing this article.
http://wp.me/p2Oizj-Hh
http://profitableinvestingtips.com/stock-investing/designing-an-investment-portfolio
Designing an Investment Portfolio
Designing an investment portfolio may be the most important thing you do in investing. There are tips and insights to make you money but over the long haul profitable investing hinges on hedging investment risk as well as picking winners. Here are a few insights into designing an investment portfolio.
Matching Portfolio Risk to the Investor
We have often noted that as an investor ages he or she will commonly want to move to dividend stocks instead of riskier investment. Business Insider gives an example of analyzing the portfolio of a retiree for risk.
What’s one trademark of a poorly designed investment portfolio? The answer is a portfolio whose risk character is incompatible with the risk character of its owner.
Frequently, these risk incompatibilities are camouflaged by a hot stock market. But when the market reverses and begins to fall like it has lately, the problems of investment portfolios with unsuitable risk levels becomes apparent.
Factors to consider are cost, diversification, risk, tax efficiency and long term performance. You may be invested in a fund that pays good returns but those returns are largely eaten up by fees and commissions. If you were invested heavily in big oil you lost heavily when the price of oil fell. Diversification across various market sectors is good. Tax free or tax advantaged investments are good if you are still in your earning years but less important as you retire. Risk and long term performance are closely related. As the author says when the market is hot all stocks look good but when it falls only strong companies hold their value. If you would like to sleep well at night load up on long term strong performers.
Unexpected Outcomes
Sometimes strategies for designing an investment portfolio do not work out as expected. The New York Times writes about investment strategies mean to lessen volatility and how they may not have worked as expected.
the choice of financial professionals
Print
Digital
Websites
Creative
Marketing
Personalised Client Marketing Factsheets
You may also be interested in
Financial adviser newsletters
Financial adviser client magazines
Personalised marketing factsheets
Financial adviser Corporate brochures
Personalised 2014/15 Tax Data card
Bespoke publishing services
Financial adviser client marketing factsheets
Goldmine Media's professional financial adviser factsheets will enable your business to extend client communication, raise brand awareness, improve marketing efficiency, enhance client retention and increase sales.
Generate further repeat business opportunities
This service has been designed to generate further repeat business opportunities and referrals from your clients. Besides educating and informing clients, you're also achieving greater brand and name recognition, which is a very beneficial way to build lasting relationships.
Nurture relationships as part of your ongoing service proposition
In a post-RDR environment, there has never been a more important time to communicate with your clients on a regular basis, and each factsheet will ensure that you're able to nurture relationships as part of your ongoing client service proposition.
Each factsheet used as part of a direct mail campaign provides an unrivalled way of maintaining client contact and providing information that your clients know to be impartial, relevant and timely.
The Toroso Target 8 Series consists of five distinct portfolios comprised of ETFs and other exchange traded products (ETPs), that are structured to reflect a client’s economic point of view while considering the client’s risk tolerance and time horizon. Risk is mitigated using 4 distinct asset classes such that not one economic scenario will deplete a client’s portfolio under stressful market events.
the choice of financial professionals
Print
Digital
Websites
Creative
Marketing
Personalised Client Marketing Factsheets
You may also be interested in
Financial adviser newsletters
Financial adviser client magazines
Personalised marketing factsheets
Financial adviser Corporate brochures
Personalised 2014/15 Tax Data card
Bespoke publishing services
Financial adviser client marketing factsheets
Goldmine Media's professional financial adviser factsheets will enable your business to extend client communication, raise brand awareness, improve marketing efficiency, enhance client retention and increase sales.
Generate further repeat business opportunities
This service has been designed to generate further repeat business opportunities and referrals from your clients. Besides educating and informing clients, you're also achieving greater brand and name recognition, which is a very beneficial way to build lasting relationships.
Nurture relationships as part of your ongoing service proposition
In a post-RDR environment, there has never been a more important time to communicate with your clients on a regular basis, and each factsheet will ensure that you're able to nurture relationships as part of your ongoing client service proposition.
Each factsheet used as part of a direct mail campaign provides an unrivalled way of maintaining client contact and providing information that your clients know to be impartial, relevant and timely.
The presentation tries to give an overview of why an individual (retail investor) should opt for investing in the financial markets through various vehicles for getting returns that can beat inflation and other asset classes. Reach out for getting more clarity or assistance regarding the same.
http://www.profitableinvestingtips.com/stock-investing/diversify-your-investment-portfolio
Diversify Your Investment Portfolio
Diversification is a means of reducing risk and increasing opportunity in investing. The chances of having a stock in your portfolio rise significantly in price goes up when you have five well-chosen stocks instead of one. The chances of losing all of your investment capital also go down when you diversify your investment portfolio among several stocks in several market sectors. Likewise, if a part of your investments is in property, a part is in stocks, a part is in bonds, and a part is in offshore investments you can reduce risk and increase the opportunity for profits. When suggesting offshore investment opportunities we wrote about Three Good Offshore Investment Ideas, for example.
Diversify Your Investment Portfolio to Gain Variety and Opportunity
When you diversify your investment portfolio you invest in a variety of assets. Because the value of each investment does not go up or down in perfect harmony, diversification averages out risk, as well as gain. To the extent that one is looking to a big gainer, having more stocks, real estate, or other assets may serve to increase the odds of success. In their book A Random Walk Down Wall Street the authors note that the best return in stocks is often a basket of about forty small cap stocks. These stocks are priced low because of the risk inherent in small companies. However, if you diversify your investment portfolio with a large number of these stocks, you increase the chances of finding a huge winner which will negate the effects on the portfolio of a handful of losers.
Structured Investing In An Unstructured WorldRobert Davis
Structured Investing is based on 80+ years of financial market data, Nobel Prize-winning economic research, and in-depth studies of investor psychology and behavior.
While U.S. stocks finished the quarter with positive results, a range of global assets lost ground as bond yields jumped and commodity prices fell. The portfolio’s emphasis on U.S. equities and an underweight to interest rate risk, while helpful, did not offset declines across a range of global investments. The fund continues to pursue a flexible balance of risk exposures.
A mutual fund is a pool of money managed by a professional Fund Manager. It is a trust that collects money from a number of investors who share a common investment objective and invests the same in equities, bonds, money market instruments .
A look at how we got into this mess of a financial meltdown, what to do in the midst of it, and how to capitalize going forward. This presentation illustrates the need of hiring a professional advisor to help you manage your emotions during times of uncertainty.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the what'sapp number.
+12349014282
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the what'sapp information for my personal pi vendor.
+12349014282
Understanding how timely GST payments influence a lender's decision to approve loans, this topic explores the correlation between GST compliance and creditworthiness. It highlights how consistent GST payments can enhance a business's financial credibility, potentially leading to higher chances of loan approval.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
This presentation poster infographic delves into the multifaceted impacts of globalization through the lens of Nike, a prominent global brand. It explores how globalization has reshaped Nike's supply chain, marketing strategies, and cultural influence worldwide, examining both the benefits and challenges associated with its global expansion.
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where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the what'sapp contact of my personal pi merchant to trade with
+12349014282
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
Scope Of Macroeconomics introduction and basic theories
256837 Building Services Sample Show
1.
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6. Stock market performance 1978–2008 Past performance is no guarantee of future results. Hypothetical value of $1 invested at the end of 1978. Small stocks are represented by the Russell 2000 Index, large stocks are represented by the S&P 500 Index. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000 Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. S&P 500 Index includes 500 leading companies in leading industries of the U.S. economy. Although the S&P 500 focuses on the large cap segment of the market, with approximately 75% coverage of U.S. equities, it is also an ideal proxy for the total market. Assumes reinvestment of income, and no transaction costs or taxes. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. $21.70 $22.89 Small-cap stocks Large-cap stocks GROWTH OF $1.00 INVESTMENT
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16. Your investment options Ready-mixed investment options PUTNAM ASSET ALLOCATION: GROWTH PORTFOLIO PUTNAM ASSET ALLOCATION: BALANCED PORTFOLIO PUTNAM ASSET ALLOCATION: CONSERVATIVE PORTFOLIO See following slide for additional information on how funds are ranked. Higher risk/higher potential reward Lower risk/lower potential reward
17.
18. Consider these sample investor profiles TYPICAL ALLOCATION TIME HORIZON RISK TOLERANCE GOAL The sample profiles take into consideration the time remaining until anticipated retirement at age 65, historical inflation rates, and risk and potential return relationships of the asset classes shown. You should not consider this investment advice. No other assumptions have been made. In applying the sample profiles to your individual situation, consider your assets, income, and investments (e.g., the equity in your home, other retirement plan and IRA assets, and your savings) in addition to your Plan account. You may wish to consult a financial advisor to review your financial situation. Call your Plan’s toll-free number if you have any questions. 30% 30% 5% 5% 30% 20% 20% 20% 10% 30% 15% 15% 35% 15% 20% 10% 50% 20% 10% 10% Growth Blend Value Income Capital preservation 5 years or less Low to moderate Income and inflation protection 5–10 years Moderate Conservative growth 10–20 years High to moderate Growth 20 years or more High Maximum growth
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21. The role of rebalancing * Compounded monthly. This hypothetical illustration does not reflect the actual performance of funds in your Plan, which will fluctuate. Rebalancing does not guarantee a profit or prevent a loss in declining markets. Initial allocation Year-end allocation YEAR-END ALLOCATION 12/31/2008 PERFORMANCE 1/1/2007–12/31/2008* INITIAL ALLOCATION 1/1/2008 $104 11.3% +4% $100 10% Capital preservation fund D $108 11.7% +8% $100 10% Income fund C $228 24.8% +14% $200 20% Value fund B $480 52.2% -20% $600 60% Growth fund A
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23. Mercer Securities A division of MMC Securities Corp., Member FINRA/SIPC Before investing, consider the funds’ or investment options’ investment objectives, risks, charges and expenses. Call 1-800-752-2697 for a prospectus and, if available, a summary prospectus, or an offering circular containing this and other information. Read it carefully. M256837 1/10
Editor's Notes
This workshop is designed to provide you with an overview of basic investment styles and asset classes and to help you understand the importance of building a diversified portfolio. Let’s get started. 215294 09/04
M256837_Building Services_Diversification_Show 12/30/11 First, we’ll take a look at the importance of diversification and review some of the basics of investing. Next, we’ll examine the investment options and features of your Plan.
M256837_Building Services_Diversification_Show 12/30/11 The idea behind diversification is pretty simple. Diversification is the concept of spreading risk by investing in different types of asset classes, sectors, and regions. In other words, diversification is the idea that you should not put all of your eggs in one basket. Remember, diversification doesn’t guarantee a profit or protect against a loss. It is possible to lose money in a diversified portfolio. 233289 6/06
M256837_Building Services_Diversification_Show 12/30/11 Many of the investment options in your Plan are funds that pool your money with that of many other people who have similar goals. Depending on the fund’s investment goals, professional money managers use the pool of money to buy investments in one or more of the three asset classes – stocks, bonds, and capital preservation instruments. Stocks are shares or part ownership of a company. Bonds are IOUs from a company or government. Capital preservation instruments are short-term investments like U.S. Treasury bills. You can get a sense for the differences between these asset classes by looking at how they have performed over time. Of course, past performance does not guarantee future results. 233289 6/06
M256837_Building Services_Diversification_Show 12/30/11 One way to classify stock is by capitalization range. There are small-cap, mid-cap, and large-cap stocks. Capitalization refers to the market value of a company and is calculated by multiplying the stock price by the number of outstanding shares. Small- and mid-cap stocks historically have been more volatile than large-cap stocks. 233289 6/06
This chart illustrates the performance of a hypothetical $1.00 investment made on 12/31/78 in small-cap stocks (represented by the Russell 2000 Index) and large-cap stocks (represented by the S&P 500 Index) as of 12/31/08. While both types of stocks have experienced long-term growth over the past 30 years, there have been periods of time when their performance has been very different. Of course, past performance is no guarantee of future results. The Russell 2000 Index is a subset of the Russell 3000 Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. S&P 500 Index includes 500 leading companies in leading industries of the U.S. economy. Although the S&P 500 focuses on the large cap segment of the market, with approximately 75% coverage of U.S. equities, it is also an ideal proxy for the total market.
M256837_Building Services_Diversification_Show 12/30/11 Whatever the size, stocks are categorized as either growth or value. Your investment “style” is defined by which of these stock types you favor. Growth stocks represent companies with rapidly expanding earnings growth. Growth stocks can be risky because investors may bail out if the growth rate slows, which in turn can drive the stock’s price down. Value stocks are “bargain” or out-of-favor stocks that are inexpensive relative to company earnings or assets. Value investors hope that, in time, the price of their stock will rise to reflect its true value; this expectation may or may not pay off. 233289 6/06
You can see from this chart that between growth and value categories of stocks, one type has outperformed the other at different times during the years. For example, value stocks have sometimes led the field, while at other times growth stocks have been the leader. There’s no telling what will happen in the future. Past performance does not guarantee future results. The Russell 3000 Growth Index measures the performance of the broad growth segment of the U.S. equity universe. It includes those Russell 3000 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 3000 Value Index measures the performance of the broad value segment of U.S. equity value universe. It includes those Russell 3000 companies with lower price-to-book ratios and lower forecasted growth values.
M256837_Building Services_Diversification_Show 12/30/11 Another way to categorize company stocks is geographically – as either domestic (based in the United States), or international (based outside the United States). 233289 6/06
Although investing abroad can seem a little frightening at first, consider that many of the products you use on a daily basis are from companies that call other countries their home. Globalization has helped to increase brand awareness with investors around the world. Investing internationally can help diversify your portfolio, as domestic and international markets do not always move up or down at the same times.
As you can see, domestic markets may outperform international markets at times, and at times the opposite may be true. The fact that these markets perform at different levels at different times is another key reason to make sure your investment portfolio is well diversified. Past performance is no guarantee of future results. The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. S&P 500 Index includes 500 leading companies in leading industries of the U.S. economy. Although the S&P 500 focuses on the large cap segment of the market, with approximately 75% coverage of U.S. equities, it is also an ideal proxy for the total market.
M256837_Building Services_Diversification_Show 12/30/11 Like stocks, there are a number of different types of bonds, including U.S. Government bonds, corporate bonds, and mortgage-backed securities. Corporate bonds may offer higher yields than government bonds in exchange for more risk (there is a greater risk of a corporation defaulting than the U.S. government). There are also several types of securities that fall into the capital preservation category, including guaranteed investment contracts (typically issued by banks or insurance companies), certificates of deposit, and money market instruments. Money market funds are not insured or guaranteed by the Federal Deposit Insurance Corp. (FDIC) or any other government agency. Although the fund seeks to maintain a constant share price of $1.00, it is still possible to lose money in this fund.
This chart illustrates the performance of a hypothetical $1.00 investment made on 12/31/78 in portfolios with various stock and bond allocations as of 12/31/08. Stocks are represented by the S&P 500 Index. Bonds are represented by the Barclay’s U.S. Aggregate Bond Index. S&P 500 Index includes 500 leading companies in leading industries of the U.S. economy. Although the S&P 500 focuses on the large-cap segment of the market, with approximately 75% coverage of U.S. equities, it is also an ideal proxy for the total market. Barclay’s U.S. Aggregate Bond Index covers the USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The 100% stock portfolio provided the largest increase in wealth over the past 30 years. The 100% bond portfolio provided only a fraction of the growth provided by the stock portfolio. As illustrated in this image, portfolios with a greater allocation to stocks produced greater returns and a higher ending wealth value than those of portfolios allocated more heavily to bonds. However, these higher returns are associated with much greater volatility (risk). When creating your portfolio, it is important to weigh how much risk of losing money you are willing to accept in return for the potential of making money over the long term. This example is for illustrative purposes only and does not reflect the returns of any investment in your Plan, which will vary. Past performance is no guarantee of future results.
M256837_Building Services_Diversification_Show 12/30/11 A fund is a professionally managed investment that allows a group of investors to pool their money together with a predetermined investment objective. Funds typically invest in a combination of stocks, bonds, and/or capital preservation instruments.
M256837_Building Services_Diversification_Show 12/30/11 To meet the needs of various investors, your Plan offers two ways to invest and diversify your retirement savings. You can choose a single professionally diversified “ready-mixed” portfolio, or you can mix your own portfolio. Why is diversification important? Because owning a mix of different investments – whether or not you choose them yourself – can help you reduce risk and increase your exposure to market opportunities. Of course, diversification does not guarantee a profit; you can still lose money in a diversified portfolio. 250019 2/08
M256837_Building Services_Diversification_Show 12/30/11 Here are your ready-mixed options.These portfolios provide a range of choices for different levels of investor risk tolerance. The growth portfolio is weighted more heavily toward aggressive, higher-risk investments with greater return potential, while the conservative portfolio is weighted more heavily toward lower-risk investments with less return potential. 250397 2/08
M256837_Building Services_Diversification_Show 12/30/11 Note to presenter: Be sure to include this slide with prediversified funds. 232534 6/06
M256837_Building Services_Diversification_Show 12/30/11 Your Plan offers a range of investment choices to help you build a diversified portfolio. These sample investor profiles can help you decide how to diversify your money among the Plan’s fund styles, based on your goals, risk tolerance, and time horizon. The sample profiles take into consideration the time remaining until anticipated retirement at age 65, historical inflation rates, and risk and potential return relationships of the asset classes shown. You should not consider this investment advice. No other assumptions have been made. In applying the sample profiles to your individual situation, consider your assets, income, and investments, e.g., the equity in your home, other retirement plan and IRA assets, and your savings, in addition to your Plan account. You may wish to consult a financial advisor to review your financial situation. Call your Plan’s toll-free number if you have any questions. 232534 6/06
M256837_Building Services_Diversification_Show 12/30/11 Here are the individual funds in the Plan you can choose from to create your own diversified portfolio. As you can see, you have a broad range of investments to choose from. The ones at the top are considered the most aggressive, meaning they offer higher potential reward in exchange for higher risk, while the ones at the bottom are more conservative and therefore offer less risk and lower potential return. How you invest will depend on your age, time horizon until retirement, and tolerance for investment risk. For example, as you near retirement, you may want to consider investing more conservatively, as you’ll have less time to recover from any downturns in the stock market. It is important to note that an investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. 215294 05/05
M256837_Building Services_Diversification_Show 12/30/11 [Note to presenter: This slide MUST be included when discussing mix-your-own investment options. It MUST directly follow the preceding slide.] 232534 6/06
Here’s an example. At the beginning of the year, an investor invests $1,000 among four funds, diversifying his portfolio based on his risk tolerance and investment goals. By year end, due to uneven price movements among investments, the portfolio’s allocation has shifted from its initial strategy. Without rebalancing, the investor could inadvertently take on more or less investment risk in a certain asset category than intended, and that difference may likely be reflected in the portfolio’s future returns. In this example, growth was the worst-performing asset class. Because the portfolio’s growth allocation went from an initial 60% to 52.2% due to poorer performance, the investor would need to rebalance to get back to his initial allocation. 233289 6/06
M256837_Building Services_Diversification_Show 12/30/11 You have access to your Plan account either by using the Plan’s personalized website, www.ibenefitcenter.com, or by using the Plan’s automated toll-free number. You also have access to Service Representatives any business day. 233289 6/06
M256837_Building Services_Diversification_Show 12/30/11 Before investing, consider the funds' or investment options' investment objectives, risks, charges, and expenses. Call 1-800-752-2697 for a prospectus and, if available, a summary prospectus, or an offering circular containing this and other information. Read it carefully. 232534 6/06