Robust Investment Options
Investments should work together to help you accomplish your financial goals. We’re dedicated to providing you a wide range of investment products and services to help you meet them.
Investment Products
- You have many options for investing.
- Investments should work together to help you accomplish your financial goals.
Types of investments
Part of the investment planning process is making investment choices that fit your investment strategy. Those investments should work together to help you accomplish your financial goals. We’re dedicated to providing you a wide range of investment products and services to help you meet them.As an investor, you have many options. Common types of investments include:
- Stocks - An investment giving you partial ownership in a company based on the number of shares you purchase. Stocks tend to fluctuate more in the short term, but may perform well over time.
- Bonds - An investment that functions as a loan to a government or institution in return for regular interest payments. Bonds can provide more stability than stocks, even though bonds have historically provided lower returns than stocks.
- Mutual funds - A fund allowing you to pool your money with others in a professionally managed portfolio. Mutual funds offer diversification through a mix of investments, such as stocks or bonds.1
- Exchange-traded funds (ETFs) - A basket of securities traded throughout the day — just like individual stocks — on a national stock exchange. Like mutual funds, you purchase shares of an overall fund rather than individual investments.1
- Annuities - A contract between you and an insurance company requiring the insurer to make payments to you, either immediately or in the future. You make contributions to the annuity for a guaranteed income stream.2
- Brokered certificates of deposit (CDs) - Brokered CDs are issued by banks, purchased in bulk by securities firms and sold to clients. Investors do not receive physical certificates for their brokered CDs, but instead receive a periodic account statement detailing their CD holdings.3 Brokered CDs’ market value may fluctuate over time.
Contact a Financial Advisor to learn more about the types of investments to consider for your portfolio.
Next steps
- Understand the variety of investments available.
- Talk with your Financial Advisor about investment choices.
1Investment returns may fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed, or sold, may be worth more or less than their original cost.
2Variable annuities are long-term investments appropriate for retirement funding and are subject to market fluctuations and investment risk. Guarantees are based on the claims-paying ability of the issuing insurance company. Guarantees apply to minimum income from an annuity; they do not guarantee an investment return or the safety of the underlying funds.
3Generally, CDs may not be withdrawn prior to maturity. CDs are FDIC insured up to $250,000 per depositor per insured depository institution for each account ownership category. CDs may be issued by out of state institutions.
Alternative Investment Opportunities
Mutual funds, bonds and individual stocks have their places in most portfolios. But if you are open to other avenues for growth potential, alternative investments such as hedge funds and private debt might provide these benefits for your investment plan:
If this interests you, we can create a plan with alternative investment allocations as part of your overall investment strategy to unlock potentially significant opportunities.
From 1990 through the end of 2022, hedge funds have helped investors navigate difficult markets by experiencing significantly fewer negative months than equities.
Equities have experienced a much bumpier ride than hedge funds:
Source: MPI Stylus. Numbers indicate months with returns of less than -3%. Data based on historical performance from January 1, 1990, through December 31, 2022. Hedge funds are represented by the HFRI Fund Weighted Composite Index. Developed market equities are represented by the MSCI World Index.For illustrative purposes only. Index returns do not represent fund performance or the results of actual trading. Index returns reflect general market results; assume the reinvestment of dividends and other distributions; and do not reflect deduction of fees, expenses, or taxes applicable to an actual investment. Unlike most asset class indexes, HFR Index returns reflect deduction for fees. Because the HFR Indexes are calculated based on information that is voluntarily provided, actual returns may be lower than those reported. An index is unmanaged and not available for direct investment. Past performance is no guarantee of future results.
Alternative investments, such as hedge funds, funds of hedge funds, managed futures, private capital, real assets and real estate funds, are not appropriate for all investors. They are speculative, highly illiquid, and are designed for long-term investment, and not as trading vehicle. These funds carry specific investor qualifications which can include high income and net-worth requirements as well as relatively high investment minimums. The high expenses associated with alternative investments must be offset by trading profits and other income which may not be realized. Unlike mutual funds, alternative investments are not subject to some of the regulations designed to protect investors and are not required to provide the same level of disclosure as would be received from a mutual fund. They trade in diverse complex strategies that are affected in different ways and at different times by changing market conditions. Strategies may, at times, be out of market favor for considerable periods with adverse consequences for the fund and the investor. An investment in these funds involve the risks inherent in an investment in securities and can include losses associated with speculative investment practices, including hedging and leveraging through derivatives, such as futures, options, swaps, short selling, investments in non-U.S. securities, “junk” bonds and illiquid investments. The use of leverage in a portfolio varies by strategy. Leverage can significantly increase return potential but create greater risk of loss. At times, a fund may be unable to sell certain of its illiquid investments without a substantial drop in price, if at all. Other risks can include those associated with potential lack of diversification, restrictions on transferring interests, no available secondary market, complex tax structures, delays in tax reporting, valuation of securities and pricing. An investment in a fund of funds carries additional risks including asset-based fees and expenses at the fund level and indirect fees, expenses and asset-based compensation of investment funds in which these funds invest. An investor should review the private placement memorandum, subscription agreement and other related offering materials for complete information regarding terms, including all applicable fees, as well as the specific risks associated with a fund before investing.
- Historically lower market correlation compared to traditional investments
- Less-extreme market cycle peaks and troughs
- Access to more investment opportunities
If this interests you, we can create a plan with alternative investment allocations as part of your overall investment strategy to unlock potentially significant opportunities.
Alternative Investments: Upside That Can Limit Downside Exposure
From 1990 through the end of 2022, hedge funds have helped investors navigate difficult markets by experiencing significantly fewer negative months than equities.
Equities have experienced a much bumpier ride than hedge funds:
Source: MPI Stylus. Numbers indicate months with returns of less than -3%. Data based on historical performance from January 1, 1990, through December 31, 2022. Hedge funds are represented by the HFRI Fund Weighted Composite Index. Developed market equities are represented by the MSCI World Index.For illustrative purposes only. Index returns do not represent fund performance or the results of actual trading. Index returns reflect general market results; assume the reinvestment of dividends and other distributions; and do not reflect deduction of fees, expenses, or taxes applicable to an actual investment. Unlike most asset class indexes, HFR Index returns reflect deduction for fees. Because the HFR Indexes are calculated based on information that is voluntarily provided, actual returns may be lower than those reported. An index is unmanaged and not available for direct investment. Past performance is no guarantee of future results.
Alternative investments, such as hedge funds, funds of hedge funds, managed futures, private capital, real assets and real estate funds, are not appropriate for all investors. They are speculative, highly illiquid, and are designed for long-term investment, and not as trading vehicle. These funds carry specific investor qualifications which can include high income and net-worth requirements as well as relatively high investment minimums. The high expenses associated with alternative investments must be offset by trading profits and other income which may not be realized. Unlike mutual funds, alternative investments are not subject to some of the regulations designed to protect investors and are not required to provide the same level of disclosure as would be received from a mutual fund. They trade in diverse complex strategies that are affected in different ways and at different times by changing market conditions. Strategies may, at times, be out of market favor for considerable periods with adverse consequences for the fund and the investor. An investment in these funds involve the risks inherent in an investment in securities and can include losses associated with speculative investment practices, including hedging and leveraging through derivatives, such as futures, options, swaps, short selling, investments in non-U.S. securities, “junk” bonds and illiquid investments. The use of leverage in a portfolio varies by strategy. Leverage can significantly increase return potential but create greater risk of loss. At times, a fund may be unable to sell certain of its illiquid investments without a substantial drop in price, if at all. Other risks can include those associated with potential lack of diversification, restrictions on transferring interests, no available secondary market, complex tax structures, delays in tax reporting, valuation of securities and pricing. An investment in a fund of funds carries additional risks including asset-based fees and expenses at the fund level and indirect fees, expenses and asset-based compensation of investment funds in which these funds invest. An investor should review the private placement memorandum, subscription agreement and other related offering materials for complete information regarding terms, including all applicable fees, as well as the specific risks associated with a fund before investing.