DIVERSIFY YOUR ASSET PORTFOLIO
Modern Portfolio Theory
Investors want the highest returns with the least risk
Diversification is essential to managing risk
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Higher returns are possible with better asset allocation
"More efficient investment portfolios can be created by diversifying among asset categories with low to negative correlations." 1990 Nobel Prize winning economist Dr. Harry M. Markowitz
(Father of Modern Portfolio Theory)
What are the Benefits?
Strategic investments can be a valuable part of an overall asset allocation plan; its purpose is to add portfolio diversification, potentially reduce overall portfolio volatility and potentially achieve higher overall portfolio performance over time when compared to traditional investment portfolios alone.
Possible ability to enhance return on investment
Performance is not necessarily dependent on economic conditions
Helps diversify existing portfolio
Opportunity for better risk management
Broad diversification within the investment
No daily management
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Liquidity
Asset Allocation with Strategic Investments*
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Source: "The Potential Role of Managed Commodity Financial Futures Accounts (and/or Funds) in Portfolios of Stocks and Bonds," Annual Conference of Financial Analysts Federation, May 1983. |
* Dr. John Lintner of Harvard University, wrote that "the combined portfolios of stocks (or stocks and bonds) after including judicious investments ... in leveraged managed futures accounts show substantially less risk at every possible level of expected return than portfolios of stocks (or stocks and bonds) alone."
