Sentences with phrase «more higher risk assets»

Not exact matches

Investors with taxable account balances of $ 100,000 or more can expect up to 20 % of those balances to be invested in the fund, which offers greater exposure to asset classes with higher risk - adjusted returns.

Because small businesses are considered higher risk than their larger cousins, the SBA loan guarantee helps banks offer more flexible loan terms, meaning borrowers can be approved even if they have fewer assets than what would be required with a traditional term loan at the bank.

Offering periodic redemptions rather than daily redemptions gives the fund the opportunity to invest in assets that may be considered more illiquid in nature and higher risk, and therefore more suitable to long - term investors.

Moreover, a sustained move toward higher inflation is a risk to most investors and investment strategies, given that rising inflation has historically been a drag on equity and bond returns, making diversification beyond mainstream asset classes more critical.

They automate the loan underwriting, data management and risk assessment processes and provide a platform where accredited and institutional investors seeking high - yield, short - term, asset - collateralized investments can be matched with borrowers seeking more timely and consistent sources of funding for rehabbing properties across America.

We see the overall environment as positive for risk assets, but expect more muted returns and higher volatility than in 2017.

Stocks are probably the most popular asset; they are more volatile and have higher risk, but they're easy to understand and have the highest potential for return.

Over time, MFS has been a leading innovator in the asset management industry, including creating one of the first in - house research departments in the mutual fund industry in 1932, launching the first high - yield municipal bond fund and the first global balanced fund, and more recently creating «outcome - oriented» products, such as its line of target - risk, target - date, and other asset allocation strategies.

Then there are different rules that guide when more assets can be moved to higher risk alternatives.

So having a long time horizon allows you to allocate more capital to higher - risk, higher - return asset classes without worrying about short - term price fluctuations.

I expect this combination to result in moderately higher interest rates and to support risk assets (such as equities, commodities, high - yield bonds, real estate, and currencies), and, therefore, I suggest being more bold than cautious in the coming year.

Carry trades have to be approached carefully and correlate with risk assets such as stocks and high - yield bonds more broadly.

Bonds are also a relatively safe investment, so a low - risk allocation should have more assets in the bond market and less in the higher risk, higher return stock market.

Nevertheless, I'll try and describe the phenomenon of significantly underperforming a portfolio with more higher - risk assets.

It's important to remember that all higher - yielding assets come with higher risks, but some of these risks appear more worth taking now.

If persistent zero interest rates and quantitative easing that were intended to lead investors to take more risk in pursuit of higher yielding assets led to dampened volatility, we should expect greater financial market volatility in 2015 as the Fed pulls back from its zero rate policy.

The idea is to be more aggressive (invest more money) in lower risk undervalued assets, and be more conservative (invest less money) in higher risk overvalued assets.

Banks take more of a risk by giving out such loans with no asset or property to recover in - case a borrower defaults, which is the main reason why their interests rates a significantly higher.

This overall environment is positive for risk assets, in our view, but we expect more muted returns and higher volatility than in 2017.

As of right now, after the special dividend, there is a high risk that the remaining assets are used to chase after aquisitions instead of making more distributions to shareholders.

The new Target Date recommendation takes more risk by investing in the more volatile small - cap - value and emerging markets asset classes early on, but history suggests that leads to significantly higher returns over a 20 to 40 year time frame which is what a young investor has ahead of them.

Assets that carry a higher risk should deliver a higher reward but are also likely to have more volatile returns over the short - term.

With all of the uncertainty in the stock market lately due to high levels of volatility in both February and August, people are going risk - off (meaning they are shedding risky assets in exchange for more conservative plays) and many people are moving into gold as a safe haven.

But an even more important part of that strategy is deciding how much you can reasonably withdraw from savings in 401 (k) s, IRAs and other retirement accounts each year without running too high a risk of depleting your assets too soon — or ending up with a large pile of assets late in life and realizing that you unnecessarily stinted and might have enjoyed life more earlier in retirement.

More literate households hold riskier positions when expected returns are higher, they more actively rebalance their portfolios and do so in a way that holds their risk exposure relatively constant over time, and they are more likely to buy assets that provide higher returns than the assets that they sMore literate households hold riskier positions when expected returns are higher, they more actively rebalance their portfolios and do so in a way that holds their risk exposure relatively constant over time, and they are more likely to buy assets that provide higher returns than the assets that they smore actively rebalance their portfolios and do so in a way that holds their risk exposure relatively constant over time, and they are more likely to buy assets that provide higher returns than the assets that they smore likely to buy assets that provide higher returns than the assets that they sell.

The position amounts to less than 1 % of assets, and most of the day - to - day fluctuation in the Fund tends to be attributable to differences in the performance of the stocks held by the Fund and the indices we use to hedge, but we expect the higher - strike put options to fortify our defense against the risk of indiscriminate selling should the market encounter more than a moderate amount of weakness.

All assets prices are at risk when rates rise and the cost of borrowing is higher and fixed income investments like bonds and GICs are more competitive.

And, at times when stock risk is high, it makes more sense to invest in asset classes that offer guaranteed real returns (TIPS and IBonds) because the money invested in these asset classes can earn far higher returns in stocks than they could in bonds once stocks are again well - priced.

The fund's portfolio may underperform the general equity markets, or other asset classes, with the potential for greater individual security risk, asset class risk, and higher industry concentration risk than more broadly diversified portfolios.

We know that assets tend to become more risky as they increase in price and less risky after price declines, yet the majority of investors react to asset price changes without understanding that chasing performance often means chasing higher risk.

Second, when a hedge fund charges excessive management fees, which are based on size of assets under management, rather than performance fees which are based on how much money they make for you, a hedge fund manager tends to focus more on growing AUM rather than generating the highest possible risk adjusted returns.

Overview: William Bernstein (author of The Intelligent Asset Allocator) developed this model portfolio for people looking for a little more risk with potential higher returns than your average allocation.

Our research shows that many asset classes become more / less risky as the business cycle unfolds, but a static asset allocation approach leaves investors overweight high risk assets at the riskiest point in the cycle.

But the potential risk is that if more low - performing assets than high - performing assets have been chosen, the portfolio would have a worse return.

But if you follow the three steps I've outlined, you should have a decent shot at getting the retirement income you need without too high a risk of running through your assets too soon or ending up with more savings than you want in your dotage.

Higher expected returns in your stock portfolio can then allow you to take a more conservative overall asset allocation, which can provide the same expected returns, but with slightly lower risk.

One measure that combines risk and return is the Sharpe ratio, which describes how much excess return you receive for the extra volatility you endure by holding a riskier asset — the higher the number, the more return you are getting for the risk.

Roger Gibson's Asset Allocation provides step - by - step strategies for implementing asset allocation in a high return / low risk portfolio, educating financial planning clients on the solid logic behind asset allocation, and Asset Allocation provides step - by - step strategies for implementing asset allocation in a high return / low risk portfolio, educating financial planning clients on the solid logic behind asset allocation, and asset allocation in a high return / low risk portfolio, educating financial planning clients on the solid logic behind asset allocation, and asset allocation, and more.

Investors with taxable account balances of $ 100,000 or more can expect up to 20 % of those balances to be invested in the fund, which offers greater exposure to asset classes with higher risk - adjusted returns.

Because small businesses are considered higher risk than their larger cousins, the SBA loan guarantee helps banks offer more flexible loan terms, meaning borrowers can be approved even if they have fewer assets than what would be required with a traditional term loan at the bank.

Drexel and other investment banks realized that by bundling high - yield bonds and loans and slicing them into different layers of credit risk, they could make more money than they could from holding or selling the individual assets.

«Given the amount of money you're spending on high - cost, high carbon projects... given your demand restraints due to carbon asset risks, we think a more prudent use of capital is to return more money to shareholders through dividends and share buybacks.»

According to Carbon Tracker, the roughly $ 400 billion committed to Alberta oil sands projects between now and 2025 represent more than a third of high - risk projects expected to become stranded assets in a 2 - degree world.

«Investments with more carbon translate to higher risk, not just from potential carbon fees or pricing, but also from shifts in technology that can leave high carbon assets stranded,» said Erik Solheim, Head of UN Environment.

On the subject of token sales - or offers of custom cryptocurrencies used to bootstrap new blockchain networks - the company, which reported more than $ 54 billion in assets under management earlier this month, said that today's comparatively high - risk environment could become more normalized within the next 20 years.

While derivatives built on underlying assets such as cash, gold and bonds are constructed to minimize loss in more high - risk endeavors, what the report calls «a generic paper contract» might not specify data sources or algorithms implemented by the counterparties.

Still, traders counter, cryptocurrency just doesn't function like more established markets, meaning that in the high - risk world of experimental assets, more risk is still just risk.

This is because the SEC sees high - net - worth individuals as more capable of absorbing the risk that comes with these asset classes.

While some asset classes like traditional commodities and fiat currencies are more stable, it's the high risk / high return nature of cryptocurrency investing that has fuelled the explosion in its popularity in recent months.

«You will be compensated with high potential returns for taking those risks now,» he said, pointing to three - to - 10 years ahead when cryptocurrencies will be a «more established asset class,» at which time volatility will be more akin to what's normal in the equity and bond markets, with higher upside potential.