Sentences with phrase «part of an asset diversification»

Precious metals have offered a safe harbor for investors seeking refuge from market volatility in the past, and they can do so again as part of an asset diversification strategy.

Not exact matches

Before the end of April, when the market started its gut - wrenching descent, «the combination of return generation and risk diversification was part of a broader virtuous circle for fixed income, which also included significant inflows to the asset class and direct support from central banks,» El - Erian writes at the start of his viewpoint, noting that in addition to delivering solid returns with lower volatility relative to stocks, the inclusion of fixed income in diversified asset allocations also helped to reduce overall portfolio risk.

Much like mutual funds, ETFs work well for the retail or part time investor because they have some diversification already built in, given that they represent a collection of stocks (or other assets).

Managed Futures can be a valuable part of an overall asset allocation plan; their 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.

An investor in ITCs usually has less need for diversification than is the case for GCs, in part because the portfolios of ITCs tend to already be quite diversified as is the case for Brookfield Asset Management, Loews Corp., and a majority of the portfolio securities held by Third Avenue Real Estate Value Fund.

Part 1 of this article looked at the ways in which superannuation funds and other institutional investors build «multi-manager» equity portfolio structures in an attempt to spread the benefits of diversification within, and not just across, asset classes.

Third Misconception: Expected Return Is All You Need Even assets with disappointing expected returns can be a significant part of an asset allocation plan, as long as they offer diversification benefits.

All investors that have ever succeeded at meeting or exceeding his or her financial goals have used asset class diversification as part of their strategy.