Five asset classes to ensure proper asset allocation

Five asset classes for successful investing

An asset class is…

A group of investments whose risk factors and expected returns are similar

Make sure you achieve proper asset allocation by balancing out that latest hot stock with a tried and true share

There are five major classes…

Fixed Income — The Old Faithful

Fixed income assets are by far the least volatile and you can expect an annual return or interest rate

In the event of a bankruptcy, bondholders are paid out in full before the company owners receive a dime

U.S. Stocks — The American Dream

The U.S. stock market is universally recognized as the largest and most liquid stock market in the world

Today, the country's stock markets are now significantly more correlated with other markets around the world

REITs — Acquire land

Despite recent dramatic corrections, Real Estate Investment Trusts (REITs) have actually performed better than the other classes in the past four decades

REITs are companies that own and manage real estate, and consistently pay a strong dividend

International Stocks — Go Global

International stocks include a diverse range: Europe, Asia, South America, the emerging markets, and Canada

Globalization has considerably blurred the line between U.S. and International stocks

Commodities — Materialize

Commodities cover energy, precious metals, base metals, and agriculture

They have the highest risk and poorest investment returns

But, if used well, they can play an important role in improving the risk/return profile of a diversified portfolio

Thank you!

Matthew Lekushoff, CIMAFinancial Advisor at Raymond James Ltd.Phone: 416-777-6368Email: matthew.lekushoff@raymondjames.caWeb: www.matthewlekushoff.ca

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This has been prepared by Matthew Lekushoff and expresses the opinions of the authors and not necessarily those of Raymond James Ltd. (RJL). Statistics, factual data and other information are from sources RJL believes

to be reliable but their accuracy cannot be guaranteed. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. This is intended for distribution only

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