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Investment Services

Quality Service and Diversication

Our portfolios can span as many as six asset classes, including both traditional and non-traditional asset classes. The traditional asset classes include domestic equity, international equity, and fixed income. Non-traditional asset classes include private equity, absolute return and real assets.

We seek to reduce risk, provide positive returns over the long term and minimize the downside during turbulent market conditions.

Traditional Asset Classes

Domestic Equity

Domestic equities represent ownership of a piece of a U.S.- based corporation; however, stakeholders reside at the bottom of the capital structure, below all debt holders. In general, domestic equities are a large, liquid and rather efficient asset class that is heavily researched by third parties. Domestic equity strategies are generally categorized by their focus on both market capitalization (large, mid, small) and style (value, core, growth).

International Equity

International equity strategies can target either developed economies (Western Europe, Japan, Australia, Canada) or emerging economies (China, Latin America, Eastern Europe). Strategies targeting international developed markets typically provide similar expected returns as domestic equity investments; however, they provide portfolio diversification. Developed economies are comparable to the U.S. in terms of economic infrastructure and they have common drivers of economic performance; however, markets in different regions can respond to different economic forces, causing differentiated returns. Emerging-market equities seek to generally produce higher returns than international developed equities, but with higher levels of risk of loss. Emerging market countries are becoming more global and house a number of world-class companies.

Fixed Income

Fixed income securities are generally lower risk and seek to generate stable cash flows for investors. In times of rising interests rates, depending on when you invest, there is higher risk of loss. Bond prices and interest rates have an inverse relationship – when interest rates fall, bond prices rise, and when interest rates rise, bond prices fall. Duration is a measure of the price sensitivity of a bond to changing interest rates. Longer duration bonds exhibit greater price sensitivity to interest rate moves than shorter duration bonds. There are two main categories of fixed income that accommodate both taxable and tax-exempt investors. Investors will typically invest in the following bonds:

Non-Traditional Asset Classes

Absolute Return

Absolute return strategies seek to deliver attractive returns that are wholly or partially independent of overall market moves. These actively managed strategies seek to exploit market inefficiencies to generate attractive risk-adjusted returns. Strategies in the absolute return category may have little or no beta to traditional asset classes as a whole (market neutral, merger arbitrage), or may simply have a key driver of performance that is independent of the traditional markets (closed-end fund discount management). In the latter case, the strategy as a whole will likely have some degree of beta to traditional asset classes. Types of absolute return strategies:

Absolute return strategies had historically been offered only in limited partnership vehicles; however, we are seeing more and more managers offering their absolute return strategies within 1940-Act registered mutual funds. We typically access absolute return strategies via mutual funds because of the attractiveness of daily liquidity and daily pricing.

Real Assets

One strategy within real assets, because of their inflation protection characteristics, is Treasury Inflation Protection Securities (TIPS).

Please note: Siebert Investment Advisors Inc. does not provide tax advice.