Asset Allocation Guide Combination Portfolios

Transcription

1 Asset Allocation Guide Combination Portfolios LPL Financial Research As of May 20, 2016 Aggressive Growth Cash Equities Nontraditional Mid Value Diversified Diversified Plus Tax Aware Diversified Tax Aware Diversified Plus Alpha Focused Diversified Alpha Focused Diversified Plus American Funds Active Core Diversified Diversified Plus Income Focused Socially Responsible Investing Member FINRA/SIPC Page 1 of 8

2 Aggressive Growth Cash Equities Nontraditional Mid Value Tactical Opportunities Diversified Plus LPL Financial Member FINRA/SIPC Page 2 of 8

3 Growth Cash Equities Fixed Income Nontraditional Mid Value Short/Intermediate Bond Intermediate-/Long-Term Bond High-Yield Bond Mortgage-Backed Securities Strategic Income Short-Term Municipal Bond Intermediate-Term Municipal Bond Tax-Free High-Yield Bond Multisector Bond Long/Short Diversified Diversified Plus Tax Aware Diversified Tax Aware Diversified Plus Alpha Focused Diversified Alpha Focused Diversified Plus Alternative Strategies American Funds Active Core Diversified Diversified Plus Income Focused Socially Responsible Investing LPL Financial Member FINRA/SIPC Page 3 of 8

4 Growth with Income Cash Equities Fixed Income Nontraditional Mid Value (Nontraditional) Short/Intermediate Bond Intermediate-/Long-Term Bond High-Yield Bond Bank Loans Mortgage-Backed Securities Strategic Income Short-Term Municipal Bond Intermediate-Term Municipal Bond Long-Term Municipal Bond Tax-Free High-Yield Bond Multisector Bond Nontraditional Bond Absolute Return Long/Short Diversified Diversified Plus Tax Aware Diversified Tax Aware Diversified Plus Alpha Focused Diversified Alpha Focused Diversified Plus Alternative Strategies Alternative Strategies Plus American Funds Active Core Diversified Diversified Plus Downside Risk Aware Diversified Downside Risk Aware Diversified Plus Income Focused Quad-Core Socially Responsible Investing LPL Financial Member FINRA/SIPC Page 4 of 8

5 Income with Moderate Growth Cash Equities Fixed Income Nontraditional (Nontraditional) Short/Intermediate Bond Intermediate-/Long-Term Bond Long High-Quality Bond High-Yield Bond Bank Loans Mortgage-Backed Securities Strategic Income Short-Term Municipal Bond Intermediate-Term Municipal Bond Long-Term Municipal Bond Tax-Free High-Yield Bond Multisector Bond Nontraditional Bond Absolute Return Long/Short Diversified Diversified Plus Tax Aware Diversified Tax Aware Diversified Plus Absolute Return Diversified Plus Alternative Strategies Alternative Strategies Plus American Funds Active Core Diversified Diversified Plus Downside Risk Aware Diversified Downside Risk Aware Diversified Plus Income Focused Quad-Core Income Socially Responsible Investing LPL Financial Member FINRA/SIPC Page 5 of 8

6 Income with Capital Preservation Cash Equities Fixed Income Nontraditional Short/Intermediate Bond Intermediate-/Long-Term Bond High-Yield Bond Bank Loans Mortgage-Backed Securities Strategic Income Short-Term Municipal Bond Intermediate-Term Municipal Bond Long-Term Municipal Bond Tax-Free High-Yield Bond Multisector Bond Diversified Diversified Plus Tax Aware Diversified Tax Aware Diversified Plus American Funds Active Core Diversified Diversified Plus Downside Risk Aware Diversified Downside Risk Aware Diversified Plus Income Focused Socially Responsible Investing LPL Financial Member FINRA/SIPC Page 6 of 8

7 IMPORTANT DISCLOSURES The opinions voiced in this material are for general information only and are not intended to provide any specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. Past performance is no guarantee of future results. The illustrated indices are unmanaged and cannot be invested into directly. International and emerging markets investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. Investing in mutual funds involve risk, including possible loss of principal. Investments in specialized industry sectors have additional risks, which are outlined in the prospectus. Principal risk: An investment in Exchange Traded Funds (ETFs), structured as a mutual fund or unit investment trust, involves the risk of losing money and should be considered as part of an overall program, not a complete investment program. An investment in ETFs involves additional risks: not diversified, the risks of price volatility, competitive industry pressure, international political and economic developments, possible trading halts, and Index tracking error. Municipal bonds are subject to availability and change in price. They are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise. Interest income may be subject to the alternative minimum tax. Municipal bonds are Federally tax-free but other state and local taxes may apply. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values and yields will decline as interest rates rise and bonds are subject to availability and changes in price. High yield/junk bonds (grade BB or below) are not investment grade securities, and are subject to higher interest rate, credit, and liquidity risks than those graded BBB and above. They generally should be part of a diversified portfolio for sophisticated investors. Precious metal investing is subject to substantial fluctuation and potential for loss. The fast swings of commodities will result in significant volatility in an investor s holdings. Energy Sector: Companies whose businesses are dominated by either of the following activities: The construction or provision of oil rigs, drilling equipment and other energy-related service and equipment, including seismic data collection. The exploration, production, marketing, refining and/or transportation of oil and gas products, coal and consumable fuels. Consumer Discretionary Sector: Companies that tend to be the most sensitive to economic cycles. Its manufacturing segment includes automotive, household durable goods, textiles and apparel, and leisure equipment. The service segment includes hotels, restaurants and other leisure facilities, media production and services, consumer retailing and services and education services. Preferred stock investing involves risk including loss of principal. Small cap stocks may be subject to a higher degree of risk than more established companies securities. The illiquidity of the Small Cap market may adversely affect the value of these investments. Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. However, the value of a fund shares is not guaranteed and will fluctuate. Investing in real estate/reits involves special risks such as potential illiquidity and may not be suitable forall investors. There is no assurance that the investment objectives of this program will be attained. An increase in interest rates may cause the price of bonds and bond mutual funds to decline. LPL Financial Member FINRA/SIPC Page 7 of 8

8 Mid-Capitalization companies are subject to higher volatility than those of large-capitalized companies. Unconstrained Eclectic strategies have a flexible investment style that does not limit the fund to a single asset class or security type. Absolute Return has a goal of providing positive returns in all market conditions. It tends to have low volatility, provide bond-like returns, and have a very low correlation to bonds and stocks. Value investments can perform differently from the markets as a whole. They can remain undervalued by the market for long periods of time. Because of their narrow focus, sector investing will be subject to greater volatility than investing more broadly across many sectors and companies. Mortgage Backed Securities are subject to credit, default, prepayment risk that acts much like call risk when you get your principal back sooner than the stated maturity, extension risk, the opposite of prepayment risk, market and interest rate risk. Consumer Staples Sector: Companies whose businesses are less sensitive to economic cycles. It includes manufacturers and distributors of food, beverages and tobacco, and producers of non-durable household goods and personal products. It also includes food and drug retailing companies. Health Care Sector: Companies are in two main industry groups Health care equipment and supplies or companies that provide health care-related services, including distributors of health care products, providers of basic health care services, and owners and operators of health care facilities and organizations. Companies primarily involved in the research, development, production, and marketing of pharmaceuticals and biotechnology products. Bank loans are loans issued by below investment-grade companies for short-term funding purposes with higher yield than short-term debt and involve risk. Non Traditional investments may not be suitable for all investors and should be considered as an investment for the risk capital portion of the investor s portfolio. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses. Neither LPL Financial nor any of its affiliates make a market in the investment being discussed nor does LPL Financial or its affiliates or its officers have a financial interest in any securities of the issuer whose investment is being recommended neither LPL Financial nor its affiliates have managed or co-managed a public offering of any securities of the issuer in the past 12 months. This research material has been prepared by LPL Financial. To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial is not an affiliate of and makes no representation with respect to such entity. Not FDIC or NCUA/NCUSIF Insured No Bank/Credit Union Guarantee May Lose Value Not Guaranteed by any Government Agency Not a Bank/Credit Union Deposit Member FINRA/SIPC Page 8 of 8 RES Tracking # (Exp. 05/17)