THE BROAD UNIVERSE OF INVESTMENTS
When constructing portfolios, our primary purpose for diversification is to help control overall portfolio volatility in an effort to optimize returns. In many cases, assets held together have Iower volatility than as stand-alone investments. Effective volatility management relies on low asset correlations by design, and requires a large selection of investment securities to capture the diversification potential of every asset class possible. Based on an investor's risk parameters, our portfolio construction focuses on identifying holdings with potential to help reduce risk or enhance return. The broad selection of investment possibilities is consolidated by identifying holdings that meet the needs of the investor, and holdings that don't perform either function can be eliminated.
 * There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

REDUCING INVESTMENT CORRELATION WITH THE MARKET
Taking advantage of alternative strategies and asset classes can help lower portfolio correlations, temper volalility, and efficiently pursue new sources of income. Alternative investments can be a critical component of overall portfolio strategy, as they offer non-correlated returns, exposure to new sources of return, and strategies not typically found in traditional investments.
Introducing alternatives to a portfolio of traditional assets can be done in a variety of ways, based on the portfolio construction discipline being used:
> As part of an alternative or "other" bucket in the portfolio mixture.
> As a satellite to core holdings for alpha generation.
> As a risk-managed component of core portfolio holdings.
The approach to alternative investments depends on the investor's investment objectives and risk parameters, and may be used to either manage portfolio risk or pursue new sources of return. A thorough evaluation with your financial advisor is necessary to determine the most appropriate strategies.

 * Alternative 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.

A SMARTER USE OF TRADITIONAL INVESTMENTS 
It is critical to seek new ways to harness the long-term potential of stocks and bonds. Seeking additional portfolio performance, or "alpha", can be an efficient way to capitalize on the long-term potential of stocks and bonds over time. Each asset class has strengths and weaknesses in terms of managing overall portfolio risk and generating potential returns. Equities have historically demonstrated growth potential that has outpaced inflation, however, some investors find that market volatility more challenging. Smarter use of equities can include techniques such as using high-conviction equities that seek to amplify return potential, hedged equity to help offset voliatility, and dividend-paying stock to help improve return stability.  Fixed-income allocations are necessary to provide income and the potential for capital appreciation, however, when rates rise bond prices can fall and cause losses in the conservative portion of the portfolio. Smarter uses of fixed-income may include, absolute return strategies to help manage risk, TIPS or inflation-aware bond strategies to help protect against inflation risk, non-U.S. fixed income securities that may help offset rising interest rates in the U.S. as well as other options.
 
* Alpha measures the difference between a portfolio’s actual returns and its expected performance, given its level of risk as measured by Beta. A positive (negative) Alpha indicates the portfolio has performed better (worse) than its Beta would predict. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price. Treasury inflation-protected securities (TIPS) help eliminate inflation risk to your portfolio as the principal is adjusted semiannually for inflation based on the Consumer Price Index – while providing a real rate of return guaranteed by the U.S. Government. Treasury Inflation-Protected Securities, or TIPS, are subject to market risk and significant interest rate risk as their longer duration makes them more sensitive to price declines associated with higher interest rates. International debt securities involve special additional risks. These risks include, but are not limited to, currency risk, geopolitical and regulatory risk, and risk associated with varying settlement standards. These risks are often heightened for investments in emerging markets.

UNCOVERING RISKS WORTH INSURING
Insurance is a means of protection from an unaffordable loss or cost that could cause financial devestation for you, your dependant family, or your business. Strategically choosing to insure or transfer the financial burden, which may arise due to some fortuitous event, to an insurance provider can be an effective portfolio tool for mitigating risks that could cause your wealth management strategy to fail.
Today, insurance is an important part of an overall strategic financial plan, and can be a vital funding and tax-advantaged mechanism for individuals, families, trusts, estates and businesses alike. Continuing enhancements in the type and structure of insurance solutions have helped to improve thier efficiency, flexibility and application of use.
Depending on your specific circumstances, it can take many forms, including:
> Life Insurance
> Disability Insurance
> Long-term Care Insurance
> Annuities 
> Other specialized or hybrid forms  
 The approach to incorporating insurance in a wealth managment strategy depends on the investor's unique circumstances, objectives and risk parameters, and may be used to either manage the risk of loss or pursue additional tax-advantaged saving and income. A thorough evaluation with your financial advisor is necessary to determine the most appropriate strategies.