Diversify Your Portfolio *

Financial risk management specialists can help you diversify your portfolio, which may help reduce volatility and protect your savings.

Perhaps you are a senior executive who has received a large portion of your compensation in company stock or options. Or maybe you inherited a significant amount of stock in one or two companies. In these situations, the assets in your investment portfolio may not be properly allocated, which can result in increased volatility and the potential for greater loss of principal.

To diversify your portfolio, your investment team may look at solutions that include:

Help protect your hard-earned assets with a risk management strategy.

Our specialists can develop a solution tailored to your needs.

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Financial risk management solutions may include:

  • Options. These can be used as a strategy for generating income or to help protect against downside risk, although it may limit your upside potential.
  • Collars. Collars provide temporary price protection from a large downward move on a stock. If you are willing to give up some upside potential in order to minimize downside risk, an equity collar may be an appropriate and cost-effective tool.
  • Prepaid Forward Contracts. These can be used to monetize a concentrated stock position without selling the stock, and as a potential way to defer taxes. Prepaid forwards may also help to protect against downside risk while retaining a portion of upside potential and generating cash for investing.

 Disclosures

*Asset Allocation, Alternative Investment and Hedging/Diversification strategies are intended to mitigate the overall risk within your portfolio. Some strategies may be subject to a higher degree of market risk than others. An investor should understand the costs, cash flows and risks inherent in a strategy prior to making any investment decision. There are no guarantees that any strategy presented will perform as intended.

The information contained herein is for information purposes only, is not designed to address your financial situation or particular needs and does not constitute the rendering of tax or legal advice. You should consult with your tax advisor or attorney for advice pertinent to your personal situation.

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