Take a number —The number in the portfolios represents the approximate percentage of riskier assets in each portfolio. The riskier assets include stocks, real estate, and commodities. The higher the number, the greater the risk and the higher expected return. For example, The Prium 80 holds approximately 80% in riskier assets while the remaining 20% is held in bonds. A portfolio with a lower number would have less risk and less expected return.
Invest for the long term —The portfolios are globally diversified across many asset classes in order to enhance the risk and reward tradeoff. Over time the diversification helps to reduce risk. The chart below shows the risk and returns of the six Prium Global Portfolios compared to an investment in the S&P 500 only and an investment in Treasury Bills only. All of the Prium portfolios had less risk than the S&P 500.
|LESS RISK||→||→||→||→||MORE RISK|
|PRIUM 20||PRIUM 35||PRIUM 50||PRIUM 65||PRIUM 80||PRIUM 90|
Hypothetical Performance of the Prium Global Portfolios from 1970-2005
Disclaimer – Past results are not a guarantee of future performance. Diversification does not prevent possible losses; however it is a prudent strategy. The value of any investment will fluctuate over time. Transaction costs and taxes will reduce an investment’s actual return.
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