Asset classes are classes or categories of investments and securities which have similar characteristics. Balancing (and rebalancing) asset classes in the portfolio is one way that asset holders achieve the desired goals of the portfolio.
Private placements of primarily equity capital in startups, early-stage companies, or entrepreneurs
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Gain benefits that come from participating in the development of an early stage companies often as part of a broader strategy
Gain benefits that come from participating in the development of an early stage companies often as part of a broader strategy
Short term investment securities that have high credit quality and are highly liquid. There are five types of cash equivalents: treasury bills, commercial paper, marketable securities, money market funds, and short-term government bonds
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Cash will generally lose value against inflation, but it is necessary for liquidity
Cash will generally lose value against inflation, but it is necessary for liquidity
Futures contract for basic goods that are indistinguishable from each other such as grain, gold, or oil, traded on an exchange
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Provides protection in an inflationary environment
Provides protection in an inflationary environment
As an asset class, this includes exposure to currencies through exchange-traded funds and notes
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Provides a hedge against assets held in the investor’s native currency as currency return and the asset return can go in opposite directions
Provides a hedge against assets held in the investor’s native currency as currency return and the asset return can go in opposite directions
Investment products that provide real return rates or periodic income at regular intervals and at reasonably predictable levels. This includes: government-issued, corporate, and inflation-protected securities as well as mortgage-backed and asset-backed securities
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Preserves principal and captures a stable yield (or return). May not hold their value to inflation but that is their primary goal
Preserves principal and captures a stable yield (or return). May not hold their value to inflation but that is their primary goal
Equities that are not quoted on a public exchange, it is comprised of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity
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In exchange for less liquidity, provides growth of assets beyond what the public markets can return
In exchange for less liquidity, provides growth of assets beyond what the public markets can return
Equities sold on a public market or exchange. “Large cap” public equities refer to companies with a market capitalization value of more than $10 billion. “Small cap” refers to stocks market capitalization between $300 million and $2 billion
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Overall, outperforms inflation over a long period and provides liquidity
Overall, outperforms inflation over a long period and provides liquidity
Physical or tangible assets that have value in and of themselves. They are distinct from financial assets whose value derives from a contractual claim on an asset. These include precious metals, commodities, real estate, agricultural land, and oil.
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Low correlation with financial assets such as stocks and bonds and perform well in inflationary times. Also known for high transaction fees and low liquidity.
Low correlation with financial assets such as stocks and bonds and perform well in inflationary times. Also known for high transaction fees and low liquidity.
Investment products other than traditional stocks, bonds, or cash. Including real estate, commodities, and sometimes hedge funds, private equity and art, venture capital, carbon credits, and financial derivatives
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Provides an opportunity for return beyond public equities but sacrifices liquidity and sometimes transparency
Provides an opportunity for return beyond public equities but sacrifices liquidity and sometimes transparency
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