The Exempt Market products have distinct advantages for investors.

Diverse Portfolios

Our investors seek a diversified, balanced, modern portfolio and thus have found that combining traditional market products with exempt market products can provide highly diversified, stable portfolios that can protect investors from market volatility

Portfolio Benefits

Investopedia summarizes Modern Portfolio Theory as  “an investment theory based on the idea that risk-averse investors can construct portfolios to optimize or maximize expected return based on a given level of market risk, emphasizing that risk is an inherent part of higher reward.  It is one of the most important and influential economic theories dealing with finance and investment.”

Also called “portfolio theory” or “portfolio management theory,” MPT presents a strategy whereby an “efficient frontier” of optimal portfolios is constructed, offering the maximum possible expected return for a given level of risk.  It suggests that it is not enough to just look at the expected risk and return of one particular stock, but to balance out risks and rewards by investing in multiple stocks to fit a certain level of risk.  By engaging in MPT and investing in more than one stock, an investor can reap the benefits of diversification, also known as not putting all of your eggs in one basket.

Diverse portfolios respond better to volatility and risk over long periods of time.  This makes them more efficient in regards to risk, as they achieve higher returns for each increment of risk taken.

Capital Street Group’s Exempt Products can pose a highly profitable component of an MPT strategy should you adopt it. Traditional investment portfolios are made up of stocks and bonds, which may be packaged up in mutual or segregated funds.  The general consensus has been that these investments should create the core of a portfolio.  However, since the recession of 2008, this type of investment has taken a serious hit; one which is further soured by the related service charges.  This has led to a desire among investors to seek out investments outside these traditional securities.  Many Exempt Market Products consist of an investment directly into the product such as real estate, private equity, venture capital, hedge funds, and real assets. These kinds of investments are finding increasing acceptance due to their abilities in smoothing overall portfolio returns, as they operate differently than public market securities and thus can help to negate downward trends.

At Capital Street Group, we understand that our investors seek a diversified, balanced, modern portfolio and thus have found that combining traditional market products with exempt market products can provide highly diversified, stable portfolios that are resistant to market trends.

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