Active Management Risk
Active management involves risk as it attempts to outperform a benchmark index by predicting market activity, and assumes considerable risk should managers incorrectly anticipate changing conditions.
Alternative Investments Risk
Alternative investments may not be suitable for all investors and involve special risks such as leveraging the investment, potential adverse market forces, regulatory changes and potentially illiquidity. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.
Asset Allocation Risk
Investments that are allocated across multiple types of securities may be exposed to a variety of risks based on the asset classes, investment styles, market sectors, and size of companies preferred by the investment managers. Investors should consider how the combined risks impact their total investment portfolio and understand that different risks can lead to varying financial consequences, including loss of principal.
Bank Loan Risk
Bank loans are loans issued by below investment-grade companies for short-term funding purposes with higher yield than short-term debt and involve risk.
Bond Risk – General
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.
Bonds Yield Risk
Bond yields are subject to change. Certain call or special redemption features may exist which could impact yield.
Collateralized mortgage obligations (CMO) Risk – Short
Collateralized mortgage obligations (CMOs) and stripped mortgage-backed securities, including those structured as interest-only (IOs) and principal-only (POs), are subject to credit, default, prepayment, extension, market, and interest rate risk. They are more volatile and may be more sensitive to the rate of prepayments than other mortgage-related securities.
Commodities Risk – Long
Commodity-linked investments may be more volatile and less liquid than the underlying instruments or measures, and their value may be affected by the performance of the overall commodities baskets as well as weather, geopolitical events, and regulatory developments. The fast price swings in commodities and currencies will result in significant volatility in an investor’s holdings.
Currency risk is a form of risk that arises from the change in price of one currency against another. Whenever investors or companies have assets or business operations across national borders, they face currency risk if their positions are not hedged.
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.
The payment of dividends is not guaranteed. Companies may reduce or eliminate the payment of dividends at any given time.
Environmental, social and governance (ESG) Risk
Environmental, social and governance (ESG) funds are subject to the risk of underperforming the broader equity market or other funds that do not utilize ESG criteria.
Event Driven Strategies Risk
Event driven strategies, such as merger arbitrage, consist of buying shares of the target company in a proposed merger and fully or partially hedging the exposure to the acquirer by shorting the stock of the acquiring company or other means. This strategy involves significant risk as events may not occur as planned and disruptions to a planned merger may result in significant loss to a hedged position.
Exchange Traded Funds (ETFs) Risk
Exchange Traded Funds (ETF) are subject to risks including but not limited to the loss of principal, price volatility, competitive industry pressure, international political and economic developments, possible trading halts, index tracking errors and are not diversified. For fund specific risks please refer to the prospectus.
Fixed and Variable Annuity Risk
Fixed and Variable annuities are suitable for long-term investing, such as retirement investing. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply. Variable annuities are subject to market risk and may lose value.
Investing in gold is subject to risks including loss of value. The price swings in commodities and currencies can result in significant volatility in an investor’s holdings.
International and emerging market (EM)
Investing in foreign and emerging markets securities involves special additional risks. These risks include, but are not limited to, currency risk, geopolitical risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks.
Mortgage-Backed Securities (MBS) Risk
Mortgage backed securities are subject to credit, default, prepayment, extension, market and interest rate risk.
Mutual fund Risk – Long
Investing in mutual funds involves risk, including possible loss of principal. The funds value will fluctuate with market conditions and may not achieve its investment objective. Upon redemption, the value of fund shares may be worth more or less than their original cost.
Options are not suitable for all investors and certain option strategies may expose investors to significant potential losses such as losing entire amount paid for the option.
Precious metal Risk
Precious metal investing is subject to substantial fluctuation and potential for loss.
Real Estate Investment Trusts (REITs) risk
Investing in Real Estate Investment Trusts (REITs) involves special risks such as potential illiquidity and may not be suitable for all investors. There is no assurance that the investment objectives of this program will be attained.
Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.
Because of their narrow focus, sector investing will be subject to greater volatility than investing more broadly across many sectors and companies.
Separately Managed Account (SMA) risk disclosures
In choosing to participate in a SMA, investors should carefully consider the amount they plan to invest; their investment objectives; and the SMA’s investment objectives, risks, charges and expenses before investing.
Investing in a SMA involves direct ownership of the assets purchased by the investment manager on the investor’s behalf. Therefore, all investors should understand and be able to bear all of the risks associated with the underlying assets. The amount and type of investment restrictions are subject to change and manager’s acceptance. The structure of SMAs exposes them to special risks including taxation risk, portfolio risk, and potentially high fees.
Stock Risk – Long
Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market.
Tactical Allocation risk
Tactical allocation may involve more frequent buying and selling of assets and will tend to generate higher transaction cost. Investors should consider the tax consequences of moving positions more frequently.
Technical Analysis Risk
Technical analysis is a methodology for evaluating securities based on statistics generated by market activity, such as past prices, volume and momentum, and is not intended to be used as the sole mechanism for trading decisions. Technical analysts do not attempt to measure a security’s intrinsic value, but instead use charts and other tools to identify patterns and trends. Technical analysis carries inherent risk, chief amongst which is that past performance is not indicative of future results. Technical analysis should be used in conjunction with Fundamental analysis within the decision making process and shall include but not be limited to the following considerations: investment thesis, suitability, expected time horizon, and operational factors, such as trading costs are examples.
Treasury inflation-protected securities (TIPS) risk
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.
Unit Investment Trusts (UIT) risk
Unit Investment Trusts (UITS) are a fixed portfolio of securities with a set term. Strategies are long term, therefore investors should consider their ability to pursue investing in successive trusts and the tax consequences.
Value Investment Risk
Value investments can perform differently from the market as a whole. They can remain undervalued by the market for long periods of time.