Asset Classes

• Asset Class: Domestic Equities • Asset Class: Overseas Equities

• Brief description: Domestic equities represent a • Brief description: Overseas equities represent a
partial ownership stake in a US-based business partial ownership stake in an overseas business
• Expected annual returns (L/M/H): Medium to High • Expected annual returns (L/M/H): High
• Volatility (L/M/H): Medium to High • Volatility (L/M/H): High
• Inflation protection (Yes/No): Yes • Inflation protection (Yes/No): Yes
• Currency denomination: USD • Currency denomination: Non USD
• Other distinguishing features: Offers dividends in • Other distinguishing features: Contains currency
addition to gains through change in share price risk
 Asset Classes (cont.)
• Asset Class: Fixed Income Nominal Bonds
• Brief description: Generally pays a set rate of
interest over a given period, then returns the
investor's principal
• Expected annual returns (L/M/H): Low to Medium •
• Volatility (L/M/H): Low • Volatility (L/M/H): Low
• Inflation protection (Yes/No): No
• Currency denomination: USD or Non USD
• Other distinguishing features: Has an inherent
risk of bond issuers defaulting. Could be minimized
if the bond is issued by a developed country’s
government
• Asset Class: Inflation Linked Bonds
• Brief description: Generally pays a set rate of
interest above inflation over a given period, then
returns the investor's principal
Expected annual returns (L/M/H): Low to Medium
• Inflation protection (Yes/No): Yes
• Currency denomination: USD or Non USD
• Other distinguishing features: Payments vary
with inflation
 Asset Classes (cont.)

• Asset Class: Real Estate • Asset Class: Cash and Cash Equivalent
• Brief description: Ownership of a real estate asset • Brief description: Also called currency, or medium
including home or investment property, plus shares of exchange
of funds that invest in commercial real estate • Expected annual returns (L/M/H): None
• Expected annual returns (L/M/H): Low • Volatility (L/M/H): Low
• Volatility (L/M/H): Low • Inflation protection (Yes/No): No
• Inflation protection (Yes/No): Yes • Currency denomination: USD or Non USD
• Currency denomination: USD • Other distinguishing features: Offers high
• Other distinguishing features: Values tend to rise liquidity but loses value over time due to inflation
and fall more slowly than stock and bond prices.
Overall, return consists of regular rental income and
gains through increase in property price