Periodic Table of Investments

October 16, 2020

By jwest on October 16, 2020
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As the Periodic Table of Investments shows, one year’s best performing asset class can be the next year’s worst. We use this chart to remind our clients about the importance of diversification. Having a well-diversified allocation, as indicated by the white boxes, allows our clients to participate in those asset classes that are doing well, while cushioning the impact of those that might not be. Please download a high resolution PDF here.

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Disclaimers

Sources: RMB Capital, FactSet, Bloomberg, Barclays Treasury Intermediate Index, Barclays U.S. Aggregate Index, Barclays U.S. Corporate High Yield, HFRI Fund of Funds Composite Index, S&P 500, Russell 2000, MSCI EAFE Index, MSCI EM Index, CPI Index, Dow UBS Commodity Index, Dow Jones U.S. Select REIT Index, Alerian MLP Index, RMB Asset Allocation Policy.  Asset Allocation represents RMB Capital’s total policy asset allocation return for the period of 2010 to 3Q2020.  RMB Capital’s asset allocation includes 55% equity (S&P 500), 30% fixed income (Barclays Treasury Intermediate), 10% real assets (CPI) and 5% absolute return (HFRI Funds of Funds). Past performance is not indicative of future performance and there is a possibility of a loss. Annualized return and volatility represents a period from 1/1/10 to 9/30/20. Data as of 9/30/20. Please see disclosure page for complete definitions of each index. An investment cannot be made directly in an index. The index data assumes reinvestment of all income and does not bear fees, taxes or transaction costs. The investment strategy and types of securities held by the comparison index may be substantially different from the investment strategy and types of securities held by your account.

Index Definitions:

  • Bloomberg Barclays Aggregate Intermediate US Treasury: The Barclays Intermediate US Treasury Index measures performance of securities in the intermediate range of the US Treasury Index. The US Treasury Index represents public obligations of the US Treasury with a remaining maturity of one year or more. Treasury bills, STRIPS, TIPS and other special issues of state and local government bonds are not included in the US Treasury Index. Securities in the Intermediate US Treasury Index must have a remaining maturity between 1 and 10 years. They must also be investment grade and have at least $250 million par amount outstanding.

  • Bloomberg Barclays High Yield Index:  The Barclays US High Yield Index covers the universe of fixed rate, non-investment grade debt. Eurobonds and debt issues from emerging market countries are excluded, but Canadian and global bonds of issuers in non-emerging market countries are included. The index consists of both corporate and non-corporate sectors. The corporate sectors are industrial, utility and finance, which include both US and non-US corporations. The securities within the index must have at least one year to final maturity, must have at least $150 million par amount outstanding and must be rated as high-yield (BB+ or lower). They must also be fixed rate, dollar-denominated and non-convertible.

  • CPI Index: The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them. Changes in the CPI are used to assess price changes associated with the cost of living; the CPI is one of the most frequently used statistics for identifying periods of inflation or deflation.

  • S&P 500:  The S&P 500 is widely regarded as the best single gauge of the United States equity market. It includes 500 leading companies in leading industries of the US economy. The S&P 500 focuses on the large cap segment of the market and covers approximately 75% of US equities.

  • Russell 2000:  The Russell 2000 Index measures the performance of the small-cap segment of the US equity universe. It includes approximately 2000 of the smallest US equity securities in the Russell 3000 Index based on a combination of market capitalization and current index membership. The Russell 2000 Index represents approximately 10% of the total market capitalization of the Russell 3000 Index.

  • MSCI EAFE (Net):  The MSCI EAFE Index measures international equity performance. It comprises the MSCI country indices that represent developed markets outside of North America: Europe, Australasia and the Far East.

  • MSCI Emerging Markets (Net):  The MSCI EM Index measures equity market performance in the global emerging markets universe. It covers over 2,700 securities in 21 markets that are currently classified as EM countries. The MSCI EM Index universe spans large, mid and small cap securities and can be segmented across all styles and sectors.

  • HFRI Fund of Funds Index:   The HFRI Fund of Funds Composite Index is an equal-weighted index containing over 600 constituent funds. It only includes fund of funds. The equal-weighting of this index provides a more general picture of performance of the fund of funds industry, since any bias towards larger funds is reduced. The constituent funds can be either domestic or offshore, but they all report in US dollars. The funds within the index report net (of all fees) returns on a monthly basis and have at least $50 million under management, or have been actively trading for at least 12 months.

  • Dow Jones UBS Commodity Index: The Dow Jones UBS Commodity Index is a broadly diversified index that allows investors to track commodity futures through a single index. It is composed of commodities traded on U.S. exchanges, with the exception of aluminum, nickel and zinc, which trade on the London Metal Exchange. The Dow Jones UBS Commodity Index serves as the individual benchmark for the Gold/Commodity basket.

  • Dow Jones U.S. Select REIT Index: The Dow Jones U.S. Select REIT Index tracks the performance of publicly traded REITs and REIT-like securities and is designed to serve as a proxy for direct real estate investment, in part by excluding companies whose performance may be driven by factors other than the value of real estate. The index is a subset of the Dow Jones U.S. Select Real Estate Securities Index, which represents equity real estate investment trusts and real estate operating companies traded in the U.S.

  • Alerian MLP Index: The Alerian MLP Index is the leading gauge of energy Master Limited Partnerships (MLPs). The float-adjusted, capitalization-weighted index, whose constituents represent approximately 85% of total float-adjusted market capitalization, is disseminated real-time on a price-return basis (AMZ) and on a total-return basis (AMZX).

The opinions and analyses expressed in this communication are based on RMB Capital Management, LLC’s research and professional experience, and are expressed as of the date of our mailing of this communication. Certain information expressed represents an assessment at a specific point in time and is not intended to be a forecast or guarantee of future results, nor is it intended to speak to any future time periods. RMB Capital makes no warranty or representation, express or implied, nor does RMB Capital accept any liability, with respect to the information and data set forth herein, and RMB Capital specifically disclaims any duty to update any of the information and data contained in this communication. The information and data in this communication do not constitute legal, tax, accounting, investment, or other professional advice. 

This information is confidential and may not be reproduced or redistributed to any other party.

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