Capital Management

Studies have shown that commodities as an asset class can provide risk-adjusted benefits to a diversified portfolio of stocks and bonds. Tangible goods, such as agriculture or energy related commodities sometimes react to economic conditions differently than stocks or bonds. Typically, when inflation rises, the cost of producing goods or borrowing funds increases, negatively impacting many stock or bond investments.

Commodities can sometimes benefit in this environment, as rising inflation may drive up prices for raw materials, including certain commodities. Commodities have also been shown to offer unique risk and return opportunities.

Stephens’ Real Return Strategy provides protection against inflation and monetary instability through investments that are likely to perform well during inflationary periods. It invests in a broad spectrum of inflation sensitive securities including stocks, bonds and exchange traded funds.

The portfolio concentrates its investments in securities related to commodities. The broad range of component investments provides a high level of diversification across the individual commodity markets. The weightings of each component of the portfolio may vary throughout the year. The portfolio may engage in short selling of securities.

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