Innovative Approach to Portfolio Creation

At The Infinity Group of Raymond James & Associates, we take an innovative approach to portfolios. We believe portfolio creation and manager selection should be driven by the value, or return, added. Managers can add more return in one of two ways:

The first approach is by taking on greater risk (called beta¹) than the benchmark index. Adding value in this way depends entirely on the direction of the market.

The second approach is simply by choosing the right investments, which is our definition of "skill." Adding value in this way (called alpha²) is independent of market direction. We believe this is the best way to select investment managers - and the best way to create your investment portfolio.

¹Beta: Compares volatility of a security with an index, such as the S & P 500. A beta of one means the security has volatility equal to that of an index.

²Alpha: Compares a portfolio's actual returns with those that would be expected by its beta. A positive alpha means that for the given amount of volatility, the portfolio returned more than expected when compared to the benchmark index. Alpha and beta measures are historical.

Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation.

* Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. There is no assurance that any investment will meet its investment objectives or that substantial losses will be avoided. Diversification and asset allocation do not ensure a profit or protect against a loss.