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Item 8. Methods of Analysis, Investment Strategies and Risk of Loss

 

A. Description of the methods of analysis and investment strategies we use in formulating investment advice or managing assets.

Methods of Analysis:

• Global Macro
• Analysis of Sectors and Industries
• Top Down Value
• Underlying Fundamentals;
• Cyclical
• Technical.

Investment Strategies we use:

• Long-term purchases (securities held at least a year);
• Short-term purchases (securities sold within a year);
• Trading (securities sold within 30 days);
• Short sales;
• Margin transactions;
• Option; including, covered call writings, uncovered calls and puts purchases and/or spreading strategies.

Risk of Loss:

Investing in securities involves risk of loss that clients should be prepared to bear. While the stock and bond markets may increase in value and consequently your account(s) could follow suite, it is also possible that the stock and bond markets may decrease in value, and consequently your account(s) could suffer a loss. It is important that you understand the risks associated with investing in the stock and bond markets, your investment portfolios are appropriately diversified, and that you ask any questions you may deem important for managing your investment portfolio(s).

Alternative Investments:

For clients who own alternative investments, the absence of a public market, lack of liquidity and an expected long term investment time horizon may include the following risks that you should consider:

  • You may experience the risk that your investment or assets within your investment may not be able to be liquidated quickly, thus, extending the period of time by which you may receive the proceeds from your investment.
    Liquidity risk can also result in unfavorable pricing when exiting (i.e. not being able to quickly get out of an investment before the price drops significantly) a particular investment and therefore, can have a negative impact on investment returns.
  • No guarantee that investors will receive a distribution. Distributions may be derived from the proceeds of the offering, from borrowings, or from the sale of assets, and we have no limits on the amounts we may pay from such other sources. Payments of distributions from sources other than cash flow from operations may decrease or diminish an investor's interest;
  • Economic factors affecting the real estate markets generally, including changes in the economy, tenant turnover, interest rates, availability of mortgage funds, operating expenses, cost of insurance and tenants' ability to continue to pay rent;
  • No connection between the share price of the REIT and the net asset value of the REIT until such time as the assets are valued.