Value & Principal Protections
Cornerstone Advisory has been building custom notes for clients since the firm was founded in 2007. It is important to remember that these investments contain an intrinsic value that is not reflected in typical performance reporting or in custodial statements.
We use the term "intrinsic value" as a way to quantify the value of the embedded hedges in a portfolio. In other words, it reflects the additional principal value that would be realized if all of the notes were to mature based on current market conditions.
Most of Cornerstone Advisory's Outcome Driven investments include some level of principal protection. The amount of protection and the point at which it comes into play vary with each note. In times of asset price dislocation, we encourage you to discuss with your advisor how these protections play out.
Cornerstone Advisory, LLC, is registered as an investment adviser with the SEC. The firm only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. Registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.
Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or strategy will be profitable or equal to past performance levels.
All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions or withdrawals, and economic conditions may materially alter the performance of your portfolio.