ITEM 7 – Types of Clients
The Advisor traditionally manages individual accounts, as well as accounts for pensions, profit sharing
plans, trusts, estates, charitable organizations, as well as pooled investment vehicles. A minimum account
size of $1,000,000 is required for management consideration. The Advisor is currently not soliciting new
clients.
PIEDMONT INVESTMENT ADVISORY
1001 Summit Blvd NE Phone - (770) 698-5500
Suite 1150
Atlanta, GA 30319 E-mail: info@piainvestmen ts.com
ITEM 8 – Method of Analysi s, Investment Strategies and Risk of Loss
The Advisor uses a traditional blend of fundamental and technical research for selecting proper investments
for Clients. Tax implications are also taken into consideration. However, any tax-related guidance from
Piedmont should not be construed as tax advice. Research includes, but is not limited to, financial
newspapers and periodicals, annual reports and other regulatory filings and press releases, as well as
research materials prepared by brokerage research departments. Certain information on which Piedmont
bases its’ research is generated by the third parties, who are generally reliable and reputable . Despite that
there may be inaccuracies or discrepancies in such information beyond Piedmont’s control. Overall market
or economic conditions – which neither the Advisor nor its principals can predict or control – could have a
material effect on the performance of Clients’ accounts, and no assurance is given that performance will
not be adversely affected by current or future market or economic conditions. Further, there is no
assurance, notwithstanding the Client’s past performance, that the Client’s results will be non-
correlated with (i.e., unrelated to) the general stock and bond markets.
Capital preservation, growth, and income are common objectives used by the Advisor, dependent upon
individual Client needs.
Investments in securities, whether through the services of the Advisor or otherwise, involve risks of loss
that clients should be prepared to bear.
The Advisor currently employs the use of publicly traded equities as well as fixed income for clien t
accounts, that are subject to the following risks:
Management risk: There is no guarantee that Advisor’s judgment about the value and potential appreciation
of a particular asset class or individual security is correct.
Market Risk: Companies issue equities, or stocks, to help finance their operations and future growth. The
value of these securities varies according to how the market reacts to factors relating to the company, market
activity, or the economy in general. For example, when a company is expanding, the market may attach a
positive outlook for the company and the value of their stock may rise. The opposite may also be true. The
market value does not always reflect the intrinsic value of the company.
Emerging markets risk: Securities markets in emerging market countries may be smaller than those in
more developed countries, making it more difficult to sell securities in order to take profits or avoid losses.
Companies in these markets may have limited product lines, markets, or resources, making it difficult to
measure the value of the company. Additionally, public information may be limited with respect to
emerging markets issuers. Therefore, the value of assets invested in emerging markets may rise or fall
substantially.
Small and Mid-Cap issuer risk: Piedmont may invest in securities of issuers with relatively small equity
market capitalization. Smaller capitalization securities involve greater risk than larger capitalization
securities. The securities of such companies may be subject to more volatile market movements than
securities of larger, more established companies, both because the securities are traded in lower volumes
and because the issuers typically are subject to changes in earnings and prospects.
PIEDMONT INVESTMENT ADVISORY
1001 Summit Blvd NE Phone - (770) 698-5500
Suite 1150
Atlanta, GA 30319 E-mail: info@piainvestmen ts.com
Fixed income securities are subject to additional risks, which include:
Interest rate risk: Fixed income securities increase or decrease in value based on changes in interest rates.
If rates increase, the value of fixed income securities generally declines, and vice versa. Also, securities
denominated in currencies other than U.S. dollar generally have interest rate risk based on interest rates in
counties outside the United States. Such interest rates may behave differently than interest rates in the
United States, potentially causing the price of such securities to fall at the time when interest rates in the
U.S. are causing the price of U.S. dollar denominated debt to rise.
Duration risk: The longer the maturity of fixed income security, the more its price will vary as levels of
interest rates change. Piedmont may invest in securities with long-dated maturities. Duration risk is a
measure of how sensitive a security or portfolio is to moves in interest rates. When investment strategies
have significantly longer duration than their benchmark index, they are likely to be more volatile when
market interest rate materially changes.
Credit risk: This is the risk that issuers and counterparties will not make payments on the securit ies
they issue. In addition, the credit ratings of securities may be lowered if an issuer’s financial condition
...