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Defensive Growth using Preferred Securities

Today, it is more difficult than ever to achieve meaningful returns with an acceptable level of risk. Defensive Growth aims to do just that using preferred securities as a core holding, in addition to traditional preferred securities. This strategy is designed for those who might otherwise avoid equity exposure or are unsatisfied with low CD and money market returns.

Over the last 10 years, equities have provided investors with inconsistent returns and increasing volatility. For this reason, the Defensive Growth strategy has become increasingly attractive to our clients, especially those with more immediate income needs. The portion of the portfolio allocated to preferred securities and other fixed income will be determined by market conditions and your risk tolerance.

*Performance quoted is past performance. Past performance is not indicative of future performance. Current performance may be lower or higher than performance shown. Differences in performance versus the Index may be attributable, in part, by differences in the asset make-up of the Fixed Income Composite vs. the Index.  Performance calculations are based on the reinvestment of dividends and gains unless these amounts were paid out to the client.

The Fixed Income Composite includes all portfolios invested 100% in fixed income securities which includes cash, preferred stock, corporate bonds and other subordinated securities. The account minimum for the composite is $150,000, with no margin. Prior to July 1, 2017 fixed income accounts were included in the Defensive Growth Strategy. Post July 1, 2017 all new 100% fixed income accounts were included in the  Intelligent Fixed Income Strategy. As of 07/31/2017 the fixed income composite was comprised of  accounts and $137 million in assets. The Fixed Income Institutional Composite is invested predominately in U.S. listed preferred stock. Securities include both $25 and $1,000 issues.

Investing involves risk; principal loss is possible. The principal risks of investing in the Strategy include interest rate risk: the value of fixed income securities are impacted by changes in interest rates. Bonds and preferred securities with longer durations tend to be more sensitive and more volatile than securities with shorter durations; bond prices generally fall as interest rates rise. Other risks include call risk, market risk and liquidity risk. Investors should consider the investment objectives, risk, charges, and expenses of this Strategy carefully before investing.  This and other important information can be obtained by contacting Ulland Investment Advisors.

*Barclays Aggregate Bond Index: The Barclays U.S. Aggregate Bond Index is a broad based benchmark measuring the performance of the U.S. investment grade, taxable bond market, including U.S. Treasuries, government-related and corporate bonds, mortgage pass-through securities, commercial mortgage-backed securities, and asset-backed securities that are publicly available for sale in the United States. The securities in the index must be fixed rate, non-convertible, U.S. dollar denominated with at least $250 million or more of outstanding face value and have one or more years remaining to maturity. Index returns are for illustrative purposes only. Index performance returns do not reflect and management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does  not guarantee future results.


4550 IDS Center · Eighty South Eighth Street · Minneapolis MN 55402 · Telephone: 612-312-1400 · Facsimile: 612-204-3464