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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.

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*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 Institutional Composite vs. the Index.  Performance is gross of fees and subject to revision.  Performance calculations are based on the reinvestment of dividends and gains unless these amounts were paid out to the client. Ulland’s Fixed Income Institutional Composite is comprised of all fee-paying accounts invested by Institutional clients. Ulland deems institutional clients to include the following: multi and single family offices, endowments and foundations. As of 04/30/2017 the institutional composite was comprised of 33 accounts and $60.6 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.

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