Defensive Growth using Trust Preferred Securities

UIA’s Defensive Growth strategy is focused on long-term growth while providing a higher degree of short-term stability than the typical portfolio of stocks.

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 trust 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 trust preferred securities and other fixed income will be determined by market conditions and your risk tolerance.

Portfolios comprised solely of trust preferreds and traditional preferred securities have dividend  yields over 7 percent.

Defensive Growth Allocation