How We Invest

INVESTMENT MANAGEMENT PHILOSOPHY

Our greatest advantage is the ability to adapt to the ever-changing market environment and the impact those changes have on our client's investment goals. We don't subscribe to one dogmatic investment style. Rather, we remain objective in our investment selections and flexible in our approach.

PORTFOLIO CONSTRUCTION

We break down portfolio construction into two separate categories:

MANAGEMENT STYLE

ACTIVE MANAGEMENT

The use of an investment manager who actively selects a portfolio of securities based on in-depth research, market forecasting, and the experience of the portfolio manager. The goal of an active manager is to strive to select securities that will outperform the broader market.

PASSIVE MANAGEMENT

This approach is often referred to as “indexing”. This is a management style that strives to mirror the holdings of a particular index. For example, a S&P 500 Index fund holds all 500 stocks of the S&P 500, regardless of the outlook or performance of each stock.

ALLOCATION STYLE

STRATEGIC ASSET ALLOCATION

This is the core allocation of your portfolio and determined by the client's investment objective and risk tolerance. Pure strategic allocation models remain unchanged based on short-term market conditions. This is often known as a “buy and hold” approach.

TACTICAL ASSET ALLOCATION

This is a dynamic strategy that may be used as a compliment to your core strategic allocation. Tactical allocations actively adjust a portfolio's underlying asset classed based on current market and economic conditions. The goal is to either seek to reduce risk or increase return based on the tactical adjustments.

At U Advisors, we manage portfolios utilizing a combination of all four strategies: active, passive, strategic and tactical. We've found that each management and allocation style offer distinct advantages. By evaluating each of our client's goals and financial situation, we're able to make a recommendation unique to their situation.

 

HYPOTHETICAL ALLOCATION