The Defensive Growth style aims to provide stability in the uncertain and volatile market environment we have experienced over the past 18 months.  Using a combination of moderately growing larger companies, hybrid trust preferred securities and corporate bonds, UIA's Defensive Growth strategy is designed for those who might otherwise avoid equity exposure or are unsatisfied with low CD and money market returns.

Part of the stability is achieved by including trust preferred securities yielding 8 percent, on average. Read more about trust preferred securities, here.  We also use corporate bonds paying 5-6 percent.  The portion of the portfolio allocated to fixed income will be determined by market conditions and client risk tolerance. During difficult equity markets, this allocation will be larger.

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.