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Every investor tends to have a unique combination of objectives, such as income needs, wealth enhancement goals, and risk tolerances. Each of our investment strategies was created to achieve certain objectives, but can be further combined to help investors of many stripes.
This graphic is for illustrative purposes only. It is not indicative of actual strategy performance, and is used to illustrate the spectrum of strategies made available to clients based on varying levels of potential risk and potential reward. Clients invested in the above or similar strategies may experience investment results that are materially different from the general parameters reflected above. The above does not represent actual trading using client assets, and does not incorporate economic and market factors that may impact overall investment performance. Please refer to the disclosures for more information in this respect.
Our approach to value investing focuses on identifying businesses we consider to be high-quality and deeply discounted. When a business is on solid footing, it often receives a high credit rating. Similarly, we define quality by understanding a company’s credit worthiness and the soundness of its business model. As a result, sound businesses that have little need to raise capital also have greater flexibility to execute their operating and growth strategies.Further, we believe companies that are governed by boards and executives who are in the habit of sharing their earnings through dividend payments have strong incentives for long-term business success. As such, the Disciplined Value strategy favors companies that possess these hallmarks of quality and are trading at prices that we believe reflect a significant discount to fair value.
There are more than twenty different asset classes which may generate investment income. The attraction of each different income producing asset class depends upon many factors including interest rates, inflation and position in various economic cycles. Many of these asset classes are not as sensitive to interest rates as bonds; however, they may be more sensitive to economic cycles.All investments possess different risk factors which must be carefully considered prior to purchase. We review these methods of income generation and actively allocate capital to those asset classes we view as offering a higher level of income with a lower probability of capital depreciation when compared to traditional fixed income investments and with regard to current economic cycles.
For investors seeking broad exposure to global stock markets, the Global strategy offers a value-oriented solution. The strategy invests in a variety of stocks, exchange-traded funds (ETFs) and closed-end funds (CEFs). Aviance’s search for global value among ETFs focuses on broad market securities and attractive fundamental characteristics.Further, the strategy invests in stock of large global oriented companies that are generally trading at what we believe to be discounts to a fair market value. This approach seeks to provide a way to take advantage of discounted investments in the global space.
Growth characteristics are one of acceleration, change and improving fundamentals. Our proprietary analysis looks for intrinsic markets that can portend growth while simultaneously looking for favorable entry points – referred to as “Growth at a Reasonable Price” (GARP).Aviance Capital Partners conducts screens looking for acceleration in areas that include earnings growth, sales growth, margin expansion and discretionary cash flow. As we evaluate our screen results, we focus on predominately large-cap companies with a net present value above the current market price based on cash flow calculations and attempt to set valuation strike points.
Our Core Plus Fixed Income strategy is suited for investors seeking broad exposure to bond markets with the potential for attractive rates of distributed income. The strategy invests in a variety of exchange-traded funds (ETFs) and closed-end funds (CEFs). The Core element of the strategy invests in ETFs that seek to match the performance of the broad fixed-income markets.The Plus element of the strategy seeks to outperform the fixed-income market by investing in fixed-income oriented CEFs that are generally trading at a significant discount to net asset value.
For investors seeking to preserve capital and generate income, we offer traditional bond portfolios consisting of investment-grade credit quality bonds such as municipal, corporate, and/or government issued. Each portfolio is custom built to serve the needs of the investor. We seek to add value by taking advantage of the shape of the yield curve, attractive spread opportunities, and issue-specific opportunities.
We strive to serve our clients during the financial planning process through deep and meaningful relationships that last for generations.
Neither personalized services nor proprietary investment strategies should be construed as a guarantee of a particular outcome. Past performance does not guarantee future results. All investing, including those methods and strategies discussed herein, comes with risk, including risk of loss.