Download Fund Details Ulland AUM : $200 million Strategy Assets : $140

Ulland Investment Advisors, Inc.
Defensive Growth Strategy Using Preferred Securities and Subordinated Debt
A Compelling Solution for Today’s Low Yield Environment
For Period Ending 7/31/2016
Strategy Description
Strategy Details
The Defensive Growth Strategy provides aboveaverage yields and preservation of capital with
investments primarily in preferred and hybrid
securities issued by large banks. A typical portfolio
maintains an average asset weighting of 40% US
and European hybrid securities, and 60%
traditional preferred securities, exchange traded
debt, and similar securities. 70%-80% of the
dividends are treated as qualified dividends, which
are tax advantaged. Portfolios favor short to midrange maturities/redemptions to guard against a
rise in interest rates. All securities used are
publicly traded. Client accounts are separately
managed.
Strategy Performance
240%
220%
210%
200%
206%
180%
Assets Under Mgmt.
$295 million
Assets in Strategy
Min. Account Size
Strategy Inception
Current Yield
$225 million
$300,000
1/1/2009
6.75%
Summary of Returns
Year
2009
2010
2011
2012
2013
2014
2015
2016
Return for
Period
32.78%
15.82
-2.13
16.17
6.61
3.49
-2.09
5.94
Assets in
Strategy
$47 million
$96 million
$123 million
$169 million
$200 million
$230 million
$200 million
$225 million
Top 5 Company Holdings
160%
140%
139%
120%
Citigroup
Bank of America
100%
J.P. Morgan
80%
Wells Fargo
60%
Morgan Stanley
Fee Schedule
UIA Defensive Growth Strategy Using Preferred Securities and
Subordinated Debt (Gross returns)
Bank of America ML Core Fixed-rate Preferred Securities Index
$300,000 to $2 million
1.00%
Barclays Capital US Aggregate Index
$2 million to $5 million
0.75%
Over $5 million
0.50%
On April 1, 2002, Ulland Investment Advisors began offering the Defensive Growth style to a limited number of clients so that the style would be seasoned before being generally offered.
Performance is shown on a time-weighted basis as calculated in Axys portfolio software. Performance is presented gross of fees. Calculations are based on the reinvestment of dividends and
gains unless these amounts were paid out to the client. Employee accounts are included in performance figures. Performance does include positions where clients requested that certain
securities be allowed to exceed 10% of the portfolio’s value. It should not be assumed that recommendations made in the future will be profitable or will equal the performance shown above.
Portfolio holdings and asset allocation are subject to change at any time and are different based on client preferences.
Ulland Investment Advisors  4550 IDS Center  80 South Eighth Street  Minneapolis, MN 55402
Tel: 612.312.1400  www.ullandinvestment.com  Contact: [email protected]
Ulland Investment Advisors, Inc.
Defensive Growth Strategy Using Preferred Securities and Subordinated Debt
A Compelling Solution for Today’s Low Yield Environment
For Period Ending 7/31/2016
Current Yield
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
6.75%
3.66%
3.14%
1.45%
Ulland Defensive Growth 10 Year BBB Corporate
Bond
10 Year BBB US
Municipal Bond
10 Year US Treasury
Preferred and hybrid securities have maintained their yield advantage over
traditional fixed income investments like US Treasuries and corporate bonds
Historical Current Yield
9.00%
8.00%
7.00%
6.00%
5.00%
Current
spread
361 bps
4.00%
Current
spread
530 bps
3.00%
2.00%
1.00%
0.00%
UIA Defensive Growth Strategy Using Preferred Securities and Subordinated Debt
Yield on composite 10-year BBB US$ corporate bond
Yield on US 10-year Treasury
Ulland Investment Advisors  4550 IDS Center  80 South Eighth Street  Minneapolis, MN 55402
Tel: 612.312.1400  www.ullandinvestment.com  Contact: [email protected]