Portfolio Management
- 1. Portfolio Management Program Colvert/Harvey Group Personalized investment management Mission statement and investment approach Mission statement similarly to the way one might rank sports teams— If anything truly defines the Colvert/Harvey Group, it is how well the teams perform against their opponents. the passion we have for helping our clients achieve their The more games, matches or races won, the higher the financial goals and personal aspirations. Providing the ranking. We believe the same method should be best possible service is our highest mission and through implemented in investment management. An that we have an uncompromising determination to excellent way to implement this strategy is by using protect and grow our client’s assets. exchange traded funds (ETFs) and closed-end funds (CEFs). We utilize these funds in our portfolios when Investment approach we can because of their tax-efficient nature and low Building upon nearly a half century of combined cost. experience, we meticulously craft and manage unique custom portfolios that seamlessly harmonize with the personal needs of our clients. Portfolio Managers • Hank Colvert Our investment management process is exclusive to Senior Portfolio Manager the Colvert/Harvey Group and we take the greatest Portfolio Management Program care and time to understand our clients’ investment • Brad Harvey, CIMA®, CFP® objectives (cash flow requirements, time horizons and Senior Portfolio Manager Portfolio Management Program risk tolerances). We then actively manage portfolios to • Brian Colvert meet these personal goals. As part of this process, we Financial Advisor continually review research and information from third- party providers as well as UBS sources. About the UBS Portfolio Management Program (PMP) Due to the inherent volatility in investments, we constantly analyze market conditions. As a result, we Keeping abreast of the ever-changing global economy strive to maintain portfolios that are very nimble in and world capital markets is more than a full-time job, nature, allowing us to make changes when necessary. particularly in the current environment. Few individual Our portfolios are constructed using two main investors have the time, technical expertise or analytical components: strategic (long term) and tactical (short resources to stay on top of a portfolio of investments. term). The strategic component contains a relatively stable mix of traditional asset classes, while the tactical For clients who prefer to delegate the day-to-day component utilizes a relative strength ranking method management of their assets to a Financial Advisor, comprised of six major asset classes (fixed income, U.S. UBS offers a personalized investment service, backed equities, international equities, commodities, currency and by the firm’s extensive global resources. cash). As a PMP client, you will establish a one-on-one This type of construction evaluates the supply and demand relationship with your personal portfolio manager, forces of particular asset classes and ranks the asset who is experienced in designing and executing classes from strongest to weakest based upon relative customized investment strategies. strength. We feel that asset classes can be ranked
- 2. Investment strategies Fixed Income Portfolio Objective The fixed income portfolio caters to the investor who is solely interested in interest and dividends; essentially, it is a conservative portfolio with minimal market risk. Key facts Asset Class/Market Cap: Geographic Exposure: Benchmark: Fixed Income Securities Global Barclays Capital Government Credit Investment strategy Our fixed income portfolio can use income focused ETFs as well as closed-end and open-end mutual funds with underlying investments in treasuries, bonds, preferred stocks and other income focused securities. The investments are screened and incorporated into the portfolio using a relative strength, quantitative model that is designed to generate income only. There is no growth objective in this strategy. Conservative Portfolio Objective The objective of our conservative portfolio is to create a portfolio that produces current income with the ability to grow through asset appreciation with less volatility. This is a good choice for the investor whose aim is to preserve capital while still having potential exposure to other asset classes. Key facts Asset Class/Market Cap: Geographic Exposure: Benchmark: All Classes/All Market Cap Global 30% MSCI World 70% Barclays Capital Government Credit Investment strategy The conservative portfolio contains a core portion of assets invested according to long-term strategic fixed income allocations that seldom change and a smaller component of assets that are determined according to which asset classes are in or out of favor for the given point in the economic cycle.
- 3. Moderate Portfolio Objective This portfolio balances a growth objective coupled with wealth preservation. The moderate portfolio is for the investor who wants to grow their current wealth while managing their risk of loss. Key facts Asset Class/Market Cap: Geographic Exposure: Benchmark: All Classes/All Market Cap Global 60% MSCI World 40% Barclays Capital Government Credit Investment strategy With our moderate portfolios we employ a process that allows the composition of the investment strategy to change over time. The process is designed to adapt to the market just as we adapt our wardrobe to the changing seasons. Looking at the same asset classes we do with our aggressive portfolios, we seek the best balance of growth and risk aversion; it is a robust and adaptive strategy. Aggressive Portfolio Objective This portfolio best suits the investor who has a higher tolerance for risk and who hopes to grow their investments quickly. Our aggressive portfolio is designed to be nimble and to take advantage of unique opportunities in the market. Key facts Asset Class/Market Cap: Geographic Exposure: Benchmark: All Classes/All Market Cap Global 80% MSCI World 20% Barclays Capital Government Credit Investment strategy Our investment strategy for the aggressive portfolio is to closely monitor fixed income, U.S. equities, international equities, commodities, currency and cash on a daily basis and to swiftly make decisions to maximize returns. We look for strengths in these six asset classes and utilize the top two to implement this portfolio
- 4. Access to unparalleled global resources with the attention you deserve Through the UBS Portfolio Management Program, the Colvert/Harvey Group has access to multiple sources of world-class investment research: • UBS Wealth Management Research—independent-minded analysis tailored for individual investors • UBS Investment Research—institutional-quality securities research from the UBS Investment Bank • Third-party research—in-depth research from third-party sources These resources help to inform the investment decisions in your portfolio and provide extensive coverage of industry, regional, national and international economic trends. The Colvert/Harvey Group is backed by the analytical tools and operational excellence needed to support the construction and execution of a custom-tailored portfolio. PMP is a wrap fee advisory program in which our Financial Advisors manage client accounts on a discretionary basis. PMP is designed for clients who (i) want to delegate portfolio management discretion to their Financial Advisor; (ii) are looking to implement a medium ©2011 UBS Financial Services Inc. All rights reserved. Member SIPC. All other trademarks, registered trademarks, to long-term investment plan; and (iii) prefer the consistency of fee-based pricing. PMP is not appropriate for clients who: (i) want to maintain trading control over their account; (ii) seek a short-term investment; (iii) want to maintain consistently high levels of cash, money market funds, or invest primarily in no-load mutual funds; (iv) want to maintain highly concentrated positions that will not be sold regardless of market conditions; or (v) who anticipate significant withdrawals from the account. It is important that you understand the ways in which we conduct business and the applicable laws and regulations that govern us. As a firm providing wealth management services to clients, we are registered with the U.S. Securities and Exchange Commission (SEC) as an investment adviser and a broker-dealer, offering both investment advisory and brokerage services. Though there are similarities among these services, the investment advisory programs and brokerage accounts we offer are separate and distinct, differ in material ways and are governed by different laws and separate contracts. It is important that you carefully read the agreements and disclosures that we provide to you about the products or services we offer. While we strive to ensure the nature of our services is clear in the materials we publish, if at any time you seek clarification on the nature of your accounts or the services you receive, please speak with your Financial Advisor. service marks and registered service marks are of their respective companies. Two sources of research are available to UBS Financial Services Inc. clients. One source is written by UBS Wealth Management Research (“WMR”). WMR is part of UBS Global Wealth Management & Business Banking (the UBS business group that includes, among others, UBS Financial Services Inc. and UBS International Inc.), whose primary business focus is individual investors (“Private Clients”). The other source is written by UBS Investment Research. UBS Investment Research is part of UBS Investment Bank, whose primary business focus is institutional investors. The Private Client report style, length and content is designed to be more easily used by Private Clients. Because both sources of information are independent of one another and reflect the different assumptions, views and analytical methods of the analysts who prepared them, there may exist a difference of opinions between the two sources. Neither the Institutional report nor the Private Client report is necessarily more reliable than the other. The various research content provided does not take into account the unique investment objectives, financial situation or particular needs of any specific individual investor. If you have any questions, please contact The Colvert/Harvey Group. UBS Wealth Management Research is provided by UBS Financial Services Inc. and UBS AG. For more information, please visit our website at ubs.com/team/ColvertHarveyGroup. The Colvert/Harvey Group 100601-2200 UBS Financial Services Inc. UBS Financial Services Inc. is a subsidiary of UBS AG. 90 S. Cascade Ave., Suite 900 Colorado Springs, CO 80903 719-520-3650 ubs.com/team/ColvertHarveyGroup