Universal Capital Wealth Management (UCWM) Advisory Portfolio is a tactical allocation portfolio designed to help investors participate in market gains while aiming to reduce downside risk during periods of significant market decline. The strategy blends exposure to The Standard & Poor’s 500 Index* and Fixed Income investments, aiming to deliver balanced performance through varying market conditions.
Key Features:
- Three Diversified Portfolio Options
We offer three asset allocation portfolios: Conservative, Moderate to Growth. Each of these
portfolios tailored to your personal risk tolerance and investment objectives. - Automatic Portfolio Rebalancing
Your portfolio is regularly rebalanced to maintain alignment with your selected investment strategy—so you stay on track without the hassle. - Comprehensive Account Access
Gain full visibility into your financial life through an all-in-one LPL Financial website. View your Advisory Portfolio holdings, monitor performance, and even link and track outside accounts for a complete financial picture.
Our Objective:
The objective of the Advisory Portfolio is to capture equity gains in rising markets while seeking to minimize losses during significant market downturns. This is achieved by constructing a diversified portfolio of equity and fixed income strategically allocated to balance growth potential with risk management.
What We Offer
UCWM offers a discretionary tactical allocation portfolio designed to align with your unique risk tolerance and investment objectives. The asset allocation of the portfolio will be managed by an Investment Advisory Representative (IAR) implementing a strategy to help control risk and enhance returns based on the IAR’s discretion.
Depending on how much equity risk you would like to have in your portfolio, we offer three asset allocation portfolios to choose from:
- Conservative Portfolio:
We may invest up to 30% in Equities and up to 100% in Fixed Income or Cash.
o Equity Allocation: 0–30%
o Fixed Income Allocation: 0–100%
o Cash Allocation: 0–100%
2. Moderate Portfolio:
We may invest up to 70% in Equities and up to 100% in Fixed Income or Cash.
o Equity Allocation: 0–70%
o Fixed Income Allocation: 0–100%
o Cash Allocation: 0–100%
3. Growth Portfolio:
We may invest up to 100% in Equities and up to 100% in Fixed Income or Cash.
o Equity Allocation: 0–100%
o Fixed Income Allocation: 0–100%
o Cash Allocation: 0–100%
Your portfolio’s asset allocation at the time of your initial investment will reflect your selected risk profile. Over time, the allocation may vary at the discretion of your Investment Advisor Representative, based on evolving market conditions, strategic opportunities, or shifts in your financial goals.
Dynamic Allocation Approach
Portfolio holdings are actively monitored and adjusted as needed. Depending on the prevailing market conditions, we may allocate up to 100% of the portfolio into fixed income or cash. Similarly, equity exposures weights may differ from the baseline allocations.
We tactically manage portfolios by increasing allocations to markets and sectors we believe offer greater opportunities and reduce the exposure to areas of higher risk. These tactical decisions are reversible and will be adjusted as opportunities and risks evolve.
How We Do It
The equity portion of your Advisory Portfolio is primarily invested in ETFs that track the S&P 500, providing broad exposure to large-cap U.S. equities. However, depending on the timing of your initial investment, your equity allocation may differ from other portfolio holders in a similar strategy group. The allocation and proportion of ETF holdings are determined with our discretion and may vary over time.
To promote diversification, we may select ETFs that invest in large, well-established companies with global operations and revenue streams—offering exposure not just to the U.S. economy but to global markets as well.
The fixed income portion of the portfolio is allocated among a combination of:
- Fixed income ETFs
- Money market mutual funds
- Cash or cash equivalents
This multi-layered approach is designed to balance growth potential with risk management, adapting to market changes while keeping your long-term objectives in focus.
Downside Protection Strategy
To help mitigate the impact of significant market declines, we may execute sell transactions based on our assessment of current market conditions. These decisions are made at the discretion of your Investment Advisor Representative (IAR) and are intended to reduce downside exposure during periods of heightened volatility.
Re-entry into the market—through the repurchase of the equity and fixed income holdings—will be based on our outlook for the market and the broader investment environment.
Implementing the tactical allocation portfolio investment does not ensure a profit nor guarantee against loss. Portfolio may be rebalanced to help control risk and enhance returns based on the IAR’s discretion.
Investment Risks:
Investing in equities involves inherited risks such as market fluctuation and capital loss, influenced by company’s earnings and business forecast, market volatility, market sentiment, overall economic conditions, global events, inflation, interest rate, currency, liquidity, political and regulatory risks.
Fixed income investments are subject to credit and interest rate risk. The Fund’s share price and yield will be affected by interest rate movements, with bond prices generally moving in the opposite direction from interest rates. Credit Risk refers to the bond issuers and senior loan issuer’s ability to make timely payments of principal and interest. High-Yield Securities, or “junk bonds”, are rated lower than investment-grade bonds because there is a greater possibility that the issuer may be unable to make interest and principal payments on those securities.
Past performance has no guarantee of future results. An investor should consider the investment objectives, risks, charges and expenses of the Fund(s) carefully before investing. To request a free copy of the ETFs or Funds prospectus, which contains this and more information, email to info@universalcapital.com or call 818-242-8242. Please read the prospectus carefully before investing.
Implementing the tactical allocation portfolio investment strategy does not ensure profit nor guarantee against loss. There is a risk of loss from an investment in securities, including the risk of loss of principal. Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.
*The Standard & Poor’s 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.