OUR PROCESS

Using an investment approach that is rooted in science and not speculation requires significant discipline both in building and managing a portfolio.

At Universal Advisory Services, we believe that there are three critical components to the portfolio construction and management process:

  1. Asset Allocation » Asset allocation is the process of deciding the appropriate weightings of different asset classes within a portfolio, each of which is designed to capture a specific risk/reward characteristic. The asset allocation decision is the most important decision an investor will make, as more than 90% of a portfolio’s return is attributable to this singularly important decision.

    Because individual’s risk tolerances, time horizons, and return needs vary, there is not a single, optimal allocation for all investors. Effective asset allocation allows you to optimize your portfolio and target a specific risk/return profile that matches your goals and objectives.
  2. Implementation/Trading » When choosing investments at Universal Advisory Services, our primary focus is on finding investments that will provide accurate asset-class exposure at the lowest cost and greatest tax efficiency. With this in mind, we use three primary types of investments in our clients’ portfolios:
    • Institutional Class Mutual Funds
    • Exchange-Traded Funds
    • Individual Bonds
    We believe that trading efficiently also adds a significant benefit to a client’s portfolio. Unnecessary trading detracts from investment returns and increases tax liabilities.
  3. Rebalancing » Rebalancing is the process of reallocating assets back their predetermined target weightings. By understanding the risk characteristics of each asset in a client’s portfolio we are able to place tolerance bands around a targeted allocation that allows for natural fluctuation but maintains the risk/reward profile. Therefore rebalancing is risk-based, not time-based.

Find out about the different services we offer that employ this process.