Strategies

strategies

 


Disciplined Value

cropped-Logo-only-maroon1.pngHigh-quality, discounted businesses across all capitalizations

Our approach to value investing focuses on owning shares of high-quality, deeply discounted businesses. 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 reflect a significant discount to fair value.

Enhanced Income

cropped-Logo-only-maroon1.pngHigh level of income through the most attractive risk-adjusted opportunities

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 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.

Global

cropped-Logo-only-maroon1.pngValue-tilted exposure to both international and domestic markets

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.

Disciplined Growth

cropped-Logo-only-maroon1.pngLarge-cap growth companies with strong fundamentals at ideal entry points

Growth characteristics are one of acceleration, change and improving fundamentals. Our proprietary analysis looks for intrinsic markers that 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.

Core Plus Fixed Income

cropped-Logo-only-maroon1.pngExposure to all fixed income classes through bottom-up security selection

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.

Traditional Fixed Income

cropped-Logo-only-maroon1.pngMunicipal or corporate portfolio tailored to each clients’ specific needs

For investors seeking to preserve capital and generate income, we offer traditional bond portfolios consisting of only 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.