TCVA Core Equity Strategy Portfolio

Investor Profile:

• Hybrid investor strategy combining both large cap growth and value styles
• Preference for broad based indexed diversification
• Client risk tolerance comparable to market returns
• Typically pay dividends
• Cost effective and capital gains management
• Appropriate for any size or type of account

Description:

The TCVA Core Strategy is designed to provide a higher level of diversification that was previously achieved through Mutual Funds.  Through the use of Exchange Traded Funds (a basket of stocks which tracks a specific market index/sector), the portfolio has exposure to all sectors of the S&P500 as well as Small and Mid-Cap, Real Estate, International and Emerging markets and Commodities.  However, this particular strategy is a hybrid, combining Large Cap Value and Large Cap Growth in its exposure to the individual S&P sectors.  The Large Cap sector is made up of top rated ETFs that provide full exposure to the S&P 500 broken out into individual sectors. This allows our investment team to enhance returns by adjusting sector exposure and asset class weightings to take advantage of changing market conditions, the same way we determine weighting in our other strategies.  This optimizes diversification for our clients, as well as providing active management from our investment team. Because the ETFs take advantage of all the stocks that make up the S&P 500, it is considered more of a Core Investing strategy; some holdings are the same names we use in our Value Strategy, while others are considered more growth oriented. Therefore, the client has a wider range of exposure across Large Cap names.  By using high quality, low cost ETFs, we are able to provide a level of active management and higher diversification, for a lower cost than a typical passively managed mutual fund. Through the use of ETFs, we are also able to keep transaction costs and capital gains lower. The Core model can be effective in any size account that is sensitive to capital gains or would like a more Core Investment approach.  Returns are enhanced by adjusting the sector and asset class weightings to take advantage of changing market conditions.