The diversified models are a collection of five fully diversified models across all asset classes and all risk objectives.

There are two versions of the diversified models: “ETF” or “Blend”. The ETF models hold Exchange Traded Funds, or “ETFs”. The Blend models hold a combination of stocks, ETFs, and mutual funds. Either version may be suitable for you depending on your unique circumstances. We will discuss that with you.

Anchor 10/90 - "Holding Your Position"

10% Equity / 90% Fixed Income, Commodities, Alternatives, and Cash **

Objective: Conservative (Principal Protection with Income)

Time Horizon: 1-3 Years

The Anchor model provides the most conservative option. It focuses on preservation of capital through a heavy weighting to fixed income and money market funds. This type of strategy is suitable for investors who want to protect their principal. Just like an anchor holds a boat steady.

   

True North 25/75 - "Steady As She Goes"

25% Equity / 75% Fixed Income, Commodities, Alternatives, and Cash **

Objective: Moderately Conservative (Moderate Growth + Income)

Time Horizon: 3-5 Years

The True North strategy is designed for moderate stability. It has a heavy weight to fixed income, but with a small bit of equity. Not so much though as to “alter course” when the market shifts one way or the other. This strategy is suitable for investors who seek a steady stream of income with moderate growth. Just like a boat heading in the same direction.

     

Oasis 50/50 - "Refuge from the Rigor"

50% Equity / 50% Fixed Income, Commodities, Alternatives, and Cash **

Objective: Moderate (Balanced Growth with Income)

Time Horizon: 5-10 Years

The Oasis model provides a balanced mix of equity and fixed income. This strategy is suitable for an average risk investor. The overall goal of this strategy is to provide both capital appreciation and income. In doing so, the idea is to provide a peaceful experience from both sides of the market, like an oasis provides peace in the midst of a desert.

     

Windward 75/25 - "Tactically Maneuvering"

75% Equity / 25% Fixed Income, Commodities, Alternatives, and Cash **

Objective: Moderately Aggressive (Moderate Growth)

Time Horizon: 10-15 Years

The Windward model is a growth model intended for those who prefer a little more risk.  But within reason so as not to “rock the boat”.  Given the added risk, someone in this strategy should expect to see volatility as the market shifts up and down.  But at the same time, the model will trade in and out of those shifts to attempt to compensate for the volatility.  Just like a sailboat zigs and zags into the wind on a “windward tack”.

     

Beacon 90/10 - "Longevity and Legacy"

90% Equity / 10% Fixed Income, Commodities, Alternatives, and Cash **

Objective: Aggressive Growth

Time Horizon: 15+ Years

The Beacon model is an aggressive growth strategy.  It offers the highest level of risk with a very long outlook.  The objective is appreciation of capital rather than principal protection or income generation. This strategy invests heavily in equity and will certainly experience volatility.  Just like a lighthouse which rests on the edge of a coastline and gets battered with anything Mother Nature throws at it.  But they always stand the test of time, always standing strong and tall as a beacon for mariners to “stay the course” and guide them home.

     

** Please note:

Equity, Fixed Income, Commodities, Alternatives and Cash are the “baseline” set of asset classes that the models MAY invest in. There may be times when more is invested in one asset class than another and there may be times when nothing is invested. Those decisions are at the discretion of the portfolio manager. But these five asset classes essentially provide a broad universe of the various options to choose from, however they are certainly not the only asset classes available. A full and comprehensive list of all available asset classes for the models is  shown here on the Morningstar Category Classifications List but again that list is not all-inclusive either. Tactical shifts may occur at any time in and out of any asset class at the discretion of the portfolio manager. Additional information on the various asset classes included in any of the models is available upon request at any time. Any position or asset class is subject to change at any time at the discretion of the portfolio manager and/or the Valor Investment Committee.

The Income models are partially diversified models for investors who seek current income with minimal risk to principal. This model targets yield first with the goal of providing passive income to the investor, usually in the form of dividends or interest income from bonds. There are two versions of the income models available:

In each Income model, equity is allocated to 8-10 large capitalization stocks that generally pay higher dividends than the benchmark average. Fixed income is allocated to mutual funds or Exchange Traded Funds in asset classes that focus on higher yield.

** Please note:

Equity, Fixed Income (FI), Commodities, Alternatives (Alts) and Cash are the “baseline” set of asset classes that the models MAY invest in.  There may be times when more is invested in one asset class than another and there may be times when nothing is invested. Those decisions are at the discretion of the portfolio manager. But these five asset classes essentially provide a broad universe of the various options to choose from, however they are certainly not the only asset classes available. A full and comprehensive list of all available asset classes for the models is shown here on the Morningstar Category Classifications List but again that list is not all-inclusive either.  Tactical shifts may occur at any time in and out of any asset class at the discretion of the portfolio manager. Additional information on the various asset classes included in any of the models is available upon request at any time. Any position or asset class is subject to change at any time at the discretion of the portfolio manager and/or the Valor Investment Committee. 

The stock models are intended for an investor who has an interest in a stock-only strategy.  Any of these models also offer the investor direct ownership of stocks. So, essentially there is no cost to own any of the positions in these models (versus an “expense ratio” on a mutual fund or ETF).

Each of the stock models consists of 25-35 stocks and is generally 95-99% invested (1-5% cash) at any given time.  Because of the stocks, each model is considered a very aggressive strategy, so anyone who invests in these models should expect to see volatility.  But not all volatility is the same.  For example, mid-cap stocks are typically more volatile than large-cap stocks, also known as “the blue chips”.  On the other hand, dividend paying stocks are usually the least volatile because they typically represent companies in more stable industries with predictable and steady cash flows. Such as utility and telecommunication companies.

Triumph: Large-Cap Stocks

Invests in companies with at least a $10 billion market capitalization. These are considered the “blue chip” stocks which are typically more conservative and recognized names in the industry.

Trident: Mid-Cap Stocks

Invests in companies in the range of $4-8 billion market capitalization. These are considered “mid cap” stocks which are usually more volatile than blue chip stocks.

Keystone: Dividend + Growth Stocks

Invests in companies with above average dividend yield. Valor targets a 4-5% dividend yield for the stocks in this model. Companies that pay a dividend in that range are typically in the utility, healthcare, and communication sectors.

Zenith: High Dividend Stocks

Invests in companies with above average dividend yield. Valor targets a 4-5% dividend yield for the stocks in this model. Companies that pay a dividend in that range are typically in the utility, healthcare, and communication sectors.