Western Financial Corporation offers a number of distinct, active and passively managed equity and fixed income strategies for client portfolios. The strategies are structured to assist our clients in achieving their goals within their specific investment phase; wealth accumulation, wealth preservation or income distribution.
Mid-Large Cap Growth
This actively-managed, diversified strategy seeks long-term capital appreciation by investing in mid-to-large capitalization companies which are typically exhibiting strong earnings and revenue growth, have new products or services, or a new management team, or other fundamental change causing an acceleration of earnings and revenues, have strong balance sheets and positive relative price performance.
Mid-Large Cap Growth and Income
This actively-managed, diversified strategy seeks to provide total return (current income plus long-term capital appreciation) by investing in mid-to-large capitalization companies which have been determined to be undervalued relative to their intrinsic value, have attractive, sustainable dividend yields and have demonstrated long-term dividend growth, strong balance sheets and are experiencing positive fundamental change.
Mid-Large Cap Blend
This actively managed, diversified strategy seeks to provide both long-term capital appreciation and income from dividends by selecting the best companies from both the Mid-Large Cap Growth and Mid-Large Cap Growth and Income strategies.
Micro Cap Financial Institutions Portfolio
This actively managed strategy seeks to invest in small, community-based financial institutions. Companies are selected based upon asset and liability growth, loan portfolio quality, return on average assets (ROAA) and return on average equity (ROAE), quality of management and valuation metrics including price-to-earnings and price-to-tangible book value. Additional considerations include peer group comparisons and estimates of “take-out” values.
This passively managed, diversified strategy seeks to provide multi-cap risk-adjusted exposure to non-U.S. equity markets through the use of exchange traded funds (ETFs). The primary focus of the strategy is long-term capital appreciation and portfolio diversification. Current income is secondary.
Target Allocation Portfolios
WFC also offers its clients, passively managed portfolios using exchange traded funds (ETFs) exclusively. The Target Allocation Portfolios are designed to allocate client accounts to specific target asset classes and percentages while providing broad diversification and control over risk and reward potential.
Fixed Income Strategies:
Taxable Fixed Income:
This diversified strategy typically consists of a conservative blend of taxable, high quality corporate and U.S. Government bonds and taxable municipal bonds and is designed to provide reliable current income with a relatively low level of risk. Portfolios are generally constructed using a laddered strategy approach. Fixed income investments are typically considered to be less risky than equity investments as they historically have had a lower standard deviation but have also typically provided lower returns. Enhanced income strategies may also be applied by including preferred shares, convertible bonds, non-investment grade (junk) bonds and fixed income exchange traded funds (ETFs).
Tax-Free Fixed Income:
This diversified strategy primarily seeks to provide reliable current income that is generally exempt from U.S. federal income tax, and in some cases, state, and/or local income tax. Investments include a blend of high quality, liquid municipal fixed income securities which may or may not be insured. Portfolios are generally constructed using a laddered strategy approach. Enhanced income strategies may also be applied by including non-investment grade or non-rated bonds and tax-free fixed income exchange traded funds (ETFs). This strategy is designed for tax sensitive investors.