The Davenport Balanced Fund is intended to provide a lower volatility investment option focused on balancing current income with long-term moderate capital appreciation.
- Balance between current income and long-term moderate capital appreciation
Equity Investment Themes
- Dividend Aristocrats: High quality business with track records of maintaining and increasing dividends
- High Yielders with Capital Appreciation Potential: Above-average dividend yields and potential growth
- Contrarian/Special Situations: Deep values, distressed stocks with temporary headwinds
Fixed Income Investment Themes
- Emphasis on quality – focus on investment grade corporate bonds and fixed income exchange traded funds (ETFs).
- High Income in the context of a laddered investment grade portfolio
- Portfolio Stability – fixed portion designed to dampen overall price volatility during periods of equity market weakness.
Fixed Income Diversification
- Fixed positions typically diversified by maturity and sector weightings based on economic trends and sector valuations, with the goal of controlling credit and maturity exposure.
- The portfolio typically owns 45-55 stocks
- Position sizes typically start in the 1-2% range
- Broad sector diversification
- Low portfolio turnover
- Tend to avoid significant balance sheet or business risk
- Valuation sensitive with focus on margin of safety embedded in purchase price
- Setting upside and downside price targets for all positions
- Typically close to fully invested
- Regular rebalancing to maintain targeted balance between equity and fixed income holdings
Investment Policy Committee
Investment Policy Committee
Investors should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. The Fund’s prospectus and summary prospectus contain this and other important information, should be read carefully before investing or sending money, and may be obtained from your Investment Executive, www.investdavenport.com, or by calling (888) 285-1863.
Distributed by Ultimus Fund Distributors, LLC
Risk Considerations: Investments in debt instruments may decline in value as the result of declines in the credit quality of the issuer, borrower, counterparty, or other entity responsible for payment, underlying collateral, or changes in economic, political, issuer-specific, or other conditions. Certain types of debt instruments can be more sensitive to these factors and therefore more volatile. In addition, debt instruments entail interest rate risk (as interest rates rise, prices usually fall), therefore the Fund’s share price may decline during rising rates. Funds that consist of debt instruments with longer durations are generally more sensitive to a rise in interest rates than those with shorter durations. Investments in below investment grade quality debt instruments can be more volatile and have greater risk of default, or already be in default, than higher-quality debt instruments. Investments in municipal instruments can be volatile and significantly affected.