3-Bucket Strategy

A Disciplined, Multi-Sleeve UMA Approach

The 3-Bucket investment strategy is based on a structured allocation framework consisting of three distinct portfolios—Conservative, Moderate, and Aggressive—each designed to align with an investor’s individual risk tolerance and investment objectives. The strategy is available in two versions: one designed for qualified accounts and another for non-qualified (taxable) accounts. An investor’s risk assessment helps guide how assets are distributed across these three sleeves.

This strategy is periodically monitored and rebalanced to help maintain alignment with the investor’s selected risk profile and long-term investment objectives. Adjustments may be made in response to changing market conditions or portfolio drift.

Bucket #1: Conservative Allocation

The Conservative Bucket emphasizes capital preservation and income generation. Investments may include:

U.S. Treasury securities and Treasury Inflation-Protected Securities (TIPS)
High-quality corporate bonds
Collateralized Loan Obligations (CLOs)
Floating-rate notes (FRNs), bank loans, and mortgage-backed securities (MBS)

This portion of the portfolio is designed to help reduce overall portfolio volatility and provide a steadier income stream, though returns and principal value may fluctuate.

Bucket #2: Moderate Allocation

The Moderate Bucket seeks a balanced approach between income and growth potential. Typical characteristics may include:

Exposure to medium-duration, investment-grade fixed income securities
Limited exposure to short-duration, below-investment-grade securities
Equity holdings that may include large-cap value companies with established earnings and dividend histories

This allocation is intended to provide balanced risk exposure and moderate return potential consistent with long-term objectives.

Bucket #3: Aggressive Allocation

The Aggressive Bucket focuses on long-term capital appreciation and may include:

Equities emphasizing growth-oriented or higher-beta companies
Longer-duration fixed income securities and broader credit exposure, including high-yield bonds

This allocation involves higher levels of risk and volatility and may not be appropriate for all investors.

Implementation and Oversight

The 3-Bucket Strategy is implemented within a Unified Managed Account (UMA) structure, which provides:

Optional professional asset management from multiple third-party managers for qualifying accounts
Diversification across a broad range of asset classes and investment styles
Optional tax-aware portfolio management, particularly relevant for taxable accounts

Please note: Each bucket description reflects general allocation objectives. Actual asset classes, investment styles, and securities may vary based on the discretion of portfolio managers, prevailing market conditions, and an investor’s individual profile.

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Disclosures:

The 3-Bucket Strategy is designed for investors with varying time horizons and risk tolerances, but it may not be suitable for all individuals.
Diversification and asset allocation do not ensure a profit or protect against a loss in declining markets.
All investments carry risk, including loss of principal.
Momentum or growth investing may amplify losses in volatile or declining markets.
Fixed income investments are subject to interest rate, credit, and inflation risks.
International investments may involve additional risks such as currency fluctuations and political or economic instability.
Hedging strategies may involve costs and may not be effective under all market conditions.
Past performance of any investment - stocks, bonds, mutual funds, or ETFs is not a guarantee of future results

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