Valad Income Portfolio (VIP)

Beginning in 2021, VPIA® began to offer its VIP approach to replace the 40% portion of the traditional 60/40 (equity/bond) portfolio and address the concern raised by some Clients and potential Clients about increased Safety coupled with Income. The VIP concept allows the Client to decide to go with an Income/Safety, instead of an Equity, approach by combining the Safety of Treasuries with Income and Risks from Dividend/Distribution Equities. For example if a Client had $10,000,000 to be invested in a VIP, the Client would be asked to decide on an allocation between Treasuries and Dividend/Distribution Equities that provided the Client with the appropriate amount of Safety. In the first year of so of offering the VIP concept, this meant allocating a portion of the Client’s account to Treasuries earning less than .25%. Thus, if the Client allocated 50% to Treasuries, the Return would have to come almost entirely from the Dividend / Distribution Equities. As of the beginning of 2023, Treasuries are returning in excess of 4%. While the VIP Equities providing Dividends/Distributions in the view of VPIA® should have more Risk than the S&P 500, when combined with as little as 40% in US Treasuries it is the opinion of VPIA® that the overall Risk is less than that of the S&P 500. While coupled with a 40% to 60% Treasury allocation, VPIA® uses its VIP approach to replace the 40% portion of the traditional 40/60 (equity/bond) portfolio concept for Clients interested in increased Safety above that of the SP 500 with overall Returns comparable to the Vanguard Total Bond Market Index Fund ETF (BND). It is the opinion of VPIA® that the VIP concept provides increased Safety and increased Returns when compared to the BND.