DIVIDEND & INCOME
Investor Profile
An investor in this strategy either is in need of periodic income generated by the strategy or has a preference for investments that distribute income. In either case, the investor also needs or desires growth in the strategy to meet future income goals and to protect against inflation.
Strategy Objective
The strategy is positioned to provide steady income to investors while also generating some capital appreciation to help meet future income needs. The target distribution rate is over four percent. The strategy benchmark is 30% Russell 1000 Value Index, 20% MSCI ACWI ex US Index, 10% Bloomberg Barclays US Corporate High Yield Total Return Index Unhedged, 20% Chicago Board Options Exchange S&P 500 BuyWrite Monthly Index, 10% Bloomberg Barclays US Agg Total Return Unhedged Index, 10% Bloomberg Barclays Emerging Market USD Aggregate Total Return.
Strategy Characteristics
The strategy will consist of a mix of equity funds, fixed income funds or funds that combine equity and debt. The equity managers selected will tend to be more value oriented and hold stocks that pay higher than average dividends. The portfolio will have investments in a wide variety of regions and/or sectors. International investments, smaller capitalization stocks, higher yielding fixed income, MLP’s, REIT’s, Preferred Equity and covered call funds will be utilized by the strategy to provide higher income and diversification benefits.
Strategy Process
A wide variety of managers are screened for this strategy. Managers selected can range from large broad growth and income funds that cover many different parts of the investment universe to smaller more focused managers that concentrate on a specific sector of the market. We seek managers that have well thought out coherent approaches to investing and have proven to be good investors over time. Manager strategy and performance is monitored both for funds within the strategy and select funds we are contemplating adding to the strategy.
Tactical asset allocation between managers is utilized in an attempt to enhance returns. Tactical asset allocation is derived from significant internal research of economic and financial data. We also utilize third party research to help formulate our approach to tactical asset allocation.
Tactical asset allocation between managers is utilized in an attempt to enhance returns. Tactical asset allocation is derived from significant internal research of economic and financial data. We also utilize third party research to help formulate our approach to tactical asset allocation.
*The investment(s) discussed may not be suitable for all investors. Investors should make investment decisions based on their own specific investment objectives and financial circumstances.
**Additional information is available upon request.
***Any investment contains risk, including the risk of total loss, fluctuating prices and uncertain returns.
**Additional information is available upon request.
***Any investment contains risk, including the risk of total loss, fluctuating prices and uncertain returns.