Preferred Income + Index Income
Separately Managed Account | Inception Date: 07/01/2016
The Preferred Income strategy seeks current income as its primary objective. The portfolio invests in a wide variety of preferred stocks that display high, steady, and consistent income. The strategy also seeks monthly cash flow from option premiums through a long-term, time-decay, premium-capture approach utilizing put-credit spread on the S&P 500 Index or similar exchange-traded funds (ETFs).
Strategy Highlights
Seeks potential income from higher-yielding preferred stocks and capital securities, some of which may be U.S. tax advantaged.
Active management of this SMA to potentially exploit inefficiencies such as credit quality, interest rate structure and call risk.
Diversification from traditional equity and fixed income strategies.
The overlay targets cash flow generation for increased returns in exchange for additional market volatility.
Portfolio Management Team
JR Humphreys, CFA, CAIA
Senior Portfolio Manager
Tom Kaiser, CFA, CPA
Portfolio Manager, Research Analyst
Nathan Harshman
Senior Equities & Derivatives Trader