We offer investment strategies that seek to generate a high level of
current income by investing in closed-end funds.
Each investment strategy utilizes our proprietary valuation scoring methodology to rotate amongst the cheapest closed-end funds.
Managed Municipal Bond
Seeks to provide a high level of after-tax income, reduce the risk of dividend cuts, manage duration and credit risk, and attempt to maximize the underlying performance of the municipal bond exposure.
Dynamic Fixed Income
Investment Grade | High Yield | Municipal Bonds | Emerging Market Debt
Seeks to rotate amongst closed-end bond funds deemed cheapest in the four different asset classes that pay a high distribution yield and displays the highest projected relative total return.
Fixed Income Risk Parity
Emering Market Debt | Municipal Bonds
Seeks to take advantage of the two fixed income asset classes that we believe have the most aggressive exposure to risky assets, and the most defensive exposure. Strategy will be tilted dynamically based on interest-rate, US dollar, and risky asset outlooks.
Diversified Tax-Sensitive Income
Municipal Bonds | Covered Call Equity | Foreign Securities | MLP’s
Seeks to invest in three to five of the largest closed-end fund sectors that are known for producing tax-free or tax-sensitive dividends to investors.
In addition to the direct investment strategies, we offer the following customizations¹:
- • Leverage: Increase or decrease leverage by running a higher or lower average cash balance.
- • Sector Exposure: Less exposure to a single sector or factor by removing an asset class from the asset allocation, or a specific derivative can be used to isolate the risk from that one sector.
- • Sector Emphasis: One sector to be emphasized more than others to produce a higher or lower exposure to market risk or interest rates.
- • Interest Rate Risk: A more dynamic usage of interest rate derivatives to potentially hedge duration or interest rate risk so that the spread on the underlying sectors can be captured by the CEF.
- • Equity Market Risk: A more dynamic usage of equity derivatives to potentially hedge market drawdown risk.
- • State-Specific: Larger allocation to state-specific municipal bond closed-end funds to realize state tax exemption in addition to federal. (For New York or California residents only)
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¹Customization subject to custodian and account restrictions.
*There are risks inherent in any investment including the possible loss of principal. There can be no assurance that separate account objectives will be achieved. Closed-End Funds: Closed-end funds are traded on the secondary market through one of the stock exchanges. The Fund’s investment return and principal value will fluctuate so that an investor’s shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the fund’s portfolio. There is no assurance that a Fund will achieve its investment objective. Closed-End Fund Leverage: Leverage involves the use of loans, preferred shares or other financial instruments in an attempt to increase the yield, or return, of the portfolio. Leverage is a speculative technique that exposes a closed-end fund to greater risk and increased costs than if it were not used. The use o leverage may cause greater volatility in the level of a closed-end fund’s NAV, market price and distributions on its Common Shares. Leverage will also result in higher fees due to the closed-end fund manager because the amount of assets under management will be included in the closed-end funds Managed Assets. There can be no assurance that a closed-end fund will use leverage or that its levered strategy will be successful during any period in which it is employed. Past performance does not guarantee future results.