Enhanced Dividend Income Program

The Enhanced Dividend Income SMA is managed with a strong emphasis on owning blue-chip DOW 30 and S&P 100 components with historical dividend and earnings growth. We have observed that companies that are able to grow their dividend have historically outperformed the rest of the market, with
significantly less volatility.

We have designed the portfolio with the objective of achieving competitive returns when compared to broad market indices, while reducing volatility. This is accomplished by constructing an asset allocation that is relatively balanced among the traditional 10 S&P sectors so that we maintain sector neutrality.

The process starts by filtering the universe down by qualitative factors to find suitable candidates within each of the traditional S&P 500 sectors. Once we have reached a grouping of roughly 40-60 candidates, we approach the list with both fundamental and technical analysis to determine which candidates offer attractive risk to return over a 6-12 month period.

The Enhanced Dividend Income SMA deploys a relatively conservative, tactical, covered call overlay that is not obligated to continuously cover each individual equity position. When one of the underlying stocks demonstrate strength or an increase in implied volatility, CWP managers identify that
opportunity and sell call options tactically, rather than keeping all positions covered and limiting potential upside.

Yearly Returns