The Parametric Enhanced Income strategy is a separate account offering consisting of a diversified portfolio of closed-end funds and ETFs. The objective of the strategy is to provide a high level of current income, with capital appreciation as a secondary objective. Closed-end funds represent a unique market segment offering investors current income, attractive risk-adjusted returns, and portfolio diversification.
In managing our Enhanced Income portfolios, we attempt to reduce risk by diversifying by asset class, investment strategy, and manager. We rank funds based on dividend yield, discount to NAV, volatility relative to peers, and dividend stability. We avoid funds that are illiquid, use excessive leverage, have poor average credit quality, or have incepted within 12 months. A tax-advantaged version, which utilizes municipal bonds and tax-managed equities, is available for taxable investors.
Key Benefits
By Providing... You May Achieve...
Attractive income potential Fund distributions can be reinvested or a custom withdrawal program can be set up according to the income needs of the client
Diversification Portfolio construction seeks to diversify risks in closed-end funds by asset class, by strategy, and by manager
Professional Management A disciplined investment process for managing the portfolio over time, which takes advantage of Parametric’s separate account technology
Return Enhancement Investment in discounted shares seeks to enhance returns and provide downside protection
