MAI Investment Management provides targeted investment solutions to financial advisors. Investment solutions include the MAI Managed Volatility Strategy, developed in April 2009 and the MAI Energy Infrastructure & MLP Strategy, developed in December 2009. MAI Investment Management is a division of MAI Capital Management, LLC, an SEC registered investment advisor.
MAI developed the MAI Managed Volatility Strategy, a risk-managed liquid alternative, specifically to lower portfolio volatility. The Managed Volatility Strategy employs a unique approach to options. The firm starts with a portfolio of stocks that consistently pay and are capable of growing dividends. To generate option premium cash flow, it then sells puts (cash-secured) and calls (covered) around each stock. The portfolio also has a cash component and uses no leverage. As of December 31, 2017 our Managed Volatility Strategy had $203 million under management.
The MAI Energy Infrastructure & MLP Strategy was developed to seek attractive risk-adjusted total returns with relatively low correlation to equities and most other asset classes. MAI focuses on midstream companies with long-term fixed contracts to deliver energy. We have a nimble approach to management, through both format flexibility and liquidity, which we believe can be a significant advantage when investing in the U.S. Energy Renaissance. As of December 31, 2017 the MLP Strategy Composite had $12 million under management.