The MAI Managed Volatility Strategy is a risk-managed liquid alternative that combines a portfolio of dividend growing stocks and an option overlay strategy that produces durable portfolio income and can potentially lower portfolio volatility.
The MAI Managed Volatility Strategy with options overlay is distinguished by:
1. Multiple Sources of Performance
- Option premium cash flow from selling calls and puts
- Stock appreciation potential
- Dividend income
2. Actively Managed Options Overlay
To increase portfolio cash flow and lower the volatility of its underlying equity portfolio, the Strategy writes multiple, short duration (≤9 weeks) contracts on individual stocks owned in the strategy.
3. Dividend Growing Equities1
The evidence demonstrates that dividend growers produce stronger long-term performance. History also has shown that not only do dividend growers outperform over a market cycle, but they generally do it with less volatility.
4. Durable Portfolio Income
We believe that the option writing component and individual equity dividend yield can produce durable and predictable cash flow to the portfolio.
5. No Concentrated Bets
The Managed Volatility Strategy is diversified and has no embedded interest rate bets.
1 Source: Ned Davis Research, 12/31/12. Past performance does not guarantee future results, which may vary.
Additional Strategy Information:
For more information on our Managed Volatility Strategy contact: Erik Huss or Riley Rindo