Preferred Income
The Preferred Income strategy seeks current income as its primary objective by owning a portfolio of preferred stock with an overall issuer investment-grade rating. Preferred stocks are a hybrid investment that combines features of equity and fixed income. Like a stock, most preferred stock pays a dividend that is taxed as a qualified dividend; however, like a bond, they are sensitive to interest rate movements and changes in credit quality.
Portfolio Managers
Tom Kaiser, CFA, CPA
Inception Date
Preferred Income SMA Strategy Highlights
Seeks potential income from higher-yielding preferred stocks and capital securities, some of which may be U.S. tax-advantaged.
Active management of this SMA to potentially exploit inefficiencies such as credit quality, interest rate structure and call risk.
Diversification from traditional equity and fixed income strategies.