Diversified portfolio of non-US and global sector of closed-end funds. We seek to blend our global market outlook with the ability to buy funds, often at significant discounts to NAV while having the opportunity for discount narrowing over time. Yield is a byproduct of the model as many CEFs pay at least annual or semi-annual distributions. We expect the model to be 60%-80% Equity exposure and 55% to 85% Non US holdings at the fund level. We seek duration of the portfolio on a "cash weighted" basis under 2 and a Beta to the S&P 500 between 0.75 and 0.90.
Diversified portfolio seeking primarily equity exposure. The Beta to the S&P 500 is expected to be 0.85 to 1.15. This model is a good candidate for adding SpiderRock's option overlay, as you could outperform in an option-overlaid portfolio when the holdings are more volatile by nature. This portfolio is expected to have little to no duration exposure.
Diversified portfolio focusing on the sectors and funds where we see the best risk-adjusted growth potential. Yield is a byproduct of the model as many CEFs pay at least annual or semi-annual distributions. We expect the model to be 65% to 90% equity exposure based on the fund's reported holdings and seeking to have duration of the portfolio on a "cash weighted" basis around 1 and a Beta to the S&P 500 between 0.70 and 1.0.
Diversified portfolio seeking 50/50 allocation to equity and debt at the fund level; focusing on the highest sustainable dividend levels possible in the current environment with at least 75% of funds paying monthly. Historically 8%-9% is our target income level. We seek to have duration of the portfolio on a "cash weighted" basis under 2 and a Beta to the S&P 500 between 0.75 and 0.95. We offer a 100% monthly paying version of this model (#4.2) for investors that seek this feature to their investment needs and a Tax-Advantaged version of this model (#4.1). A SpiderRock overlay can be a nice addition to this model.
Diversified portfolio seeking 50/50 allocations to equity and debt at the fund level. Researching funds that both have a larger than average absolute discount to NAV as well as wider than normal Comp Discount (vs. peer-group average) without a significantly worse NAV total return performance vs. their peer funds. This model can work well for contrarian investors. A SpiderRock overlay can be a nice addition to this model.
Diversified portfolio seeking 40/60 allocation to equity and debt at the fund level; focusing on less "plain vanilla" or core sectors and managers that could offer a more "hedge fund" like experience and a diversifier to traditional equity and bond allocations. We seek 2% a quarter in distributions at roughly half the Beta to the S&P 500 during normal market conditions with "cash weighted" duration under 2. We offer a Tax-advantaged version of this model (#6.1). A SpiderRock overlay can be a nice addition to this model.
Diversified model based on a 60% equity / 40% debt allocation at the fund level. We believe this model is a "medium risk portfolio" for a typical retired investor. Historically 7%-8% is our target income level. We seek to have duration of the portfolio on a "cash weighted" basis under 2.5 and a Beta to the S&P 500 between 0.60 and 0.85. This model is a good candidate for adding SpiderRock's option overlay, as you could outperform in an option-overlaid portfolio at these Beta levels. We offer a "Tax Advantaged" version of this model (#7.1), that could reduce the after-tax friction by 65%-75% for a typical investor in a taxable environment. We also offer more conservative portfolio (Conservative Diversified), comprised of 2/3 the F/B model and 1/3 invested in non-traditional asset classes using ETFs and open-end funds to reduce the expected volatility over time.
Diversified portfolio focused on the taxable bond and debt-focused business development company (BDC) sectors. This income focused model historically targets a 7%-8% income level. It seeks "cash weighted" duration under 4 and a Beta to the S&P 500 from 0.35-0.50.
Diversified portfolio of roughly 50% equity and bond funds where we see above average dividend coverage as the primary factor after our Trifecta analysis. Historically 6.25% - 7.5% is our target income level and we expect durations under 2.5 and a beta under 0.80.
Diversified portfolio seeking 50/50 allocations to equity and debt at the fund level focusing on a lower Beta for to the S&P 500 in the sector when selecting funds. We seek to have duration of the portfolio on a "cash weighted" basis under 1.75 and a Beta to the S&P 500 between 0.40 and 0.60. This model is a good candidate for adding SpiderRock's option overlay, as you could potentially lower the Beta to 0.25 to 0.40 levels.
Diversified portfolio seeking roughly 50/50 allocations to equity and debt at the fund level. Focusing on exposure to the CEF sectors we find have the lowest long-term NAV correlations to each other. Historically 6%-7% is our target income level. We seek to have duration of the portfolio on a "cash weighted" basis under 3.25 and a Beta to the S&P 500 between 0.50 and 0.70. We offer an "IRA" version of this model (#11.1) that replaces Build America Bond (BABs) exposure for the municipal bond exposure. A SpiderRock overlay can be a nice addition to this model.
Diversified Tax-Sensitive Income
Designed to maximize after-tax yield for high income investors seeking little-to-no tax friction. Equal weight exposure to three CEF sectors who historically have low correlation: municipal bonds, master limited partnerships and tax-advantage equity funds. Muni's, the most common tax-avoidance sector for many investors has a 39% 10 Year NAV correlation to MLPs and 33% correlation to Covered Call Funds. Covered Call funds have only a 70% correlation to MLP funds. We seek a Beta to the S&P 500 of 0.55 to 0.70 and an after-tax yield of 6% to 7%. Duration is expected to be under 4. We offer a Municipal bond overweight version of this model (#12.1) where 50% of the portfolio is Muni bond CEFs.
Business Development Company Select
Diversified portfolio of BDCs with strong fundamental research on each BDC's portfolio and management. Seeking BDCs exposure with above average dividend sustainability, NAV performance, variable and senior secured loan exposure as well as low non-accruals (defaults). We look for sector and geographic diversity. We expect a Beta to the S&P 500 of 0.6 to 0.8 and historically yield levels of 8.5% to 9.5% are common. BDCs have low 10-year correlation to most asset classes; including 15% to municipal bond, 13% to preferred equity and 27% to REITs and only a 40%-43% correlation to high yield and Sr. loans. We offer a "100% monthly paying only" (#13.1), "low Beta" (#13.2) and Premium BDC version of this model (#13.3).
A focused portfolio managed for 100% tax-free municipal bond exposure. We seek to build and manage the portfolio for better than average: discount to NAV, NAV total return performance, distribution levels, duration exposure, dividend coverage and other criteria we believe can give investors a better experience when looking to allocate funds into this sector. We also offer this model with lower duration (and yield) exposure (#14.1).
This is a Diversified portfolio of fund in the following six sectors: Business Development Companies, Covered Call Funds, Loan Participation Funds, Preferred Equity Funds, REIT/ Real Asset Funds and Utility / Infrastructure Funds. They are expected to be weighted with a min allocation of 10% and Maximum allocation of 20% per sector. Exposure should be at a minimum of 40% for both equity and fixed-income holdings for the underlying funds. We anticipate the yield being about 1% higher than the 12 Major Sector Index under normal market conditions.
CEFA Non-Profit Foundation Diversified Income
This portfolio model is designed to be a multi-sector, multi manager portfolio with an emphasis on income producing sectors and high quality managers. The portfolio construction process seeks a mix of assets that have a peer-group correlation under 0.50 and a beta vs S&P 500 of 0.60 in normal market conditions. We expect to be able to offer a sustainable pay-out ratio of 5%-6% based on changing market factors. It would be expected that the portfolio would have a gross distribution yield of 7.25% to 8.25% and we would expect to reinvest 1%. Fees are expected to be 0.50% to 0.85% depending on the account size. This should allow for 5.25% to 6.25% sustainable payouts in dollar terms from the account inception.
As of March 31, 2024
| Investment Portfolio Model | QTD | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception | Inception Date |
|---|---|---|---|---|---|---|---|---|
| Diversified Fixed Income | 4.97% | 4.97% | 15.33% | 0.18% | N/A | N/A | 1.13% | 2/1/2021 |
| Diversified Tax-Sensitive Income | 6.41% | 6.41% | 18.38% | 5.11% | N/A | N/A | 13.64% | 11/1/2020 |
| Alternative Income | 5.68% | 5.68% | 17.81% | 7.00% | 5.47% | N/A | 5.40% | 7/1/2018 |
| Alternative Income Tax Advantaged | 6.23% | 6.23% | 18.67% | 6.84% | 6.40% | N/A | 7.21% | 11/1/2018 |
| Foundation/Balanced | 7.11% | 7.11% | 18.93% | 5.80% | 6.70% | 5.35% | 6.64% | 9/1/2009 |
| Foundation/Balanced Tax-Advantage | 4.26% | 4.26% | 8.25% | 1.30% | 4.22% | N/A | 5.50% | 1/1/2017 |
| Hybrid Income | 6.97% | 6.97% | 21.26% | 7.70% | 6.97% | 6.01% | 5.82% | 12/1/2006 |
| Hybrid Income Tax Advantaged | 6.89% | 6.89% | 20.92% | 6.60% | N/A | N/A | 6.85% | 3/1/2020 |
| Conservative Diversified | 5.37% | 5.37% | 11.43% | 2.61% | 3.16% | 3.25% | 4.79% | 5/1/2009 |
| Diversified Low Beta | 5.70% | 5.70% | 19.99% | 7.56% | 6.81% | N/A | 6.08% | 4/1/2017 |
| Global Growth & Income | 5.92% | 5.92% | 15.50% | 4.49% | 5.08% | 3.27% | 4.09% | 1/31/1999 |
| Globally Diversified Growth | 5.85% | 5.85% | 15.47% | 4.22% | 6.00% | 5.39% | 5.80% | 1/31/1999 |
| Diversified Equity | 5.88% | 5.88% | 14.08% | 5.37% | 7.01% | N/A | 5.17% | 2/1/2018 |
| Business Development Companies | 3.11% | 3.11% | 30.31% | N/A | N/A | N/A | 14.45% | 5/1/2022 |
| Benchmarks | QTD | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception | Inception Date |
| CEF Advisors 15 Major CEF Sectors (MKT) | 8.25% | 8.25% | 22.37% | 4.55% | 7.18% | 6.35% | 7.80% | 12/30/2011 |
| S&P 500 Total Return |
10.56% | 10.56% | 29.81% | 11.49% | 15.04% | 12.96% | 7.91% | 1/1/1999 |
| Barclays Capital Global Aggregate Bond | -2.07% | -2.07% | 0.50% | -4.72% | -1.16% | -0.07% | 2.88% | 1/1/1999 |
| MSCI World (Ex-US) | 5.49% | 5.49% | 15.14% | 4.90% | 7.46% | 4.80% | 4.79% | 1/1/1999 |
| CEF Advisors Taxable Bond & BDC (MKT) | 6.32% | 6.32% | 18.90% | 1.73% | 4.73% | 5.08% | 5.90% | 12/30/2011 |
| CEF Advisors All Sector Equity CEF (MKT) | 7.98% | 7.98% | 19.38% | 4.75% | 8.18% | 7.10% | 8.90% | 12/30/2011 |
| CEF Advisors Debt-Focused BDC (MKT) | 2.83% | 2.83% | 26.38% | 11.25% | 10.95% | 7.59% | 9.84% | 12/30/2011 |
| 60/40 S&P 500/Barclays Bond | 7.78% | 7.78% | 21.22% | 7.29% | 9.06% | 7.15% | 5.62% | 1/31/1999 |
| CEF Advisors 60/40 Balanced (w/ BDCs) | 7.23% | 7.23% | 19.74% | 3.79% | 7.37% | 6.71% | 8.36% | 12/30/2011 |
| CEF Advisors National Municipal Bond | 2.50% | 2.50% | 7.30% | -4.62% | 0.73% | 3.54% | 3.29% | 12/30/2011 |
| Globally Diversified Growth | $4,135,892 |
| S&P 500 Total Return | $6,800,183 |
| Barclays Capital Global Agg Bond Total Return | $2,044,107 |
| 60/40 S&P 500/Barclays Bond | $3,962,305 |
Interested? Contact us today for more information and our brochure!
