CLS’s Separate Accounts Income portfolios combine a variety of traditional and non-traditional income-generating assets from around the globe that offer the best yield and risk/return opportunities. Our active, risk-focused approach provides portfolio stability and better opportunity to increase income generation and potentially capital gains.

The income-generating bucket of the portfolio will include one of the following combinations of investments, depending on the investor’s preference and Risk Budget.

Explore Portfolio Segments

ChevronMIThe bulk of the portfolio is placed in traditional and non-traditional income-generating investments with combined risk appropriate for the investor’s comfort level, as defined by the Risk Budget.

Income-generating investments may include, among others:

  • Preferred Stocks
  • High-Dividend Paying Stocks
  • Bonds
  • Real Estate Investment Trusts (REITs)
  • Managed Futures

Diversifying among assets with varying levels of risk and return expectations gives CLS the flexibility to seek out global opportunities and easily adjust the portfolio when market conditions change.

Next, the investor designates an amount to be invested in a low-risk reserve account. This optional “bucket” is designed to generate returns in excess of the average money market fund, but expose the investor to risk less than or equal to low duration investment bonds.

Last, if the investor has a recurring distribution from his or her account, CLS will invest a portion of the portfolio in a low-risk cash account. This account is designed for income for immediate needs and is rebalanced/replenished quarterly with income from the investor’s long-term investments.

Strategy Options
Master Manager Managed Income Strategy: ETFs & High-Dividend Stocks

Strategy seeks to grow the portfolio and create income through allocations to ETFs and stocks that provide above-average income and whose prices have the potential to increase.

Master Manager Managed Income Strategy: ETFs & Current Income Bonds

Strategy seeks to create income through allocations to ETFs and investment-grade bonds with high levels of coupon and interest income.

Master Manager Managed Income Strategy: ETFs, High-Dividend Stocks & Current Income Bonds

Strategy seeks to create income through allocations to ETFs, high-dividend stocks, and investment-grade bonds in order to balance income needs with long-term portfolio growth.

Selecting Individual Stocks

Stock-focused portfolios feature individual stocks that generally have above-average dividend yields and are from companies with stable balance sheet characteristics, such as low debt and strong cash flow. Specific holdings will also include some value stocks, which are generally those with lower price/earnings ratios. CLS also seeks out stocks that demonstrate price attractiveness and momentum.

Selecting Individual Bonds

Bond-focused portfolios invest in 1- to 15-year corporate issues, predominately investment grade (rates A/A2 to BBB/BAA2), and U.S. agencies (bullet, callable, mortgage-backed securities). CLS seeks to achieve absolute (as opposed to relative) returns and maintain acceptable levels of interest rate and credit risk by:

  • providing the highest current yield available on investment grade, coupon, and dividend-paying U.S. investments
  • utilizing a high degree of issuer diversification and asset allocation strategic management
  • establishing a defined investment horizon to safeguard investment principal
  • maintaining the highest possible real (inflation-adjusted) returns