Capital Income

Strategy & Objective

Strategy Description
The Capital Income strategy leverages our expertise in researching equity and high-yield securities to construct a portfolio emphasizing high current income. The majority of the portfolio is invested in dividend-paying stocks and high-yield credits. Up to 20% can be invested in other corporate income-producing securities such as preferred equities and convertible bonds. While our focus is on income generation, we seek undervalued securities with the potential for price appreciation. Capital Income employs a bottom-up, flexible asset allocation methodology, supplemented by a quantitative asset allocation model.

What to Expect

  • A focus on income generation
  • 40–60% invested in dividend-paying value equities (40–60 stocks)
  • 40–60% invested in high-yield corporate securities (100–125 bond issuers)
  • Thoroughly researched ideas vetted by an experienced team of 22 investment analysts

Read more about the capital income strategy


As of 12/31/2017

Asset Class Hybrid
Benchmark S&P 500
Benchmark ICE BofAML U.S. Corporate, Government
& Mortgage
Strategy Assets (millions) $39
Number of Stocks 40 – 60
Number of Bond Issuers 100 – 125
Typical Market Cap Range >$1 billion (stocks)
Status Open to new investors

Investment Team
We employ a team approach to investing. As such, our clients benefit from the input and contribution of every member of our 22-person investment team. In addition to our Portfolio Coordinators, our sector teams play an important role in determining the positioning of your investment strategy.

The ICE BofAML Indices were known as the BofA Merrill Lynch Indices prior to October 23, 2017.

Index definitions