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Yield Enhancement

Yield Enhancement seeks income with a steadier ride, in two profiles: Conservative, built from short-duration Treasuries and high-quality bonds, and Moderate, which adds a BuyWrite sleeve for equity-linked income.

Compare the two profiles

The two profiles

Yield Enhancement seeks income from high-quality, short-duration bonds. The Moderate profile adds a BuyWrite sleeve for equity-linked income, and a client can move between the two profiles as needs change.

Conservative

Short-duration core

Short-duration Treasuries and high-quality bonds, built to seek stability. It is the more conservative of the two profiles and carries no options overlay, so its income comes from the bonds themselves.

  • Built fromShort-duration Treasuries and high-quality bonds
  • Equity participationMinimal
  • Designed forConservative income needs
Moderate

Core plus a BuyWrite sleeve

The same high-quality bond foundation, with a BuyWrite sleeve: long-dated covered calls, typically in the money, managed case by case. The sleeve adds option-premium income, which is driven mainly by volatility and time rather than by rates, along with some equity participation and more volatility than the Conservative profile.

  • Built fromHigh-quality bonds and a BuyWrite sleeve
  • Equity participationHedged, through covered calls
  • Designed forIncome with some equity participation

Where it fits

Yield Enhancement is built to serve as the income allocation of a portfolio. Conservative is the lower-volatility profile; Moderate adds equity-linked income and more volatility.

Talk with us about Yield Enhancement

Tell us what the income allocation needs to do, and we’ll walk through the two profiles and how each sits alongside the rest of the portfolio.