Separately Managed Accounts
Delivering Income Solutions
in a Low-yield Environment
Fixed Income Portfolio Strategies
The Fixed Income Portfolio Strategies offer an intermediate-term taxable bond strategy and short- and intermediate-term tax-exempt strategies for national and state-specific portfolios for residents of states with high personal income tax rates. In addition, our Portfolio Managers specialize in the integration of bond investing with responsible, green investment principles.
Option Income Portfolio Strategies
Shelton Capital Management’s Option Income Program is designed especially for the use of Financial Advisors seeking to improve their client’s risk-adjusted total return while providing cash flow in the form of option premium income.
The Option Income program offers three distinct equity option overlay strategies. Each strategy can be an effective tool for advisors looking to deliver income in a low yield environment. The program is a quantitative driven strategy reflecting in changes in equity prices, time, and volatility.
a. Equity Income Strategy
The Equity Income Strategy serves as a “core equity” strategy within an overall asset allocation program. Shelton Capital selects a diversified portfolio of large cap blue-chip equities and sells covered call options on each of the equity positions to deliver an income stream with lower interest rate risk verses a typical fixed income portfolio.
b. Diversified ETF Strategy
The Diversified ETF Strategy is a total portfolio solution with full asset class representation using a comprehensive mix of ETFs. The mix of asset classes in the underlying portfolio – including U.S. stocks, international stocks, bonds, commodities and real estate – varies with the risk tolerance and model chosen for each investor. The portfolio manager will write, or sell, call options on most or all positions with an objective of generating portfolio income.
c. Single Stock Strategy
The Single Stock Strategy is designed to implement a covered call writing strategy on a concentrated stock position that a client already owns and may or may not wish to sell. With a customizable risk/return tradeoff, we seek to make existing assets more productive.
Each strategy is available as a customized solution. We could also use other equity option strategies that would provide downside protection and reduce risk.
There are management Fees and other charges associated with Shelton Capital Management's Separately Managed Account programs.
Options involve risk and are not suitable for everyone. Prior to buying or selling an option, your client must receive a copy of CHARACTERISTICS AND RISKS OF STANDARDIZED OPTIONS. Copies of this document may be obtained from any exchange on which options are traded or by contacting The Options Clearing Corporation, One North Wacker Dr., Suite 500, Chicago, IL 60606 (1-800-678-4667).
Any strategies discussed, including examples using actual securities’ price data, are strictly for illustrative and educational purposes only and are not to be construed as an endorsement or recommendation to buy or sell securities. You should review transaction costs, margin requirements and tax considerations with a tax advisor before entering into any options strategy.