Why should I consider a fixed income strategy?
Fixed income investments typically have a low correlation to the equity markets and are historically less volatile. This can provide crucial diversification, especially during [...]
June 2019
What if the client wants to exit the strategy?
The ability to exit the strategy is always available but may have a negative financial consequence. If the client chooses to exit the strategy, [...]
What happens if an early assignment occurs?
There have been occurrences of early assignment. At the time of an early assignment, you are required to surrender shares of the stock. It [...]
Are the projected annual cash flows or the target price guaranteed?
No. They are projections, which depend upon many assumptions, including stock price, implied volatility and interest rates.
What happens if one or more of the positions are “called away”?
The proceeds are reinvested into the appropriate replacement security as determined by the Portfolio Manager.
What are the main risk factors in option overwrite strategies?
Compared to owning the underlying securities outright (without overlay), Covered Call Writing may limit upside potential for securities appreciation. If securities are called away, [...]
Can clients avoid purchases of individual stocks they don’t want to own in Shelton Equity Income Strategy?
Yes. Some investors don’t want to add further concentration of stocks they may already own elsewhere in their portfolios. Others prefer to avoid stocks [...]
Can clients transfer stocks they already own into Shelton Equity Income Strategy?
Yes, if Shelton Capital believes these stocks fit the objectives of the strategy and provide option-writing opportunities, existing positions can be transferred to a [...]
What are the main risk factors in these bond strategies?
All bonds carry a risk that interest and principal will not be paid timely or in full. The benchmark indices against which our portfolios [...]
What is a “green overlay” and how might it affect risk and return?
A portfolio constructed with a green overlay would emphasize bonds that are issued to finance green enterprises or infrastructure; issuers commonly define the uses [...]
