VIP Core Income Growth

The Core Income Growth strategy combines 45 to 55 of these companies into a diversified portfolio that is designed to perform all four jobs well for clients through a variety of economic conditions. It is our core strategy balancing above average current income, annual income growth, long-term appreciation and capital preservation.

Strategy Parameters

1               Targeted Portfolio Current Yield is 1.50x – 1.75x the S&P 500 Index

2               Targeted Annual Dividend Growth is 6% - 8%

3               Each company pays a cash dividend

4               Maximum position size at purchase is 4.0%

5               Cash is frictional and generally represents 1% to 3% of portfolio value

6               Annual portfolio turnover expectation is 15% to 25%

7               Sell or trim decisions are based upon better opportunities for current yield, dividend stability, downside capture expectations, capital appreciation and expectations for dividend growth.

8               The strategy may include REITs and MLPs, but portfolios can be configured to avoid generating K1s through the use of alterative non-K1 investments.

Link to Fact Sheet

 

VIP Accelerated Income Growth

The Accelerated Income Growth strategy combines 45 to 55 of these companies into a diversified portfolio that is designed to generate above average income growth and long-term appreciation.  Current income and capital preservation are still important but are secondary objectives.

Strategy Parameters

1               Targeted Portfolio Current Yield is 1.25x – 1.5x the S&P 500 Index

2               Targeted Annual Dividend Growth is 8% - 10%

3               Each company pays a cash dividend

4               New positions must have a minimum current dividend yield of 2.0 % at purchase

5               Maximum position size at purchase is 4.0%

6               Cash is frictional and generally represents 1% to 3% of portfolio value

7               Annual portfolio turnover expectation is 15% to 25%

8               Sell or trim decisions are based upon better opportunities for current yield, dividend stability, downside capture expectations, capital appreciation and expectations for dividend growth.

9               The strategy may include REITs and MLPs, but portfolios can be configured to avoid generating K1s through the use of alterative non-K1 investments.

 Link to Fact Sheet

 

VIP Enhanced Yield

The Enhanced Yield strategy combines 45 to 55 of these companies into a diversified portfolio that is designed to generate above average current income and below average downside capture.  Income growth and long-term appreciation are still important but are secondary objectives.

Strategy Parameters

1               Targeted Portfolio Current Yield is 1.75x – 2.0x the S&P 500 Index

2               Targeted Annual Dividend Growth is 4% - 6%

3               Each company pays a cash dividend

4               Maximum position size at purchase is 4.0%

5               Cash is frictional and generally represents 1% to 3% of portfolio value

6               Annual portfolio turnover expectation is 15% to 25%

7               Sell or trim decisions are based upon better opportunities for current yield, dividend stability, downside capture expectations, capital appreciation and expectations for dividend growth.

8               The strategy includes REITs and MLPs, but portfolios can be configured to avoid generating K1s through the use of alterative non-K1 investments.

Link to Fact Sheet

 

VIP Balanced Income Growth

The Balanced Income Growth strategy combines 45 to 55 of these companies balanced with an appropriate weight of fixed income securities (taxable or non-taxable) into a diversified portfolio that is designed to generate acceptable current income, income growth and a more significant balance of risk-return characteristics for a more risk adverse investor.

Strategy Parameters

1               Targeted Portfolio Current Yield is 1.50x – 2.0x the S&P 500 Index

2               Targeted Annual Income Growth is 2% - 4%

3               Each company pays a cash dividend

4               Maximum position size at purchase is 4.0% (equity) & 10.0% (fixed income)

5               Cash is frictional and generally represents 1% to 3% of portfolio value

6               Annual portfolio turnover expectation is 15% to 25%

7               Sell or trim decisions are based upon better opportunities for current yield, dividend stability, downside capture expectations, capital appreciation and expectations for dividend growth.

8               The strategy includes REITs and MLPs, but portfolios can be configured to avoid generating K1s through the use of alterative non-K1 investments.

Link to Fact Sheet