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 Provide attractive long-term capital appreciation; and
4 Each company pays a cash dividend
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.

 

 

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 Partners

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 Annual portfolio turnover expectation is 15% to 25%
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.

 

 

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.

 

 

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 Dividend 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.