Strategies

FTIA pursues investment opportunities where downside risk appears limited relative to upside potential. FTIA will focus on risk mitigation, divest (or potentially sell covered calls) when investments near full valuation and sell when new information materially challenges an investment thesis.

FTIA offers three primary strategies:

• the Capital Appreciation Strategy
• the Total Return Strategy – a strategy that focuses on total return and has a significant yield component
• the Curated High Yielders Strategy – a concentrated strategy focused on high yielders (generally stocks with higher dividend yields) with significant capital appreciation potential

How resources will be allocated between the three specific strategies will primarily depend on the client’s desire for yield and risk tolerance. Some clients may choose to engage in only one of the three strategies.

Capital Appreciation Strategy

Capital Appreciation Accounts will typically emphasize growth through capital appreciation and be comprised of 10-20 investments. These accounts generally will have low turnover.

The Capital Appreciation Strategy seeks to exceed, after fees, the performance of the S&P 500 Total Return Index over the long-term.

Total Return Strategy

Total Return Accounts will invest in securities with an attractive yield and will be more diversified with investments on average representing less than 4% of the portfolio.

For the Total Return Strategy FTIA’s objective is to deliver a yield before fees in excess of 3% and a total return (yield and capital appreciation) post fees that exceeds 8% on an annual basis.

Curated High Yielders

Curated High Yielders accounts will invest in a concentrated set of investments (typically 8-12) that have a meaningful yield component and significant capital appreciation potential.

For the Curated High Yielders Strategy, FTIA’s objective is to deliver a yield in excess of 4% and a total return in excess of the Total Return Strategy over the medium-to-long-term.