Strategic Income Portfolio

  • Overview

    Overview

    The Eagle Asset Management Strategic Income Portfolio (SIP) is a risk-focused investment program designed to seek stable and growing income as well as the potential for capital appreciation. The Strategic Income Portfolio balances higher-yielding equity and fixed-income securities — Eagle offers two options: a SIP account with taxable bonds or a SIP account with tax-advantaged bonds — in an actively managed account. This is not simply a traditional balanced account with a relatively static ratio of stocks and bonds. Instead, Strategic Income is a dynamically managed portfolio utilizing the talents of Eagle's Equity Income and Fixed Income teams.

    On the equity side, those holdings may include high-yielding common stocks, preferred stocks, convertible bonds and real-estate investment trusts (REITs). On the fixed-income side, potential holdings include government securities; asset- and/or mortgage-backed securities; investment-grade corporate bonds; closed-end high-yield bond funds; municipal general-obligation or revenue bonds; and exchange-traded funds (ETFs).

    Investment Process

    The Eagle Strategic Income Portfolio is a dynamically managed portfolio utilizing the talents of Eagle's Equity Income and Fixed Income teams. We anticipate the long-term allocation mix will approximate a 50-50 blend of stocks and bonds; however, allocations for either asset class may range from 35 percent to 65 percent. Typically, the cash level in the portfolio will not exceed 30 percent.

    The team utilizes a number of economic factors to determine optimum stock and bond allocation. Indicators include Fed model, S&P 500 real dividend growth rate, real economic liquidity, stock/bond trend data, trader sentiment, interest-rate expectations and unemployment claims among others. Portfolio co-managers allocate assets based on analysis comparing the relative attractiveness of stocks vs. bonds. The team also collaborates to determine whether a company's stock or its debt is the most appropriate security for the portfolio.

    Our Equity Income and Fixed Income managers gather regularly to determine the portfolio's equity/fixed-income allocation mix in an effort to optimize the risk/return opportunities from the available income securities. In addition, the managers meet to discuss bottom-up research on portfolio holdings and potential holdings.

    The combined team's goal is to produce high levels of current and future income in dividend-producing stocks and a broad array of fixed-income securities while focusing on stability and participation in the long-term benefits of equity ownership. The single portfolio allows the investment co-managers to strategically adapt their asset-allocation posture to create what they view as the most favorable blend for clients given current economic factors.

    The SIP option with tax-advantaged bonds may be of particular interest to those in higher income-tax brackets due to the preferential tax treatment of both dividends and municipals' interest income. The investment process for both SIP portfolios is identical; the only difference is in the composition of the bonds.

    Portfolio Characteristics

    Portfolio

    Strategic Income Portfolio Taxable

    Benchmark

    50% S&P 500 Index/
    50% Barclays Intermediate
    Government/Credit Index

    Typical Market
    Capitalization

    $2 billion or greater
    (for the equity portion of the portfolio)

    Account Minimum

    $250,000

    Typical Turnover

    Less than 100%

    Typical Number
    of Holdings

    50 to 70

    Portfolio

    Strategic Income Portfolio Taxable-advantaged

    Benchmark

    50% S&P 500 Index/
    50% Barclays 7 Year
    Municipal Index

    Typical Market
    Capitalization

    $2 billion or greater
    (for the equity portion of the portfolio)

    Account Minimum

    $250,000

    Typical Turnover

    Less than 100%

    Typical Number
    of Holdings

    25 to 50

  • Investment Team

    Strategic Income Portfolio Investment Team

    David Blount

    David Blount, CFA, CPA

    Portfolio co-Manager

    34 Years Of Industry Experience

    25 Years With Eagle Asset Management

    James Camp

    James C. Camp, CFA

    Managing Director, Portfolio Manager

    29 Years Of Industry Experience

    21 Years With Eagle Asset Management

    Ed Cowart

    Ed Cowart, CFA

    Portfolio co-Manager

    46 Years Of Industry Experience

    19 Years With Eagle Asset Management

    Joseph Jackson

    Joseph Jackson, CFA

    Portfolio co-Manager & Senior Credit Analyst

    19 Years Of Industry Experience

    14 Years With Eagle Asset Management

    Burton Mulford

    Burton Mulford, CFA

    Portfolio Manager

    32 Years of Industry Experience

    19 Years With Eagle Asset Management

    Harald Hvideberg

    Harald Hvideberg, CFA

    Portfolio co-Manager

    21 Years Of Industry Experience

    4 Years With Eagle Asset Management

    Brad Erwin

    Brad Erwin, CFA

    Senior Research Analyst

    23 Years Of Industry Experience

    10 Years with Eagle Asset Management

    Enrique Acedo

    Enrique Acedo

    Research Analyst

    8 Years Of Industry Experience

    7 Years With Eagle Asset Management

    Michael Rich

    Michael Rich, CFA

    Research Analyst

    13 Years Of Industry Experience

    2 Years With Eagle Asset Management

  • Performance

    Strategic Income Portfolio Performance
  • Literature

    Documents available for download



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