AAM’s Highest conviction closed-ends fund (CEF) ideas combined with Dividend-Paying Equities
The Balanced Portfolio invests using two of our most popular income solutions evenly allocating between the High 50® Dividend and Tactical Income Closed-End Strategies as of the trust inception.
Tactical Income Closed-End Strategy Identifies our highest conviction income-producing CEF ideas from various asset classes and geographic markets with securities selected based on yield, performance and premium/discount to net asset value (NAV) when compared to their peers and historic average. Why Closed-End Funds Today?
High 50® Dividend Strategy Utilizes a disciplined approach to select a broadly diversified portfolio of high yielding U.S. equities.
- 50 holdings with approximately 2% weight (as of the deposit date and may vary thereafter)
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Approximately 10% weight in each of the nine Global Industry Classification Standard (GICS®) sectors other than the Financials and Real Estate sectors and approximately 10% weight from the Financials and Real Estate GICS® sectors combined (for a total of 50 securities). The trust invests in these 50 stocks in approximately equal weightings. Effectively, after September 1, 2016 the strategy seeks to treat the new Real Estate GICS® sector as if it was still positioned under the Financials GICS® sector (as it was prior to September 1, 2016). Learn about the importance of diversification in your sector allocation.
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Potential for exposure to companies across the market capitalization spectrum
Because a CEF’s shares trade in the market based on investor demand, the CEF may trade at a price higher or lower than its NAV. A CEF with a share price higher than its NAV is said to be selling at a “premium” to the NAV. A CEF with a share price lower than its NAV is said to be selling at a “discount” to the NAV. For example, if a CEF has an NAV of $100, based on the current value of its portfolio, but is priced at $90, it is said to be selling at a 10% discount to NAV.