Prepared September 2025. This page describes a discretionary portfolio run as a Separately Managed Account (assets held in your name at a third-party custodian). Informational only; not an offer.
Fixed Income Separately Managed Account: Covered Call ETF Portfolio
Convert a defined share of upside into scheduled cash flow through a documented options policy.
We run a rules-based covered call ETF sleeve to target recurring cash distributions, keep custody in your name, and deliver clean reporting.
Who This Is For
Profile
Private clients, family offices, corporations, and fiduciaries that want a clear income policy with liquid instruments.
Objectives
Recurring cash flow, policy discipline, and transparency alongside existing fixed income or equity exposures.
Custody
Assets stay at your chosen custodian. We trade under a limited authorization.
Minimums & Fees
Account minimums apply. Fees quoted after we review scope and custody.
How It Works
- Mandate: We set coverage, strike bands, and roll cadence (weekly or monthly). Guardrails are documented.
- Execution: We overwrite a defined portion of ETF exposure with calls and maintain the cadence through cycles.
- Cash Flow: Distributions reflect option premium, dividends, and trading outcomes. Amounts vary with volatility.
- Monitoring: We track coverage, fills, slippage, and exceptions; we reconcile positions and cash monthly.
- Reporting: You receive holdings, premium capture, roll stats, and variance commentary on a fixed schedule.
What You Receive
Written Policy
Coverage ranges, strikes, cadence, rebalancing, and cash handling in plain English.
Disciplined Execution
Consistent rolls, attention to liquidity, and documented exceptions.
Institutional Reporting
Coverage history, attribution, and compliance checks.
Coordination
Alignment with your tax, compliance, and treasury requirements.
What We Need To Start
- Account details and custodian preferences.
- Cash objectives, constraints, and rebalancing rules.
- Reporting cadence and approval process for changes.
Key Risks
- Capped upside: Rallies can outrun results when calls are exercised.
- Equity risk: Option premium cushions but does not remove drawdowns.
- Variable payouts: Cash varies with volatility, coverage, and strikes.
- Costs and execution: Spreads, slippage, and ETF tracking matter.
- Tax: Distribution character depends on fund policy and jurisdiction.
FAQs
Is this a bond replacement?
No. It is equity-linked. Many use it beside core fixed income to diversify cash sources.
Are payouts fixed?
No. They move with volatility and policy settings. We target a prudent range and report results.
Can the policy change?
Only with your approval. Changes are documented; exceptions are logged and reviewed.
Request a Separately Managed Account Proposal
Share your cash goals, constraints, and custodian. We will return a mandate outline, sample reports, and next steps.
Start NowRisk. Investing involves risk, including loss of principal. Covered call strategies cap upside and carry equity volatility. Distributions are not guaranteed. Past performance does not predict future results.
Options. Options are not suitable for all investors. Read “Characteristics and Risks of Standardized Options.”
Advisory Only. This page is not investment, legal, accounting, or tax advice and is not an offer to sell or a solicitation to buy any security. Any engagement is governed by a signed investment management agreement. Services may be provided via regulated partners where required.
Tax. Distribution character varies by fund policy, account type, and jurisdiction. Consult your tax adviser.
Custody. Assets are held at third-party custodians in your name. Protections have limits and do not cover market losses.
Reg D / Rule 506 (if applicable). Any private offerings referenced are for qualified investors only and only via final offering documents.
