COLLABORATIVE INCOME SOLUTION
The Collaborative Income Solution supports Asset Managers in managing portfolios with equity exposure that are distributing, or close to distributing, income.
The Solution creates income units as per income requirements selected by Asset Manager and assigns proportionate equity holdings to be sold periodically at minimum predetermined prices, or higher.
With one click, introduce and automate the ongoing use of derivatives within equity investment portfolios based on Asset Manager's income goals through a simple and secure, cloud-based application.
Collaborative rules and algorithms select derivatives based on Asset Manager’s qualitative and quantitative research, including, but not limited to: macro factors, market cycle, current equity and bond markets, volatility, sector, and/or asset allocation.
Solution automatically triggers changes in trade execution. The triggers are dynamic and built around Asset Managers’ ongoing research. The Asset Manager stays in full control of portfolio holdings, trading, liquidity, and fees.
The Solution addresses the challenges of sequence risk of equity and conservative asset allocation when seeking long-term sustainable income at the withdrawal stage. While both are perennial risks, today’s environment of low yield and more frequent tail risk events accentuate the same.