This strategy seeks income and capital appreciation. The Navigator Income Strategy is suitable for income oriented investors, who seek some appreciation, and who are uncomfortable with substantial stock or bond market risks.
This product is a tactical strategy utilizing multiple income sectors of the market including: REITs, BDC’s, MLP (ETF’s), Utilities, Global Telecom, and Preferred Stock (ETF’S).
PVG will also utilize ETFs (Exchange Traded Funds) to help capture market returns.
PVG reduces undiversifiable market volatility and risk by hedging portfolios with inverse market index securities, stop losses and cash positions. Hedging tactics are utilized to reduce overall volatility of the portfolio, and may also result in minimizing losses that may occur in an unfavorable cyclical or secular market. PVG is utilizing an algorithm based model to implement the hedging for the strategy.
Individual security risk is also managed by PVG. While PVG extensively researches all securities included in Equity Income portfolios, changing fundamental and market conditions, periodically requires the sale and replacement of portfolio securities. Others are sold if they rise to excessive valuations.