The fund aims to produce higher income than investment-level fixed-income products, and also to manage volatility and inflation risk in a broadly diversified equity portfolio.
The SDI Fund’s primary investment strategy is to invest in dividend-paying equity securities, such as common and preferred stock from utilities, energy, infrastructure-related, real estate-related and other companies.
Typically, 50% or more of the fund’s total assets will be allocated to real estate securities. It may also invest up to 25% in total assets in the securities of master limited partnerships (MLPs). Furthermore, the fund may invest in exchange-traded funds (ETFs), exchange-traded notes (ETNs), Treasury inflation-protected securities (TIPs) and futures.
Lowell R. Bolken, CFA, vice president, and Craig M. Stapleton, CFA, quantitative strategies portfolio manager, will co-manage the SDI fund with Joseph R. Betlej, CFA, vice president and portfolio manager.