The Consumer Linked Income Portfolio (CLIP) seeks to generate current dividend income with an emphasis on equities from the Consumer Staples sector that have raised their payout over time. Secondary income may be generated from mutual funds and fixed income investments. Options may be employed from time to time in combination with the core portfolio to attempt to provide limits on losses and/or generate income or gains. Options involve risk may not be suitable for all investors.

MRP Core attempts to capture market gains through synthetic long exposure using call options on the S&P 500 Index or Exchange Traded Funds (ETF) tied to the same index. At inception, approximately 10-12% of the portfolio will be used to purchase these call options with a duration near one year. This allocation is subject to the potential for total loss at expiration.

Ideally, these initial option contracts will increase as the index rises, affording an opportunity to sell them for a profit and roll all or a portion of the profit into the fixed income allocation seeking to protect the profits from subsequent index declines. The balance and majority of the portfolio will be deployed into short duration fixed income securities, typically US Treasuries but can be other fixed income securities. This structure allows for unlimited upside potential if the market moves upward but provides a downside limit on equity losses if the market turns significantly negative.

MRP Lite is similar to MRP Core except approximately 7-10% of the portfolio will be used to purchase call options, with the remainder in fixed income securities.

MRP Growth is similar to MRP Core except approximately 12-15% of the portfolio will be used to purchase call options, with the remainder in fixed income securities.