TIA Equity Styles
Preferred Income Style
The investment objective of TIA's Preferred Income Portfolio (PIP) is three-fold: 1) to provide a taxable fixed income alternative through fixed quarterly dividends, 2) to manage the call protection and duration risk, and 3) to produce "equity-like" total returns through the superior historical yield spreads to US Government Bonds existing in the preferred stock market.
There are several components in TIA's preferred stock philosophy:
- High quality marketable preferred stocks (NYSE)
- Superior historical yield spread to 30 year US Government Bond
- $25 par value
- Quarterly dividend payments
- Less than 5 years call protection
The typical preferred stock portfolio will consist of a diversified portfolio of 50-60 stocks. TIA maintains and monitors diversification guidelines on both a company and industry basis.