The Equity Accounts are designed to pursue long-term capital appreciation and dividend income through investments in individual equities, index funds, and exchange-traded funds (ETFs).
 

Portfolio turnover is generally low. However, risk management strategies may be implemented based on market conditions. A proprietary model is used as a tool to help evaluate whether certain positions may be overbought or oversold.

When a position is identified as potentially overbought, a protective option strategy—typically involving the sale of covered calls and purchase of puts—may be used in an effort to reduce downside exposure and potentially generate additional income. This approach may also limit upside potential and does not eliminate risk of loss. These protective positions may be adjusted or closed when the model indicates the position may be oversold.

This strategy is generally applied during periods of market volatility, particularly after significant market gains, when additional risk management measures may be appropriate. Option strategies, such as collars, are used to help manage risk during potential drawdowns. These involve selling out-of-the-money calls and purchasing at-the-money puts, either simultaneously or in close succession.

Options involve risk and may not be suitable for all investors. They may also limit upside performance. Option values may fluctuate based on market conditions and changes in the price of the underlying investments.