
Preferred-Plus (IPPPX)
Preferred-Plus is a professionally managed mutual fund that seeks to deliver income.
The Preferred-Plus Fund’s primary investment objective is to provide current income. The Fund’s strategy is twofold:
- Investing in U.S. Preferred stocks
- Utilizing an option overlay strategy to enhance overall distribution to shareholders
Preferred-Plus Key Facts
Portfolio Manager:
Innovative Portfolios, LLC
Total Net Assets:
(as of December 31, 2020)
I Share — $11,636,877.24
Share Class Launch Date:
12/24/2018
Share Classes:
I Share (IPPPX)
US Category Group:
Taxable Bond
Morningstar Category:
US Fund Preferred Stock
Distribution Frequency:
Quarterly
CUSIP:
I Share — 19423L300
Number of Holdings:
(as of December 31, 2020)
86
NAV Per Share:
(as of December 31, 2020)
I Share — $11.94
Expense Ratios:¹
I Share
Gross Expense Ratio 2.82%
Net Expense Ratio 1.62%
Minimum Investment:
I Share — $5,000 initial
I Share — $100 subsequent
Preferred-Plus Methodology
Preferred-Plus seeks to potentially provide gross annual income from Preferred Stock dividends of 5-6% and gross annual income from an option premium of 1-2%.
Preferred-Plus Portfolio Managers

Dave Gilreath, CFP®
Managing Director
Chief Investment Officer
Portfolio Manager

Edward "JR" Humphreys II, CFA, CAIA
Senior Portfolio Manager
Why Would I Own Preferred-Plus?
Income
Preferred-Plus invests in U.S. Preferred Stocks that pay dividends. The additional option overlay offers the potential for enhancing both total return and cash flow to shareholders.
Diversified Income Stream
The Preferred-Plus strategy includes income-producing Preferred Stocks and potential for premium income from an option overlay. The portfolio is diversified among and within Retail Preferred Shares ($25 Par), Institutional Preferred Shares ($1,000 Par), and Preferred Closed End Funds.²
Complements Overall Portfolio
Preferred-Plus offers the potential to add diversification to the income allocation of the portfolio construct, while the option income may potentially provide an alternative income stream to traditional income vehicles like bonds.
Higher Yield
Preferreds historically offer higher yield than traditional income investments represented by the S&P US Aggregate Bond Index, but come with a higher volatility if measured by the standard deviation. Preferred securities may also offer a tax advantage over bonds—able to be taxed as qualified income while bonds are taxed as ordinary income.
Professional Management
Professional Money Management with access to institutional-level Preferred Shares with experienced option traders managing the overlay.