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Top Holdings by Model Manager Dan Plettner

|Includes:AWP, GCS, SLM Corporation (SLM)

I thought I'd offer some bullet points for Covestor's contemplation regarding the five largest positions in the Taxable Income Model, in which I try to carry minimal interest-rate risk, relative to bond alternatives.

OSM is an exchange traded note "bond", with unique inflation protection monthly coupon payments. It trades at 16.60 and matures at 25 on March 15, 2007. OSM is also in both the Core and Opportunistic model, but with lesser allocations.

GCS is a Closed-End Fund trading at a discount, whose Board has proposed merging it into an open-end fund. The funds largest shareholder has announced that they will now vote for the merger when the shareholder vote reconvenes on July 22nd.

FDI is a Closed-End Bond Fund with significant undistributed Net Investment Income, trading among the highest discounts in its peer universe. Also, it recently increased its quarterly distribution from 20 cents to 25 cents per share.

BML.PR.G is the largest Preferred Stock Holding, currently trading nearly $10 below its $25 issue price. BML.PR.G provides a current 4.9% market yield, based on its current "floor rate". It is a "floater" whose distribution can increase as short term rates normalize.

AWP is the only Alpine Fund which has most recently increased its absolute monthly distribution. It also trades at the most attractive relative valuation, approximately a 20% discount to its NAV. Very much contrasts the successful short position in AOD on the Opportunistic Model.

Follow Dan Plettner's Taxable Income Model on Covestor today

Stocks: SLM, GCS, AWP