LMP Capital and Income Fund (NYSE: SCD) is a closed-end management investment company that seeks to provide investors with a high level of current income along with the potential for capital appreciation. Since its inception in 1992, the fund has employed a diversified investment approach across debt and equity markets, aiming to balance yield generation with risk management. The fund’s share structure and use of leverage are designed to enhance overall returns in various market environments.
The fund’s portfolio is primarily composed of preferred stocks, convertible securities and corporate debt instruments, supplemented by common equity positions and selected derivative instruments. By targeting income-producing assets, LMP Capital and Income Fund aims to generate a steady stream of distributions for shareholders. Portfolio managers regularly assess credit quality, duration and interest rate exposure to navigate changing market conditions and to preserve capital.
Over the years, LMP Capital and Income Fund has periodically adjusted its strategy to respond to evolving economic cycles. The fund’s management team leverages in-house credit research and quantitative analytics to identify opportunities in both investment-grade and high-yield segments. Strategic hedging techniques, including the use of options and futures, are employed to mitigate downside risk and to take advantage of relative value across fixed-income and equity markets.
LMP Capital and Income Fund is overseen by an independent board of trustees and managed by an experienced advisory team led by the firm’s President and Chief Investment Officer. The fund primarily serves U.S. investors but may allocate up to 20% of its portfolio to international issuers when attractive opportunities arise. With a track record spanning three decades, the fund continues to prioritize income generation, disciplined risk management and long-term value creation for its shareholders.
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