Strategy Overview

• Enhanced Total Return (ETR) portfolios are concentrated large cap equity portfolios (20 to 25 names) actively managed using call options to enhance total returns
  
• Short dated call options are sold on a portion of the underlying stocks to generate cash flow in the form of option premiums
  
• The premiums would be used as an additional cash flow for either reinvestment or income needs, or as a cushion against downside moves in the market
  
• The strategy works best in a low market return environment with high volatility and the objective is to add 2% to 6% above the return of the underlying equities in the portfolio
  

For more information, please contact:

New York City John J. Lee Brown Brothers Harriman & Co. 212.493.7708 john.lee@bbh.com

G. Scott Clemons Brown Brothers Harriman & Co. 212.493.8379 scott.clemons@bbh.com

Boston Seth C. Ward Brown Brothers Harriman & Co. 617.772.2271 seth.ward@bbh.com

Charlotte Charles O. Izard Brown Brothers Harriman & Co. 704.370.5556 charles.izard@bbh.com

Chicago Edward X. (Trey) Tune Brown Brothers Harriman & Co. 312.781.7134 trey.tune@bbh.com

Dallas David C. Sharman Brown Brothers Harriman Trust Company of Texas 214.303.1864 dave.sharman@bbh.com

Palm Beach John C. Borland Brown Brothers Harriman Trust Company, N.A. 561.515.0626 jack.borland@bbh.com

Philadelphia Jeffrey J. Idler Brown Brothers Harriman Trust Company, N.A. 215.587.6311 jeff.idler@bbh.com

OPTIONS DISCLAIMER: Options involve risk and are not suitable for all investors. Investors should weigh the risk of options trading against the potential rewards. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (“ODD”). Copies of the ODD are available from your BBH&Co. Relationship Manager, or from The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, Illinois 60606. The information on the Website is provided solely for general education and information purposes and therefore should not be considered complete, precise, or current. Many of the matters discussed are subject to detailed rules, regulations, and statutory provisions which should be referred to for additional detail and are subject to changes that may not be reflected in the Website. BBH&Co. assumes no responsibility for any errors or omissions in the Website. No statement within the Website should be construed as a recommendation to buy or sell a security or to provide investment advice.