Structured Notes SMA
Managed Income Notes Strategy
An actively managed structured note strategy designed to generate attractive income, provide meaningful downside protection, and reduce volatility through institutional sourcing, disciplined portfolio construction, and ongoing risk management.
Bridging the Gap Between Cash and Traditional Risk Assets
Bridging the Gap Between Cash and Traditional Risk Assets
The Income Dilemma
Traditional income solutions have left many investors underserved. Bonds have struggled to keep pace with inflation, while equities often introduce more volatility than many income-oriented investors can tolerate. Snowwater's Managed Income Notes Strategy seeks to bridge this gap by targeting attractive income while incorporating downside protection and diversification across issuers.
Bonds Often Pay Too Little
Core fixed income iShares Core U.S. Aggregate Bond ETF (AGG) has returned just 0.28% annualized between June 30, 2021 and June 30, 2026, failing to keep pace with inflation.
High Yield is Less Predictable
The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) has only returned 3.71% annualized between June 30, 2021 and June 30, 2026, but comes with higher credit risk, and larger drawdown.
Equities Are Sometimes Too Volatile
The SPDR S&P 500 ETF Trust (SPY) delivers strong long-run returns, but -24% max drawdown and 15% standard deviation make it challenging for income-style investors.
Snowwater Investment Partners, LLC | Q22026 | Performance as of 6/30/2026 unless noted | All data gross of fees unless noted | Performance quoted represents past performance. Past performance is no guarantee of future results. Performance figure shown is the average annualized since inception. Inception date of the presented strategy is May 1, 2021. Performance shown is constructed from extracted data and is considered hypothetical, with inherent limitations and no guarantee of future results. Structured note strategies are designed to limit drawdown, whereas the other indexes do not have these protections in place. Data provided by Longs Peak Advisory Services, LLC.
Investment Success Through:
Customized Investment Solutions
Disciplined Implementation With a Strategic Plan
Partnerships With Multiple Custodians & Institutions
Rigorous Due Diligence Process
Maximum Drawdown for Each Strategy - Gross of fees
Structured notes are complex debt instruments whose returns are linked to the performance of one or more reference assets, such as an index or basket of securities. They are unsecured obligations of the issuer, are not FDIC insured, and depend on the issuer's ability to pay. If the issuer defaults, clients may lose some or all of their investment. Downside protection features such as buffers and barriers are limited and generally apply only if the note is held to maturity. Many notes cap potential gains and do not pay dividends. Structured notes have limited or no, secondary market, and clients who sell before maturity may receive less than their original investment. Interim values are generally based on issuer estimates or pricing models and may not reflect actual sale prices. Notes include embedded costs in addition to advisory fees and may have complex tax treatment. Structured notes are not appropriate for every client. Past performance does not guarantee future results, and all investments involve risk, including loss of principal. (05/21/21 - 06/30/26).
How We Build the Portfolio
Custom Note Design
S&P 500 and Russell 2000 exposure, 12-18 month maturities, and 35%+ protection thresholds.
Competitive Issuer Selection
Multiple bank counterparties compete for each note. Diversification across 10-14 investment-grade institutions.
Timing & Entry
Notes are designed to Snowwater specifications rather than selected from retail shelves. Purchases accelerated during elevated volatility environments.
Lifecycle Management
Daily monitoring, credit surveillance, liquidity oversight, and reinvestment opportunities.
Illustrative Strategy Terms
7.5%-9.75%
Target Coupon Range
35%+
Contingent Downside Protection
12-18
Month Maturities
14
Investment Grade Issuers
Annual % Returns — Snowwater vs. Benchmarks – Ending 6.30.2026
Average Annualized
Since inception*
Snowwater Investment Partners, LLC || Performance as of 6/30/2026 unless noted | All data gross-of-fees unless noted | Returns are presented both gross-of-fees and net-of-fees, and all periods greater than 1-year are annualized. The net fee is 40 basis points. Performance quoted represents past performance. Past performance is no guarantee of future results. The performance figure shown is the average annualized return since inception. *Inception date of the presented strategy is May 1, 2021. Performance shown is constructed from extracted data and is considered hypothetical, with inherent limitations and no guarantee of future results.
Net-of-fee returns are calculated by reducing the gross-of-fee returns by a model management fee of 0.40%. This is applied monthly by geometrically reducing each month’s gross-of-fee return by 1/12 of the annual fee. To reduce this geometrically, the following formula is used: ((1 + gross-of-fee return for month) / (1 + (1/12 x 0.40%))) - 1 = net-of-fee return for the month.
The Snowwater Difference
Three structural advantages, that deliver better outcomes for our clients meaningfully, built over years of institutional experience.
I — Execution
Our scale creates direct relationships with bank trading desks across 14 counterparties. We negotiate with the intermediaries to get the best pricing possible.
- $650M+ in executed structured note volume
- Direct access to 14 investment-grade bank desks
- Competitive bidding on every note purchase
- Seek intraday execution timed to volatility conditions
The difference between retail and institutional pricing can mean 50–150+ basis points higher coupon yield on the same note.
II — Design
Every portfolio we manage is built around the client in front of us. We do not select from model portfolios or pre-built shelf products. Every term sheet is written from scratch.
- No model portfolios; Fully customized term sheets per client for structured notes
- Index, barrier, maturity, and coupon tailored per client
- Strategy reflects objectives, tax status, and horizon
- Notes designed to precise specifications on each trade
III — Management
Our team monitors every position daily, times reinvestment strategically, and tracks credit risk at the issuer level throughout the life of each note.
- Daily barrier monitoring on all active notes
- Principal reinvested within 5–10 business days of maturity
- Volatility-timed entry — accelerate in VIX spikes
- Actively monitor Credit Default Swaps
Managed Income Note Strategy
Snowwater has over 25 years of experience successfully managing Structured Notes.
Our Managed Income Note Strategy thoughtfully designs and purchases customized Structured Notes that pay high single-digit coupons with a minimum of 35% downside protection to manage the risk of principal loss. Our goal is to have a less than 1% chance of breaking while maintaining attractive returns.
Download Our Strategy Fact Sheet and Presentation Below:
Proprietary and Confidential - Snowwater Fact Sheet Q2 2026
Please contact us for the full fact sheet and presentation, including our verified strategy performance: