A turbulent time for income investors
Has your income portfolio declined substantially over the last year? Many income investors have been caught off guard by the rapid increase in interest rates around the world.
Income investors can no longer rely on falling interest rates to boost income securities. The new income paradigm calls for an opportunistic and flexible approach.
LEARN WHAT WE’RE DOING FOR OUR INCOME CLIENTS ⤵
How we’re navigating this new income paradigm
Flexible approach
Flexibility is critical in this new income paradigm. Our flexible approach allows us to meaningly shift between asset classes and securities we believe are positioned best. Many income funds have rigid parameters in place that make strategy shifts extremely difficult–even as the world rapidly changes.
Diversification through multiple asset classes
Our income portfolios typically hold high-yield corporate bonds and debentures, and may also hold preferred shares, REITs, income trust units, and high dividend-paying stocks.
Opportunistic
The sizable year-to-date corrections in equities, income, and income-related securities has created opportunities for long-term investors.
Our opportunistic and disciplined approach allows us to identify undervalued securities. We screen a broad universe of securities to search and rank opportunities based on risk/return parameters and then we qualitatively analyze specific securities. Issuer fundamentals, including cash flow and asset valuation, are stress-tested for interest coverage, asset coverage and the ability to honour maturities, in order to mitigate the risk of permanent loss.
Our Income Models
INCOME MODEL
Follows a value approach to income investing, targeting securities which our analysis indicates are mispriced, with a view to providing above average risk adjusted returns from current income and potential capital gains.
INVESTMENT GRADE INCOME MODEL
Utilizes a quantitative approach to uncover investment grade corporate bond opportunities.
A turbulent time for income investors
Has your income portfolio declined substantially over the last year? Many income investors have been caught off guard by the rapid increase in interest rates around the world.
Income investors can no longer rely on falling interest rates to boost income securities. The new income paradigm calls for an opportunistic and flexible approach.
LEARN WHAT WE’RE DOING FOR OUR INCOME CLIENTS ⤵
How we’re navigating this new income paradigm
Flexible approach
Flexibility is critical in this new income paradigm. Our flexible approach allows us to meaningly shift between asset classes and securities we believe are positioned best. Many income funds have rigid parameters in place that make strategy shifts extremely difficult–even as the world rapidly changes.
Diversification through multiple asset classes
Our income portfolios typically hold high-yield corporate bonds and debentures, and may also hold preferred shares, REITs, income trust units, and high dividend-paying stocks.
Opportunistic
The sizable year-to-date corrections in equities, income, and income-related securities has created opportunities for long-term investors.
Our opportunistic and disciplined approach allows us to identify undervalued securities. We screen a broad universe of securities to search and rank opportunities based on risk/return parameters and then we qualitatively analyze specific securities. Issuer fundamentals, including cash flow and asset valuation, are stress-tested for interest coverage, asset coverage and the ability to honour maturities, in order to mitigate the risk of permanent loss.
Our Income Models
INCOME MODEL
Follows a value approach to income investing, targeting securities which our analysis indicates are mispriced, with a view to providing above average risk adjusted returns from current income and potential capital gains.
INVESTMENT GRADE INCOME MODEL
Utilizes a quantitative approach to uncover investment grade corporate bond opportunities.