The Smart Income strategy is focused on maximizing consistent cash-flow in a low interest rate environment, while guarding purchasing power over the long-run. The portfolio invests in investment grade fixed income securities including bonds, convertable debentures and preferred shares to deliver high cash-flow, with investment in high yield securities limited to 20% of the total portfolio market value.
The stocks are selected through a screening process to find businesses trading at a reasonable price, that offer generous, sustainable dividends and earnings growth to keep up with inflation over the long-run. The portfolio may hold Exchange Traded Funds (ETFs) and equities are constrained to Canadian companies with a market capitalization in excess of $1 billion and U.S. companies in excess of $3 billion. Alternative strategies, used for diversification from time to time, are limited to 10% of the portfolio.
This portfolio seeks to provide income and to grow capital in excess of inflation and the benchmark on a risk-adjusted basis, net of fees, over a rolling three-year period. Securities are held individually in each client's account and trades are executed simultaneously for all clients. For a detailed Investment Policy Statement (IPS), please contact our office.
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