KJH Income Opportunities Fund
What is the investment objective of the KJH Income Opportunities Fund?
The investment objective is to generate stable and dependable income, together with an opportunity for capital appreciation through the ownership of preferred share equities, investment and non-investment grade bonds, and dividend-yielding common shares of Canadian and U.S. corporations. All equity securities will continue to be purchased based on our proprietary underwriting framework, which is a fundamentally-driven security-specific approach with a specific emphasis on companies that pay a dividend or make a distribution. With respect to preferred share equities and corporate bonds, the KJH Income Opportunities Fund will primarily focus on companies that maintain a stable and/or improving credit profile, sufficient to generate income and capital appreciation over the term of the loan.
What does the KJH Income Opportunities Fund invest in?
The Fund invests in a combination of equities, preferred shares and fixed income securities. The Fund can also hold cash when the Portfolio Manager determines that market conditions warrant doing so.
Why this asset mix?
Markets have seen a negative correlation between the returns of stocks and the returns of bonds for 30 years now. By having exposure to both asset classes, this allows the Portfolio Managers to turn more of their focus to individual security selection, ensuring that the fund will always be purchasing the best companies with the strongest balance sheets, and battle-tested business models.
What is the role of the KJH Income Opportunities Fund in your portfolio?
This Fund is meant to be the foundation of your investment approach. This is not the fund that is out there looking to beat the S&P 500 by hundreds of basis points, but is instead meant to be the fund that secures your family’s financial future. It is meant to be a steady grower that compounds over time and doesn’t expose the client to volatility that the market can force upon unwary investors.