Enhanced Income Fund
The Davis Rea Enhanced Income Fund is designed to invest across a firm’s capital structure, primarily through income generating products. The Fund is comprised of two parts – the Core and Overlay Portfolios. The Core Portfolio is a long-only portfolio, focussed on generating income by primarily investing in fixed income and equity products that provide attractive yields and the potential for capital appreciation. The overlay portfolio is immunized against interest rate risk and is designed to isolate and capture credit spreads to enhance overall returns.
Why Invest In The Davis Rea Enhanced Income Fund?
- Risk Management: Through the use of hedging strategies to protect investors from interest rate and credit risk.
- The Active Management Advantage: Finding opportunities to enhance yield while mitigating risk is difficult through conventional passive fixed income vehicles. The Fund aims to provide return enhancing benefits of active management while prudently managing risk.
- Flexibility With More Opportunity to Generate Returns: The strategy invests in conventional bonds, hybrid securities (preferred shares, convertible bonds) and equities in order to capitalize on the most attractive segment within a company’s capital structure. Active trading strategies such as relative value, interest rate carry, sector positioning, and short selling government bonds to neutralize interest rate risk are employed to provide attractive risk-adjusted returns.
- Expertise You Can Rely On: Experienced management team with a proven track record.
The objective of the Davis Rea Enhanced Income Fund is to provide investors with a combination of both income and capital appreciation. The Fund will seek to achieve its investment objectives by primarily investing in a diverse mix of North American fixed income securities for short-term and long-term gain.