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 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 is the investment objective of the KJH Income Opportunities Fund?
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 a 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.
The Fund is available to clients of Harbourfront Wealth Management Inc. (“Harbourfront”), as outlined in the fund regulation documents. Harbourfront is an affiliate of Willoughby Asset Management Inc. (the “Fund Manager”), the principal selling agent of The Fund and receives fees for its advisory services as detailed in the Fund Regulation document. Investors may purchase The Fund through Harbourfront or other third-party selling agents retained by the Fund Manager. The Fund Manager is responsible for the KJH Income Opportunities Fund (“The Fund”) regulatory compliance, fund operations, business and administrative matters. The Portfolio Managers (“The PMs”) for The Fund, are part of a wealth management team at Harbourfront called KJH Investors. The PMs are responsible for investment decisions for The Fund, including but not limited to, investment strategy, portfolio construction, security selection, asset allocation, performance reporting and benchmark selection.
This information transmitted is intended to provide general guidance on matters of interest for the personal use of the reader who accepts full responsibility for its use, and is not to be considered a definitive analysis of the law and factual situation of any particular individual or entity. As such, it should not be used as a substitute for consultation with a professional accounting, tax, legal or other professional advisor. Laws and regulations are continually changing and their application and impact can vary widely based on the specific facts involved and will vary based on the particular situation of an individual or entity. Prior to making any decision or taking any action, you should consult with a professional advisor. The comments and information pertaining to The Fund are not to be construed as a public offering of securities in any jurisdiction of Canada. The offering of units of The Fund is made pursuant to the Fund Regulation document and only to investors who qualify as accredited investors as defined under National Instrument 45-106. Important information about The Fund is contained in the Fund Regulation document available through the Fund Manager. Management fees, performance fees and expenses all may be associated with investments in The Fund. Investments in The Fund are not guaranteed, the values change frequently and past performance may not be repeated. Unit values and investment returns will fluctuate and there is no assurance that The Fund can maintain a specific net asset value. Harbourfront has relationships with related and /or connected issuers, which may include the securities or funds discussed in this document and are disclosed in the Harbourfront Relationship Disclosure document and the Statement of Policies Regarding Related and Connected Issuers, which can be accessed at harbourfrontwealth.com.