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High Income

Differentiated Source of Income  /  Multiple Income Sources  /  Proactive Risk Management

Investment Objective

The strategy seeks high current income and long-term capital appreciation. The strategy has a secondary objective to mitigate significant downside volatility. Over a complete market cycle the strategy will pursue returns from traditional fixed income asset classes as well as non-traditional asset classes. Asset class exposure will vary by market opportunity and the outcomes of our research.

Investment Process Overview

Our core fixed income research process incorporates five value-added steps: Duration and yield curve management, capital allocation, vehicle selection, security selection and risk management. The Entasis High Income strategy is designed to leverage our core research process to identify a broad set of income-producing investments, including non-traditional asset classes, with the potential for capital appreciation. By targeting multiple source of income we believe we can generate high levels of income while proactively managing downside volatility.

Investor Profile

  • Long-term cash flow focused investor
  • Core asset allocation strategy already in place
  • Comfortable with price volatility to achieve cash flow goal
  • 5-10 year horizon with no investment principal needs

Investment Risks

The strategy is subject to asset allocation risk and the risks of the underlying funds and ETFs in which it invests. Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. International investing presents specific risks, such as currency fluctuations, differences in financial accounting standards as well as potential political and economic instability. These risks are magnified in emerging and frontier markets. Fixed income investments entail interest rate risk (as interest rates rise bond prices usually fall), the risk of issuer default, issuer credit risk and inflation risk. Lower-quality bonds can be more volatile and have greater risk of default than higher-quality bonds.