|Top 10 Holdings|
|Ares Capital||Vodafone Group|
|Eaton Vance Fund||HSBC Holdings|
|Macquarie Infrastructure||US Bancorp|
|Wells Fargo||EPR Properties|
Generating steady income from traditional fixed income investments is currently a challenge due to the low interest rate environment. The Income Portfolio attempts to overcome this by building a diversified portfolio of income generating securities across asset classes and sectors. While this portfolio does contain more risk than traditional high quality bonds, we believe the long-term risk is lower compared to a strategy of holding long-dated or lower quality bonds. This month, we took advantage of stocks we like in the long term, after they got hit, adding to both MAT and MIC. We also added to financial stocks that will benefit from a rising rate environment, adding to ARCC and adding GHL. We added to Healthcare stocks, AZN and BMY, also focusing on the long term pipeline in oncology, and MPW which has been hit by the correction in HC stocks. We swapped agricultural stocks, selling ADM, and buying POS and CF and believe that the ag cycle is in the early stages of a multi-year period. Our process focuses on selecting high quality securities that provide above average current dividends and a sustainable record of above average dividend growth. The current dividend yield of the portfolio is 5.68%.
This investment strategy is not a recommendation to buy or sell any of the securities mentioned. Past performance is not a guarantee of future results.