Portfolio Objective

The primary portfolio objective is to provide a high level of sustainable, tax-efficient, monthly distributions generated from a diversified portfolio of cash generating investments. The portfolio will target a tax-efficient income stream of 6% per annum, payable on a monthly basis, without depleting capital.  A secondary objective is conservative growth with excess cash retained within the portfolio to provide flexibility. Capital preservation will be a priority at all times.

Investment Strategy

The portfolio is constructed to provide diversified exposure to a wide range of income-generating securities with capital preservation being paramount at all times. Permitted investments include government and corporate bonds, preferred shares, convertible debentures, REITs and dividend paying common shares, along with closed-end funds and exchange-traded funds (ETFs) holding these same types of securities.

In excess of 65% of the portfolio will typically be held in direct fixed income securities with specific coupon rates and maturity dates.  A special emphasis will be placed on acquiring income-generating closed-end funds (Funds) at significant discounts to their underlying Net Asset Value (NAV) when there is an option to redeem the Fund within 12 months of purchase at 100% of NAV.  These captured “discount to NAV”  Funds provide downside protection over the holding period, and eventually provide a boost to the portfolio’s return as the Fund’s market value converges with its NAV as the redemption date approaches. “Bear” ETFs may also be employed from time to time to provide portfolio insurance within the minimum/maximum asset allocation range.
 


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Complete portfolio summaries and commentaries are available upon request. 

Please contact us for more information.

Contact: 604-643-7083 

Email: pborisoff@cgf.com