Brandes Investment Partners and Sionna Investment Managers have launched a new monthly income fund, the Brandes Sionna Monthly Income Fund (BSMIF), which they describe as a conservative mix of 60/40 Canadian equities and fixed income securities. The fund seeks to provide risk management in down markets and potential for capital appreciation while income is received; it seeks an annual payout of 4%.
Equity management is sub-advised by Sionna Investment Managers, Inc., and fixed income management is sub-advised by State Street Global Advisors Ltd.
“The BSMIF blends two risk-conscious managers in a compelling portfolio for conservative investors,” said Carol Lynde, president and chief operating officer of Brandes Investment Partners. “It’s not exciting, but it may be an appropriate investment for conservative investors today and tomorrow, without sacrificing the potential for long-term appreciation.”
The equity component concentrates on large Canadian companies that Sionna considers to be undervalued, with lower financial risk. Investments may also include securities, such as preferred shares, real estate investment trusts and convertible bonds.
The fixed income component seeks to control risk and volatility versus the broad market while using fundamental credit and economic research to add value.