“Get the comfort you need for a good night’s sleep” is the message coming from the recently launched Brandes Sionna Monthly Income Fund, a balanced mix of dividend-paying and fixed-income Canadian securities.
The fund is designed to offer investors a conservative 60/40 balance of Canadian equities and fixed-income securities and seeks an annual payout of four per cent.
The fund seeks to provide risk management in down markets and potential for capital appreciation while income is received.
The fund focuses on long-term consistency and repeatability, with equity management sub-advised by Sionna Investment Managers, Inc. and fixed-income management sub-advised by State Street Global Advisors, Ltd.
It has delivered monthly distributions, which are now set at 3.3 cents per unit through a four per cent annual target payout of interest, dividends, capital gains and return of capital as at Jan. 9, 2012.
“As a result, the BSMIF blends two risk-conscious managers in a compelling portfolio for conservative investors,” says Carol Lynde, president and chief operating officer of Brandes Investment Partners & Co. “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 and paying attractive dividends. Investments may also include securities, such as preferred shares, real estate investment trusts and convertible bonds.
The fixed-income component, advised by SSgA, seeks to control risk and volatility versus the broad market while using fundamental credit and economic research to add value. Adds Lynde, “Both Sionna and SSgA have over 15 years experience managing their respective mandates that comprise the BSMIF, and we think the combination will serve investors well.”