Hedged High Income FundINCIX - I SHARES | INCAX - A SHARES | INCCX - C SHARES | INCSX - R6 SHARES
- $20.76 M
Portfolio Assets 6-23-2021
- $20.76 M
- $9.35 NAV 6-23-2021
*The Fund’s investment adviser has contractually agreed to reduce its fees and/or absorb expenses until at least March 19, 2023 for I Shares to ensure that net annual operating expenses will not exceed 1.84%, subject to possible recoupment from the Fund in future years.
Overall Morningstar rating as of March 31, 2021. Based on risk-adjusted returns. Category: Long-Short Credit out of 43 funds5
More than two-thirds of recently surveyed global corporate bond fund managers expect default rates to climb over the next 12 months.2
Are you exposed to this risk?
“Investors are jumping into bonds like they’re a hot new commodity or even stock, but strategists warn the prices are getting rich as the yields shrink in the Treasury market.” – CNBC August 20193
That’s the size of the investment grade (BBB-rated or higher) bond market.4
That’s a big market. How is your investment grade portfolio diversified?
THE PURSUIT OF YIELD
Let’s face it. This longest-running bull market has been a gift to both equity and bond investors. Yet while returns have been consistently strong, clients seeking current income from their investments have found the last several years quite challenging. Many investors have been forced to migrate towards higher risk investment grade of junk bonds in pursuit of higher yields. But what happens if the economy slows or interest rates rise, as many economists are predicting? Higher yielding bonds could be at great risk, which raises the question of how to seek to protect fixed income portfolios.
The James Alpha Hedged High Income Fund is a potential solution for your clients who desire higher income but also want to minimize portfolio risk. Under normal market conditions, the fund generally invests its assets in hedged and long-short strategies which utilize fixed income and fixed income-related securities. The Portfolio intends to focus on three sub strategies in order to achieve its objectives:
- Senior Loan Floating Rate Strategy – Concentrates on liquid investment opportunities in senior-secured and second-lien loans and bonds.
- Short Duration High Yield Strategy – Seeks to generate uncorrelated returns through stable income and reduced volatility. The Portfolio managers seek to identify short-maturity high yield bonds in smaller, less followed companies.
- Relative Value Long/Short Debt Strategy – Seeks to take advantage of perceived discrepancies in the market prices of certain fixed income strategies, as well as certain convertible bond, common stock, and derivative securities.
WHICH TYPE OF CLIENT IS THIS FUND SUITABLE FOR?
When considering the James Alpha Hedged High Income Fund, it may be most appropriate for investors seeking:
- Monthly Distribution: The Fund has been designed to provide monthly distributions
- Risk Mitigation: Shorter durations may help minimize losses should interest rates rise
- Diversification: Diversification may help create a less volatile portfolio
- Low volatility: Lower volatility may help improve multi-year compounding of positive returns
The primary objective of the James Alpha Hedged High Income Fund is to seek to provide high current income. The Portfolio’s secondary investment objective is to seek capital preservation, with the potential for capital appreciation.