Opportunity
Investors looking for capital preservation and liquidity are paying an expensive price in the form of a typical 0.5-2.0% yield on money market funds and government fixed income funds. After fees and the negative effects of inflation, the real return is often negative and the investment upside potential is limited.
There is a clear opportunity for a short duration fund distributing meaningful income monthly without significantly sacrificing capital preservation and liquidity.
Strategy
The fund invests actively in a strategic mix of short duration fixed income securities such as floating rate senior secured loans, investment grade corporate bonds, government bonds, and high yield corporate bonds. Investors gain stability in various interst rate scenarios from the blend of floating and fixed income streams. The fund pays a 3.6% annualized yield (at a $10/unit NAV) through monthly distributions to investors.
The Norrep advantage
Niche expertise: Hesperian’s investment management group excels at identifying undervalued securities with significant growth potential. Our track record has shown that favourable investment outcomes can be achieved through our proven and repeatable investment methodology.
Independent insight: Our investment management group has a deep roster of experienced professionals that allows the portfolio managers to objectively view an investment's merits in making informed decisions. We choose to know a lot about niches like high yield bonds and senior loans, rather than a little about everything.
Unique access to fixed income markets: Fund investors benefit from business relationships built over time that keep the portfolio management team well informed on the state of the market for high yield securities and fixed income in general.