Trajan Wealth Management, an Arizona-based registered investment advisor, recently introduced the Trajan Wealth Income Opportunities (TWIO) – a fund designed to unearth sturdy, financially sound companies.
TWIO “seeks to provide current income with a preservation of capital mindset while trying to beat the results of an blended index composed of U.S. dollar-denominated preferred and hybrid securities (ICE Preferred & Hybrid – 45%), S&P 500 (30%) and the Barclays Aggregate (25%),” according to the issuer. “Additionally, the Fund seeks to capture upside capital appreciation for under-valued assets within the specified asset classes listed below.”
Adding to the allure of TWIO right now is its value purity, and expectations that the recent rotation into value stocks could be long-lasting.
See also: Top 103 Value ETFs
“The investment strategy is based on looking for financially sound companies operating in industries we view as attractive,” according to Trajan. “Once these companies are identified we look across the capital structure to find investments that will meet our income targets and which we believe offer safety of principal and a return profile that meets our hurdle rate. Investors can expect that, over time, approximately 80% of the total return will come from income with the balance from capital appreciation.”
Why to Try ‘TWIO’
TWIO will typically have 30 to 50 components.
The active nature of the fund makes it more nimble, better-able to capture emerging opportunities in the marketplace.
“The Fund’s managers are Sterling Russell, CFA, and Udayan Mitra, CFA. Combined, they have over 50 years of experience in managing fixed income and equity portfolios ranging up to $10 billion in size,” according to Trajan.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
