TThe quest for income has become a constant struggle in recent years as the changing dynamics of the bond markets have made it impossible for most investors to get the job done. Many advisors have begun to look for alternative sources of portfolio yield. How can you be sure you’re taking the right risks to generate future cash flow?
In the upcoming webcast Strategies for a Rising Rate Environment: Non-Traditional IncomeJay Hatfield is the CEO of Infrastructure Capital Advisors. George Goudelias is the head of leveraged finance and senior portfolio manager at Seix Investment Advisors. John Bartlett, president and portfolio manager at Reaves Asset Management, will provide an overview of the landscape to help you make the best possible risk-return trade-offs for your clients.
For example, the actively managed Virtus InfraCap MLP eTF (NYSEArca AMZA)Investors can gain pure-play exposure to master restricted partnerships. The fund invests in midstream MLPs which are primarily involved in the gathering and processing, transportation, storage, and transportation of crude oil, natural gases, natural gas liquids, or refined products.
MLPs do not make their money on the price of oil or gas. MLPs are not like other energy sector stocks. They primarily deal in the distribution and storage and therefore their business model does not depend on the commodities markets. MLPs can make money off the natural gas and oil they have available.
The actively managed Virtus Seix Senior loan ETF (NYSEArca : SEIX).This loan is designed to provide investors with high levels of current income via senior floating-rate loans. Senior loans are used primarily for business recapitalizations and acquisitions.
Seix Investment Advisors LLC sub-advises the ETF. They will manage investments for this portfolio. Seix seeks to provide competitive absolute and relative returns that are adjusted for risk over the entire market cycle. This is achieved through a bottom up focused, top down aware process. Seix uses multi-dimensional approaches that are based on strict portfolio construction, sell discipline, and trading strategies with prudent risks management as a cornerstone.
The Other Factors are: Virtus Reaves Utilities ETF, (UTES).The fund seeks total return through a combination capital appreciation and income. The fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies within the utility sector (Utility Section Companies).
A company is considered a Utility Sector Company by its manager if at least half of its assets or customers are committed or at least half of the company’s gross income or revenues derive from the provision of products, equipment, or services for the generation or distribution electricity, gas, and water. The fund cannot be diversified.
Financial advisors interested in learning more on non-traditional income strategies may be interested in this article. Register here for the Thursday February 3rd webcast.
These views and opinions are solely the author’s and do not necessarily reflect the views of Nasdaq, Inc.