The hunt for income has become a never-ending quest in recent years, as the bond markets’ rapidly changing dynamics simply aren’t getting the job done for most investors. Many advisors are now looking for non-traditional sources to increase their portfolio yield. But how can you make sure that you’re taking appropriate risks to generate future cash flows?
In the upcoming webcast Strategies for a Rising Interest Environment for Non-Traditional IncomeJay Hatfield, CEO of Infrastructure Capital Advisors; George Goudelias (head of leveraged finance, senior Portfolio Manager, Seix Investment Advisors); and John Bartlett (president, portfolio manager and analyst, Reaves Asset Management) will help you assess the landscape and help determine the best risk-return tradeoff for your clients.
The example of an actively managed property is the Virtus InfraCap MLP eTF (NYSEArca AMZA)This can allow investors to gain pure-play exposure through master limited 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 don’t make their money on oil and gas prices. 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).The goal is to provide investors with high levels of current income via senior floating-rate loans. Senior loans are often used to finance business recapitalizations, acquisitions, and refinance.
Seix Investment Advisors LLC sub-advises the ETF. They will manage investments for this portfolio. Seix strives to generate competitive absolute as well as relative risk-adjusted return over the entire market cycle by using 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.
Also, the Virtus Reaves Utilities ETF, (UTES).The fund seeks total return through a combination capital appreciation and income. The fund invests no less than 80% of its net assets plus any borrowings made for investment purposes in equity securities of utility sector companies (Utility Sector Company).
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 should register here for the Thursday, February 3, webcast.