Strategies

Preferred shares represent a sophisticated asset class and are actively managed by our team of experienced portfolio managers. An investment in this asset class provides an element of diversification in a portfolio. Our market analysis technology allows us to rapidly identify opportunities amongst the preferred shares available. The latter provides an important source of income for a portfolio, depending on the economic context in which we find ourselves.

Preferred shares are hybrid securities with corporate bond and equity characteristics. We invest in preferred shares that maximize returns as per different rate and buy-back scenarios. This strategy, in particular, reduces the risk of significant capital loss for bonds in the event of rate increases. Preferred shares offer a current significant return and protection in the event of interest rate increases.

Strategy highlights

• Sophisticated asset class that requires cutting edge expertise
• A significant return between 5% and 8%
• Capital protection in the event of interest rate increases
• Issuers with a superior credit quality

Documentation

For further information, contact your Optimum representative.