Redwood Floating Rate Preferred Fund
- FUND DOCUMENTS
An active, fundamental approach to investing in preferred shares to provide a high-quality source of tax-efficient income.
Why This Fund Is Relevant
- A high-quality portfolio of Canadian preferred shares can provide an attractive source of tax-efficient dividends, but because the securities are often sensitive to interest rate movements, an actively managed portfolio may be a better way to invest.
- Redwood Floating Rate Preferred Fund employs top-down macro analysis and bottom-up stock selection as well as active risk mitigation to invest in preferred shares issued predominantly by investment-grade issuers.
- The result: A high quality alternative source of income.
- A diversified portfolio of high-quality preferred shares from investment-grade issuers
- Fundamental investment process includes both top-down macro-economic analysis and bottom-up stock selection
- Active focus on capital protection helps reduce risk
- Tax-efficient source of regular monthly distributions
The Fund changed its name and its investment strategy on May 26, 2015 to invest primarily in floating rate preferred shares. If this strategy had been in place for the full period, performance would have been significantly different.
Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or operational charges or income taxes payable by any unitholder that would have reduced returns. Nothing in any commentary should be considered a recommendation to buy or sell a particular security. The Fund may sell these securities at any time, or purchase securities that have previously been sold. The securities may increase or decrease in value after the date hereof, and the Fund may accordingly gain or lose money on the investment in the securities. Please read the prospectus before investing. The opinions expressed are provided by the portfolio manager responsible for the management of the Fund’s investment portfolio, as specified in the Fund’s prospectus. Unless otherwise stated, the source for data cited in any commentary is the portfolio manager. The statements by the portfolio managers in their commentaries are intended to illustrate their approach in managing the funds, do not necessarily reflect the views of Redwood Asset Management Inc.