Strategies for a rising rate environment


The hunt for income has become a never-ending quest in recent years, as the rapidly changing dynamics of bond markets are simply not enough for most investors. In response, many advisors have turned to non-traditional sources of portfolio performance. But how can you ensure that you are taking the appropriate risks to generate future cash flows?

In the next webcast, Alternative Income: Strategies for a Rising Rate Environment, Jay Hatfield, CEO, Infrastructure Capital Advisors; George Goudelias, Head of Leveraged Finance, Senior Portfolio Manager, Seix Investment Advisors; and John Bartlett, President, Portfolio Manager and Analyst at Reaves Asset Management, will review the landscape and help you find the best risk-return trade-off for your clients.

For example, active management Virtus InfraCap MLP ETF (NYSEArca: AMZA) can help investors gain pure-play exposure to master limited partnerships. The fund invests in midstream MLPs that are primarily involved in the gathering, processing, transportation and storage of crude oil, natural gas, natural gas liquids and refined products.

MLPs do not make their money based on oil or gas prices. Unlike other stocks in the energy sector, MLPs primarily deal in the distribution and storage of energy commodities, so their business model is less dependent on the commodity market, since MLPs profit from the amount of oil and natural gas that they are capable of displacing.

Active management Virtus Seix Senior Loan ETF (NYSEArca:SEIX) aims to provide investors with a high level of current income through senior floating rate first and second lien loans. Senior Loans are typically used for corporate recapitalizations, acquisitions, leveraged buyouts and refinancing.

The ETF is sub-advised by Seix Investment Advisors LLC, which will manage the investments in the portfolio. Seix seeks to generate competitive absolute and relative risk-adjusted returns over the entire market cycle through a conscious bottom-up and bottom-up process. Seix uses multidimensional approaches based on a strict portfolio construction methodology, sell disciplines and trading strategies with prudent risk management as a cornerstone.

Moreover, the Virtus Reaves Utilities (UTES) ETF seeks to provide total return through a combination of capital appreciation and income. The fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities of utilities companies (“utilities companies”).

The Manager considers a business to be a “utilities business” if at least 50% of the assets or customers of the business are engaged in, or at least 50% of the revenues, gross revenue or profits of business come from the supply of products. , services or equipment for the production or distribution of electricity, gas or water. The fund is undiversified.

Financial advisors interested in learning more about non-traditional income strategies can register for the Thursday, February 3 webcast here.


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