When investing for current income, it’s key to weigh the changing composition of the risk/reward profile of different types of income-producing securities (corporate, government and municipal bonds, preferred stock, real estate investment trusts, etc.). These articles assess income investing strategies and some of the primary risks involved.
April proved to be another difficult month for fixed income, given its rising interest rates and widening credit spreads, observes Richard “Crit” Thomas, Touchstone’s global market strategist. With interest rates still fairly low and inflation expected to remain above the Fed’s 2% target for some time, it seems investors are likely to struggle to maintain spending power through their fixed income allocation.
Chris Mathewson of Ares Capital Management, LLC, sub-advisor to the Touchstone Credit Opportunities Fund, examines considerations surrounding the below investment grade universe and discusses how they inform the portfolio’s positioning.
Fort Washington Investment Advisors, Sub-Advisor to the Touchstone Ultra Short Duration Fixed Income Fund
In structuring the Touchstone Ultra Short Duration Fixed Income Fund, macroeconomic perspective helps determine duration, yield curve positioning and credit quality bias. And in seeking returns above the fund’s benchmarks, its sub-advisor relies on both strategic sector focus and bottom-up security selection.
Art DeGaetano of Bramshill Investments, LLC, sub-advisor to the Touchstone Flexible Income Fund, discusses where the portfolio has been seeking relative value and how it is being positioned looking forward.
Art DeGaetano of Bramshill Investments, LLC, sub-advisor to the Touchstone Flexible Income Fund, discusses factors currently influencing interest rate movements and shares his perspective on the risks that may accompany higher rates.
The approach utilized for the Touchstone Balanced Fund seeks to overcome shortcomings associated with traditional balanced stock/bond portfolios while adding value through active management. Fort Washington Investment Advisors, Inc. the Fund’s sub-advisor discusses two proprietary tools designed to address this.