The Quality Income Strategy
Most people are familiar with government guaranteed investments, such as Guaranteed Investment Certificates (GICs) and Canada Savings Bonds (CSBs). You “loan” your money to the government for a certain length of time and, in return, receive a guaranteed amount of interest upon the bond’s maturity date.
But few people realize that corporate bonds work the same way, and usually pay over twice as much interest than government bonds. Just like various governments, corporations sell bonds that come with an unconditional guarantee that they will repay both your principal and your interest — in full and on time.
Corporate bonds and other fixed income solutions are an excellent way to enhance your returns, balance your portfolio and reduce risk. Pension funds are renowned for astute long-term investing and most of them have a huge portion of their assets in corporate bonds.
Our Quality Income Focus
The following illustrates my core investment approach versus the two most common alternatives. While many advisors dabble in bonds, I specialize in maximizing the potential of bonds to build, diversify and reduce the risk of a portfolio. For our equity investments we focus on shares that pay dividends and raise dividends over time.
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Quality Income Specialists
Director, Wealth Management
Associate Investment Advisor
Richardson GMP Limited
540 Bingemans Centre Drive, Suite 100
Kitchener, ON N2B 3X9