Someone recently recommended Ewing Morris Flexible Income Fund as a solid and safe investment in the current environment. Would you concur? Any thoughts or alternate recommendations appreciated.
Many thanks.
The fund aims to offer exposure to the high-yield bond market and hedges these bonds by shorting the same company's equity. The portfolio is mostly made up of convertible bonds at 49%, followed by high-yield bonds at 2.9%, and the remainder in bonds rated between B and BBB with an aggregate duration of 4.2 years. The equity hedge percentage currently stands at 0%. Sector-wise, the top exposure is to technology, communications, and financials, with a North American geographic focus. It is definitely a unique concept, however. at this point (considering no equity hedge) it can be compared to other bond funds in the market. We would not want this to be core bond-holding. Alternatively, we would consider aggregate bond ETFs such as ZAG and AGG for a core bond exposure and may top-up with a fund like this.