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Investment  Philosophy

 

 

Our philosophy is primarily the safeguard of the investment portfolio. This is accomplished through the financial engineering of a convertible bond portfolio, as a "debt" portfolio, an "equity" portfolio or a "balanced" portfolio.

A convertible bond portfolio is a very conservative investment with above average returns. The double action of debt security (the bond), plus the potential equity appreciation (the price of the common shares) makes the convertible bond, " The best of both worlds"

We are value investors. We can search for value in "out of favor" industries. Convertible bonds in "out of favor" industries usually trade very close to, or at, their investment value. The investment value of a convertible bond is the "floor" under which the bond should not trade.

By buying convertible bonds close to their investment value, we increase the bond yield and the yield to maturity. In a sense, we are paid "interest" while waiting for the industry to regain favor.

A convertible bond portfolio is an excellent and safe program for "retirement planning".

 

 

 

INVESTMENT PROGRAMS

 

 

The three main investment programs are:

 

1 ) Convertible bond programs:

a ) Convertible bonds investment portfolio.

b ) Convertible bonds for "retirement planning".

 

2 ) " Market-Neutral " Hedge investment programs:

a ) Canadian Hedge investment programs.

b ) American Hedge investment programs.

 

3 ) Registered Retirement Savings Plan programs:    ( Canadian residents only )

a ) Convertible bonds investment portfolio.

     Selection:

1 )   Maturity date.       ( Average Maturity date = 6 years )

2 )   Coupon rate.         ( Average coupon rate = 6.13 % )

3 )   Bond price.            ( Average bond price = $904.68 )

4 )   Current yield.        ( Average current yield = 6.84 % )

5 )   Diversification.      ( Average number of investments = 5 )

 

 

 

( philoso, 14-01-00 )