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click on a strategy below for more details
HIGH INCOME
DIVERSIFIED INCOME
CORE PLUS
INTERMEDIATE TERM
ABSOLUTE INCOME
MUNICIPAL INCOME
Our other strategies include:
•SMHCA Socially Responsible High Income
•SMHCA Socially Responsible Diversified Income
•SMHCA Unconstrained Total Return Income
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SMH Capital Advisors LLC provides advisory services for many types of investors
| As of 12/31/18 these investors include: |
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| Platform Programs (pp) |
29% |
| Institutional (P) |
48% |
| Separately Managed Accounts (SMA) |
16% |
| Mutual funds (MF) |
7% |
types of relationships
Financial Professionals
Invest for their individual clients through platform/managed account programs and have at least $200,000 to invest.*
Institutional Investors
Large pension plans or endowments having at least $5 million to invest.
Individuals
Those who do not meet these minimums may obtain our management strategies through
the Catalyst/SMH High Income or Catalyst/SMH Total Return Funds with at least $2,500 to invest.
*Some platform programs/strategies have lower minimums. Contact our Business Development Team below for platform specific information
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HIGH INCOME STRATEGY
PORTFOLIO INVESTMENT STRATEGY
This strategy is managed with a target of 100% high yield corporate and convertible bonds (with residual cash).
PORTFOLIO OBJECTIVES
- To generate a high level of income, which typically produces most of the portfolio’s return
- To generate additional returns through selling more bonds for a profit than for a loss
- To offer a discipline with a low correlation to most relative indices (the portfolio performs differently than indices of the same asset class)
There is no assurance that manager will achieve or maintain these objectives.
SMHCA HIGH YIELD INVESTMENT PROCESS
How SMHCA Breaks Down The High Yield Universe
>>Hover over each discipline for more detail
Credit Risk Reduction -
SMHCA conducts financial analysis, looking for inherent value and tangible assets to support the debt, and reduce credit risk.
Maximizing Returns for the risk -
SMHCA selects securities that provide an adequate yield over treasuries. We do this by avoiding overpriced securities and overpriced markets and by looking for the best relative values in the bonds.
Reduction of Market Risk -
The BofA Merrill Lynch U.S. High Yield Cash Pay Index currently has over 2000 individual securities. It would be virtually impossible for any investor to replicate this portfolio. SMHCA avoids being "the market" and reduces the correlation to index returns. Statistically, most of the diversification of a portfolio has been shown to come from less than the first 20 holdings. By keeping a focused portfolio of generally 40 issuers or less, we reduce market or "systemic" risk.
Materials
• Fact Sheets • Models • Commentaries • White Papers • General High Yield Info
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DIVERSIFIED INCOME
PORTFOLIO INVESTMENT STRATEGY
This strategy is managed to a target, at time of purchase, of 50% investment grade or AAA bonds and 50% high yield bonds (with residual cash).
PORTFOLIO OBJECTIVES
- To provide income and capital appreciation above investment grade indices with less risk than a pure high yield portfolio.
There is no assurance that manager will achieve or maintain these objectives
“A CREDIT BARBELL APPROACH”
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- Performs well in “flight to quality” markets or when economy is waning.
- More sensitive to interest rate movement than High Yield
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- Performs well in flat and improving economy.
- Due to shorter duration, and typically higher coupon, less sensitive to changes in interest rates.
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PORTFOLIO COMPOSITION
High Yield:
Same as SMHCA High Yield Investment Process above (click here)
AAA:
SMHCA Investment Process
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- Fannie Mae (FNMA)
- Freddie Mac (FHLMC)
- Ginnie Mae (GNMAs)
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| Planned Amortization Class (PAC 1 and PAC II Tranches) PAC payment schedules are protected by priorities which assure that PAC payments are met first out of principal payments from the underlying mortgage loans. SMHCA looks for PAC I and PAC II structures. |
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SMHCA looks for the highest available coupon for the best price and value.
SMHCA attempts to purchase CMOs with an average life of 8 to 11 years based on formulas for pre-paid speed assumptions that are based on market conditions.
AAA CMO ALLOCATION (5 - 7 CMO’S)
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materials
• Fact Sheets • Models • Commentaries • White Papers • General High Yield Info
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CORE PLUS
INTERMEDIATE TERM
PORTFOLIO INVESTMENT STRATEGY
This strategy is managed to a target, at time of purchase, of 75% investment grade or AAA bonds and the remainder consisting of high yield bonds.
PORTFOLIO OBJECTIVES
- Designed to achieve higher returns than investment grade portfolios.
- Relatively low correlation to investment grade bonds or equities.
- A strong compliment to an investor’s total portfolio; filling in the gap between traditional fixed income and equities.
There is no assurance that manager will achieve or maintain these objectives
PORTFOLIO COMPOSITION
High Yield:
Same as SMHCA High Yield Investment Process above (click here)
AAA:
materials
• Fact Sheets • Models • Commentaries • White Papers • General High Yield Info
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ABSOLUTE INCOME STRATEGY
PORTFOLIO INVESTMENT STRATEGY
This strategy intends to produce a high level of current income by investing in a broad range of securities to reduce overall risk.
PORTFOLIO OBJECTIVE
- To provide a high level of income to the investor, with capital appreciation as a secondary objective.
There is no assurance that manager will achieve or maintain this objective.
SMHCA INVESTMENT PROCESS
Materials
• Fact Sheets • Models • Commentaries • White Papers • General High Yield Info
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MUNICIPAL INCOME STRATEGY
PORTFOLIO INVESTMENT STRATEGY
This strategy is managed to a target of 100% municipal closed end mutual funds and Exchange Traded Funds (ETFs) to generate a tax advantaged income stream to the client.
PORTFOLIO OBJECTIVE
- To provide a high level of tax free income to the investor.
There is no assurance that manager will achieve or maintain this objective.
SMHCA INVESTMENT PROCESS
Materials
• Fact Sheets • Models • Commentaries • White Papers • General High Yield Info
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