Ewing Morris & Co, a Toronto-based investment firm, has launched a new fixed income solution the Flexible Fixed Income Fund, after closing its original round of financing. The fund is managed by Randy Steuart, who joined Ewing Morris & Co as Fixed Income Portfolio Manager in November 2015.
The fund has been established for investors who desire fixed income returns yet are unconvinced that traditional bond portfolios or mainstream balanced funds will sufficiently protect capital through a rising interest rate environment.
Ewing Morris says the fund is unique in its focus on the high yield bond market, utilisation of low levels of leverage, and controlling risk through hedging individual bond holdings by shorting the equity of the same company.
"Our timing looks good with the high yield market currently yielding more than 10 per cent – valuations not seen since the 2008 credit crisis. At current valuations, we believe the high yield market stands out as an attractive and risk-averse alternative to both US equity markets and the paltry yields of traditional income-oriented products," says Steuart. "John Ewing (pictured) and Darcy Morris created a firm that I wanted to invest with and now we have forged a long-term partnership that introduces exciting new investment opportunities for our clients that were seeking a superior fixed income offering. Ewing Morris' unique and focused investment approach, its alignment with clients and its strong track record of results provided a perfect foundation for our shared pursuit."