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Diversify Your Portfolio with Fixed Income Investments

 
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Diversify your portfolio with fixed income investments for stability.

A graphic of the different types of fixed income investments and their associated risks.

,"Fixed Income investments come in many different forms and are generally divided into two broad categories: debt, which is a loan, and equity, which is an ownership stake in a company or other entity.","Investing in fixed income securities is a great way to diversify your portfolio and reduce risk, while still having the potential to generate a steady stream of income.","Fixed income investments are a great way to diversify your portfolio and reduce risk, while still having the potential to generate a steady stream of income. They can be a great addition to any portfolio and can provide more stability in uncertain times.

Fixed income investment is a category of investment focused on preservation of income and capital, and entails consistent and regular cash flows to investors. It is a great way to diversify your portfolio and reduce risk, while still having the potential to generate a steady stream of income. Fixed income investments come in many different forms and are generally divided into two broad categories: debt, which is a loan, and equity, which is an ownership stake in a company or other entity.

Debt investments are typically considered lower-risk investments than equity, as they are less volatile and generally pay a fixed rate of return. Government bonds, corporate bonds, and mortgage-backed securities are all examples of debt investments. Government bonds are issued by the US Treasury and backed by the full faith and credit of the US government. Corporate bonds are issued by corporations and can have varying levels of risk, depending on the issuer. Mortgage-backed securities are investments backed by a pool of mortgages.

Equity investments are typically considered higher-risk investments than debt, as they are subject to market fluctuations and changes in corporate performance. Common stock, preferred stock, and mutual funds are all examples of equity investments. Common stock represents ownership of a company and usually pays dividends. Preferred stock is similar to common stock but generally has a higher dividend yield and less risk. mutual funds are a type of investment fund that pools money from many investors and invests the money in a variety of stock, bonds, and other securities.

Pender (“Pender”) is pleased to provide some updates for clients of our fixed income investment funds. The Pender Bond Universe Fund (the “Fund”) is a fixed income mutual fund that invests in a variety of bonds and other debt instruments. The Fund has been able to generate consistent returns over the past five years and is expected to continue to do so in the future.

Several fixed income CEFs increased the monthly distribution multiple times during 2022, yet still trade at discounts to NAV offering investors the opportunity to purchase high yielding securities at a discount. In addition, Pender has continued to reduce the expense ratio for the Fund, which has allowed for increased returns for investors.

investment ideas within the Fixed Income & Technology sectors have been gaining traction in the past few months. There are several opportunities for investors to capitalize on these trends and make informed decisions about their investments. In particular, U.S. pension fund executives expect to navigate a recession by the end of 2023, but while the market return environment is set to remain challenging, fixed income investments can still provide a steady stream of income.

It's true: you could help insulate your investments from unexpected shifts in stock markets with government bonds or the right corporate bonds. But if you're looking for more yield, you might want to explore the potential of fixed income investments. These investments don't come without risk, but they can provide a higher return than other investments and can help diversify your portfolio.

With much of the Fed's heavy lifting in the rearview mirror, we anticipate that 2023 will see quieter fixed income markets. This could create a more attractive environment for fixed income investments, as investors may be more likely to seek out higher yields and less market volatility from these investments.

In January, international equity captured the top two inflows among exchange-traded funds listed in the U.S., while fixed income ETFs broadly outperformed their international counterparts. This could be a sign that investors are shifting more of their allocations to fixed income investments in order to reduce risk and receive more stable returns.

Fixed income investments can be a great addition to any portfolio and can provide more stability in uncertain times. They are a great way to diversify your portfolio and reduce risk, while still having the potential to generate a steady stream of income. With the potential for higher yields and less market volatility, these investments can help investors protect their portfolios from market volatility while still generating a return.

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fixed income investmentpreservation of incomecash flowsdebt investmentsgovernment bondscorporate bondsmortgage-backed securitiesequity investmentscommon stockpreferred stockmutual fundspender bond universe fundfixed income cefsnavexpense ratiofixed income & technology sectorsu.s. pension fund executivesrecessionhigher yieldsmarket volatilityexchange-traded fundsinternational equitystabilitydiversify portfolioreduce risk

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