Our Income Solutions Philosophy

Our Objective

To deliver superior returns by investing in quality income securities at attractive valuations.

Our Process

To identify appealing companies, we apply a consistent, disciplined investment process called the KBSH Income Score. Companies are scored based on fundamental, bottom-up security analysis of the following factors:

• attractive industry profile
• sustainable competitive advantage
• strong balance sheet
• stable/growing cash flow and earnings
• sustainable/growing distribution
• strong and stable management

The final component of our process is valuation. Our valuation metrics include:

• price/free cash flow
• price/earnings
• discounted cash flow
• dividend yield
• credit spread (high-yield, leveraged loans and corporate bond investments)

Income Solutions

To meet income needs, we manage income generation through:

• government and corporate bonds (investment grade and high income paying equities, non-investment grade)
• diversified income
• preferred shares