Income Advantage™ is designed to generate advantaged current income relative to government securities by selectively investing in corporate income instruments—while maintaining a short duration profile, high liquidity characteristics, and disciplined credit standards.
The strategy exists to address a persistent challenge in portfolio construction: how to pursue higher income without abandoning prudence, liquidity, or governance discipline.
Income Advantage™ does not attempt to eliminate risk. Instead, it seeks to ensure that any risk assumed is intentional, understood, and appropriately compensated.
Income-oriented investors often face an uncomfortable choice. Income Advantage™ was developed to bridge this gap.
The strategy recognizes that credit markets often price risk inefficiently—particularly over short time horizons. With disciplined analysis, investors can sometimes earn additional income without experiencing commensurate increases in realized risk.
This strategy exists to capture those opportunities thoughtfully, not opportunistically.
Credit risk is frequently misunderstood.
It is often treated as binary—either avoided entirely or embraced indiscriminately. In reality, credit risk exists on a spectrum, and markets routinely over- or under-compensate investors for assuming it.
Income Advantage™ approaches credit risk as something to be:
Analyzed, not ignored
Measured, not assumed
Priced, not chased
The strategy focuses on understanding why a yield spread exists and whether it reflects actual economic risk or temporary market dislocation.
Income Advantage™ occupies a deliberate middle ground.
Its purpose is not to maximize income at all costs, but to provide a measured step up in yield while preserving liquidity, flexibility, and capital discipline.
It sits above:
and below:
The strategy invests primarily in:
Duration is intentionally kept short to limit sensitivity to interest rate changes. Security selection emphasizes liquidity, issue size, and structural simplicity.
No leverage is used. Complexity is avoided unless it is clearly compensated.
A defining feature of Income Advantage™ is its emphasis on independent credit analysis.
A margin of safety is required—not only in price, but in assumptions. Securities are selected only when income compensation is judged to be adequate for the risks assumed.
Security selection is guided by a disciplined framework that evaluates:
These constraints protect the strategy’s role and help ensure consistency through varying market environments.
Income Advantage™ is designed to:
It intentionally avoids:
Income Advantage™ is designed to remain flexible.
Price fluctuations may occur, but the strategy is structured to avoid prolonged capital impairment under normal market conditions.
Income Advantage™ typically complements:
It is often used to:
By giving liquidity a home, portfolios avoid reactionary decisions. Optionality is preserved. Long-term strategies are less likely to be disrupted by short-term needs.
From a behavioral perspective, Income Advantage™ helps counter two common mistakes:
Its rules-based discipline supports fiduciary oversight and continuity through personnel or market changes.
From a governance standpoint, the strategy is:
Suitability depends on objectives, constraints, and overall portfolio structure.
Income Advantage™ is well suited for investors who:
The value of Income Advantage™ is realized through:
By approaching credit thoughtfully, the strategy aims to make income repeatable, not reactive.
