Saturna Capital Corporation, investment adviser to the Amana, Sextant, and Idaho Tax-Exempt Mutual Funds, has launched the Sextant Global High Income Fund, which bets on a globally diversified portfolio of debt and equity securities.
The fund is co-managed by Bryce Fegley and John Scott, who have been members of the Saturna investment team since 2001 and 2009, respectively. They will work closely with Saturna’s chief investment officer Nicholas Kaiser.
Sextant Global High Income Fund will be marketed to baby boomers as well as to risk-averse, income-seeking investors.
“The baby boomer generation is expected to face challenges in generating income for retirement, due to lower economic growth, lower yields on U.S. government bonds, and potential inflation,” said Fegley, in a statement.
“On top of that, the ratio of retirees to workers in the U.S. will increase by 75% over the next 15 years, potentially triggering a generational wave of market sell-offs as retirees draw on their 401(k)s. Our new fund is a solution to the downward pressure we expect to negatively impact U.S. security values,” he added.
On the fund’s prospectus, the management fee is listed as 60 basis points, but the prospectus says it will vary based on performance.
The assets that the fund will target include the 1200 largest dividend-paying common stocks, targeting yields above 4%; global high yield bonds, including sovereigns and U.S. high-yield corporates; and, to a lesser extent, preferred stocks.
Tommy Fernandez writes for Money Management Executive.