Mutual fund firm takes on ‘fixed income dilemma’ with new partnership

Firm's first liquid-alt fixed-income ETF sub-advised by newly founded portfolio management firm

Mutual fund firm takes on ‘fixed income dilemma’ with new partnership

AlphaDelta, a Canadian active mutual fund firm, has added to its lineup of portfolio managers offering innovation, market insights, and over 150 years of cumulative industry experience with the introduction of Juliette John, CFA.

A veteran of the investment industry, John has been named to manage the AlphaDelta Canadian Growth of Dividend Income Class Fund, which is designed to tackle the “fixed Income dilemma.”

Confronted with historically low interest rates and inflation, fixed-income investors face a real risk of capital value erosion. To overcome that, the fund holds dividend-paying stocks that offer both a growing stream of income and moderate capital gains over time.

“We believe a company's willingness to pay and raise dividends is closely related to sustainable earnings growth, and can play a role in justifying valuation expansion over time,” John said.

John applies this dividend philosophy as the founder and portfolio manager at Iris Asset Management, an equity management firm that operates with a focus on valuation and a dividend orientation. With a bottom-up active approach motivated by fundamentals, Iris rigorously analyses stocks based on financial stability, valuation, cash flow generation, and commitment to dividends.

That approach aligns well with AlphaDelta’s commitment to having consistently high active share across its funds, differentiating itself from “closet indexers” that charge active management fees despite offering mostly passive, index-based strategies.

According to AlphaDelta, having Iris’s dividend expertise offers several advantages over larger firms, including:

  • Adaptability – the fund is flexible to changing market conditions;
  • Accessibility – clients and key decision makers are in regular communication; and
  • Allocation advantage – Iris does not run up against ownership limits, giving it the opportunity to include smaller companies in its investment universe

“Juliette John is an investment industry veteran with a great reputation throughout Ontario and Western Canada,” AlphaDelta founder Victor Therrien said. “Juliette's fundamental approach using rigorous research, security analysis and trading discipline will provide value to our unitholders.”


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