Recently, we’ve found that two of the greatest concerns for clients are minimizing market volatility and generating a reasonable level of income and growth in a world of diminishing returns on bonds and money market accounts.
Hamilton, Bermuda (PRWEB) July 28, 2011
LOM Asset Management Limited announced the launch of the LOM Stable Income Fund SP, which will pay a consistent monthly annualized dividend of 3.6% in 2011 on July 22. The objective of the LOM Stable Income Fund SP is to provide a high level of income in addition to potential for capital growth utilizing a combination of preferred stock shares, high-dividend-paying equities, and select bonds.
The fund is suitable for clients needing current income and/or desiring greater returns than money market funds and short term bonds with much lower expected volatility than the equity markets.
•Dividend set annually and paid monthly, providing a stable income stream to client accounts.
For 2011, the dividend will be set at 3.6%.
•Superior current income yield on the portfolio of approximately 5.1% gross of management fees in addition to potential for capital growth targeting a 5%+ total net return.
•Offers higher-than-market income but with an overall investment grade portfolio.
•5 year U.S. Treasuries yield 1.76% as of June 30, 2011.
•10 year U.S. Treasuries yield 3.16% as of June 30, 2011.
•S&P 500 average yield is 1.93% (drops to 1.35% after non-resident withholding taxes).
•Asset allocation will be actively managed using a combination of common stock, preferred stock and select bonds.
Bryan Dooley, Portfolio Manager with LOM Asset Management Limited said, “Recently, we’ve found that two of the greatest concerns for clients are minimizing market volatility and generating a reasonable level of income and growth in a world of diminishing returns on bonds and money market accounts. As a local institution with a strong portfolio management team we designed a unique investment solution which we believe will help our clients to achieve both of these goals.”
The LOM Group is a publicly-held, international financial services company, providing a complete range of investment services and products through its regulated subsidiaries in Bermuda and Bahamas, including Lines Overseas Management Limited, LOM Securities (Bermuda) Limited and LOM Securities (Bahamas) Limited. In business for nearly 20 years, the LOM Group today has nearly $1 billion in client assets under administration and provides brokerage, asset management, and corporate finance services to its primarily high net-worth individual and institutional customers in over 75 countries around the world. LOM is publicly listed on the Bermuda Stock Exchange (symbol LOM BH). The consolidated group is debt-free and has shareholder’s equity of over $18 million.