Enhanced Income

The Brandes Enhanced Income Strategy seeks to achieve current income and long-term capital appreciation in excess of its benchmark (70% Bloomberg U.S. Aggregate Bond Index and 30% S&P Developed $25 Billion Plus Index) by investing primarily in a combination of equity and fixed income securities of both U.S. and non-U.S. issuers. It primarily invests in United States government and agency debt, corporate debt obligations, and cash equivalents, plus equity securities of issuers whose market capitalization ranks in the top 250 companies worldwide.

Overview

Why Enhanced Income?

  • Flexibility: The strategy is designed for income-oriented investors who are also seeking potential long-term capital appreciation in a diversified portfolio of stocks and bonds.
  • Experience: Brandes has been navigating global equity markets for over 40 years and the fixed-income investment landscape for over 20 years.
  • Focus: The strategy primarily invests in fixed-income securities and has an allocation to mega-cap stocks with generally attractive dividend yields. Holds a position in the Brandes Separately Managed Account Reserve Trust (SMART).

Performance

As of Jun 30, 2024 | Reporting Currency: USD

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Source: Brandes, Bloomberg Indices, S&P. Total return – net and gross of management fees. Periods of greater than one year have been annualized. Past performance is not a guarantee of future results. The strategy uses a blended primary benchmark of 70% Bloomberg U.S. Aggregate Bond Index and 30% S&P Developed $25 Billion Plus Index (rebalanced daily). It is not possible to invest directly in an index. GIPS® Report available in Resources section below.

Portfolio

Data displayed as of Jun 30, 2024

Top 10 Corporate Holdings (%)

Issuer %
Wells Fargo & Co 3.5
CVS Health Corp 2.3
T-Mobile US Inc 1.9
Meta Platforms Inc 1.9
Imperial Brands PLC 1.6
TotalEnergies SE 1.5
FedEx Corp 1.4
Sanofi SA 1.4
DBS Group Holdings Ltd 1.4
SAP SE 1.4
% of Portfolio 18.3
Portfolio holdings are subject to change at any time at the discretion of the investment manager.
Swipe to View Top 10 Holdings

The Brandes Enhanced Income Composite seeks to achieve current income and long-term capital appreciation by investing primarily in a combination of undervalued equity and fixed income securities of both U.S. and non-U.S. issuers. The composite primarily invests in United States government and agency debt, corporate debt obligations, and cash equivalents, plus equity securities of issuers whose market capitalization ranks in the top 250 companies worldwide. The typical proportion of equity to fixed income securities is expected to be 30% equity to 70% fixed income. The composite may invest in a mutual fund (Separately Managed Account Reserve Trust, or “SMART”) that is available only within the Brandes Income Strategies program. Generally SMART is predominantly invested in corporate debt, including non-dollar denominated and non-investment grade debt obligations, but may invest in other types of securities as well. The firm believes this fixed income composite to be aggressive with regard to certain risks, especially credit risk. Generally, no more than 10% of the value of the composite’s total assets, measured at the time of purchase, may be invested in securities of companies located in emerging and frontier countries throughout the world.

SMARTBrandes Separately Managed Account Reserve Trust is a registered investment company offered by Brandes.

The typical proportion of equity to fixed income securities is expected to be 30% equity to 70% fixed income. While we have some flexibility to vary this proportion, and market price action may also impact the ratio, the equity proportion of the strategy is likely to remain in the range of 25% to 35%. Not all investment strategies are suitable for all investors. 

Enhanced Income Index (rebalanced monthly): 70% Bloomberg U.S. Aggregate Bond Index, 30% S&P Developed $25 Billion Plus Index with net dividends. The Bloomberg U.S. Aggregate Bond Index is a broad based benchmark that measures the investment grade, U.S. dollar denominated, fixed rate taxable bond market. This index is a total return index which reflects the price changes and interest of each bond in the index. The S&P Developed $25 Billion Plus Index measures equity market performance of the developed markets throughout the world that have market capitalizations greater than $25 billion (USD). The benchmark returns are not covered by the report of independent verifiers.

The portfolio characteristics shown relate to a single account deemed by Brandes to be generally representative of the strategy as of date noted. Not every account will have these exact characteristics. The actual characteristics with respect to any particular account will vary based on a number of factors including but not limited to: (i) the size of t he account; (ii) investment restrictions applicable to the account, if any; and (iii) market exigencies at the time of investment. Data is updated on a quarterly basis.

The results for individual accounts and for different periods may vary. Investors should not rely on prior performance results as a reliable indication of future results. Market conditions may impact performance. The performance results presented were achieved in particular market conditions which may not be repeated. Moreover, the current market volatility and uncertain regulatory environment may have a negative impact on future performance.

Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada. This website may also contain trademarks of other companies.

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