NPFI

NPFI offers niche exposure to preferred securities and other income-producing securities. It may invest in all types of preferred securities, including perpetual preferred and hybrid securities, although it primarily focuses on preferreds catered to institutional investors. These institutional securities, also known as "$1,000 par preferred securities", are generally issued in large lot sizes by US and non-US financial services firms and typically trade over the counter. The fund may also invest in other income-producing securities, such as CoCos and convertibles. The fund aims to primarily hold investment grade securities, capping high-yield exposure to 20%. The fund expects to have significant exposure to the financial services sector. It typically allocates at least 40% in USD-denominated securities issued by non-US companies. To build the portfolio, the fund adviser looks for the most attractive mix of value and considers several factors, including credit risk, diversification, preferred sub-market analysis, call protection, and yield curve analysis.