Preferred Shares

Top Reasons for Choosing Addenda Capital to Manage your Preferred Shares

• We have a broad understanding of this asset class with a 20+ year track record of adding value in the Preferred Shares.
• We leverage our extensive corporate credit and equity research experience focused on assessing undervalued securities and avoiding deteriorating issuers.
• We have an ability to capitalize on market events unique to the preferred share market.
• ESG analysis adds a level of consciousness to the investment process that enhances risk mitigation and long term value creation in our portfolios.

We believe that:

• An actively managed multi-strategy approach, driven by fundamental research, applied in a rigorous risk management framework will deliver value for taxable and non-taxable clients over the long term.

Our investment process for Preferred Shares involves several elements:

• An extensive top-down analysis of economic conditions is used for interest rate anticipation which determines the optimal portfolio by structure.
• A rigorous bottom-up fundamental analysis serves to identify issuers with stable to improving credit metrics and earnings profile.
• Identifying market structure dynamics opportunities which includes assessing regulatory changes, supply and demand factors, and optionality within the securities.
• A fundamental assessment of the financial risk of the issuer and the unique risk within the structure of the specific preferred share, with the objective of maximizing return given our outlook for interest rates and credit risk.