The inclusion of low-yielding sectors may seem out of place in our Equity Income Portfolio, but we believe it's a critical component for a portfolio to balance a high current income with solid total returns.
The question we hear most often about the Sector Specific segment is: why include these exposures, and how are they best managed?
Our answer: Targeted sector exposure is a key differentiator. It helps mitigate concentration risk and adds balance to performance across market cycles. In fact, our Sector Specific segment has accounted for 36.4% of returns since January 2021, and as market leadership has narrowed, it's driven 42.4% of YTD returns.
