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For decades, investment advisers have served their clients well by using the classic 60/40 rule as a starting point for portfolio diversification. But it may be time to reconsider the traditional asset allocation model. This investment brief explores how investors may substitute a slice of their bond allocation to improve returns without moving too far up the risk spectrum.
The Reaves Dividend Income Strategy returned 4.2% in the second quarter, bringing year-todate returns to 7.7%. The portfolio’s dividend yield, as of 6/30/21, was 4.0%; four out of nineteen portfolio holdings1 increased dividends by an average of 7.6% during the quarter. Within the strategy, real estate and communication services were strong performers in the quarter, while utilities were slightly negative.
The Reaves LTV Wrap Composite returned 5.6%, gross of fees, in the second quarter of 2021, bringing the year-to-date return to 7.7%, gross of fees. REITs and communications were strong positive contributors in the quarter, while utilities and industrials generated a slightly negative return.
Reaves Asset Management has over four decades of experience investing in publicly listed equities. Reaves is a privately held, independently owned company. Q2 2021 Reaves Long Term Value Strategy Fact Sheet.
Reaves Asset Management has over four decades of experience investing in publicly listed equities. Reaves is a privately held, independently owned company. Q2 2021 Reaves Dividend Income Strategy Fact Sheet.
The Reaves LTV Wrap Composite gained 1.9%, before fees, in the first quarter of 2021. This is compared to a gain of 6.2% for the S&P 500 Index. Beneath the surface of the strong market performance was a quarter characterized by high volatility and rapid rotation.
Reaves Asset Management has over four decades of experience investing in publicly listed equities. Reaves is a privately held, independently owned company. Q1 2021 Reaves Long Term Value Strategy Fact Sheet.
Reaves Asset Management has over four decades of experience investing in publicly listed equities. Reaves is a privately held, independently owned company. Q1 2021 Reaves Dividend Income Strategy Fact Sheet.
Does infrastructure have a role to play in your clients’ portfolios? We discuss this topic in a webinar hosted by Havener Capital Partners.
Reaves Asset Management has over four decades of experience investing in publicly listed equities. Reaves is a privately held, independently owned company. View the Q4 2020 Reaves Long Term Value Strategy Fact Sheet.
In 2020, Reaves’ LTV Wrap Composite performed in line with what one may have expected from a defensive equity strategy in a year that included a global pandemic, a market crash, record high unemployment, and a disputed presidential election. Most companies in the portfolio grew earnings and raised dividends despite the challenges during the year, highlighting the essential nature of their services and the potential to remain profitable through the economic cycle.
Thousands of strategies. Hundreds of questions. Investment due diligence isn’t easy. We want to simplify it for you. Here are the answers to the most common questions advisers and consultants ask us during the due diligence process.
Investing in infrastructure companies using an essential service approach may help reduce downside risk in portfolios. We explain in this paper.
Understanding and navigating inefficiencies in the utilities sector.
How does investing in infrastructure companies provide natural downside protection? Reaves Asset Management CEO Jay Rhame explains.
Let us make your due diligence easier. If any Reaves Asset Management strategies are on your radar, we’d be happy to coordinate a call with a portfolio manager.
In today’s market investors are looking for a defensive equity strategy with growth opportunity. Reaves Asset Management offers both. Sign up today to receive our market insights delivered to your inbox.
Reaves’ LTV Strategy Wrap Composite returned 8.7% in the third quarter of 2020, improving the year-to-date return to -2.4%. Excluding any de minimus positions, all segments of the composite were positive in the quarter, led by railroads, cable broadband, and utilities focused on renewable energy development. This last group is something we focus on in more detail below.
In the second quarter, the Reaves LTV Strategy Wrap Composite recovered a portion of last quarter’s COVID-induced decline. The advance was uneven, with growth stocks substantially outperforming defensive and value-oriented companies. Companies with visible long-term growth and economic re-opening stories were the winners.
Reaves Asset Management strives to invest in companies that we believe will be steady in good times and bad. We take comfort in knowing that essential electric, gas, water, and communications services will continue to be utilized even during this period of extreme economic disruption from the COVID-19 pandemic.
We are pleased to report that the Reaves Long Term Value Strategy (LTV)1 had a strong year in 2019 advancing by 31.4% gross of fees and 28.2% net of fees.
Reaves Institutional Composite appreciated for the third consecutive quarter thanks to strong performance from holdings in the utilities and communications sectors.
Reaves Institutional Composite had another strong quarter. The composite returned +4.1%, net-of-fees, in the second quarter of 2019, outperforming its benchmark return of +1.3%.
The first quarter of 2019 was Reaves’ third best quarter in our 41-year history of managing equity portfolios. Our institutional composite returned 15.8%, net of fees, with all sectors generating positive double-digit performance.
At the beginning of 2018, investment strategists forecasted rising interest rates, strong economic growth and accelerating corporate earnings because of the federal tax cut. The conclusion was to sell utilities.
One of the main reasons for Reaves’ historical outperformance is a contrarian investment philosophy – we look for growth in areas where investors typically focus on yield. When buying utilities, a manager is often making a macro decision, not a fundamental company decision.
The ERISA Composite returned 6.67%, net of fees, during the second quarter, outperforming both Reaves’ custom equal-weighted benchmark and the S&P 500 Index returns of 5.38% and 3.43%, respectively.
The ERISA Composite returned -4.3%, net of fees, in the first quarter which trailed the -0.8% return of the S&P 500 Index. Our investments in communications stocks struggled due to investor concerns about merger and acquisition activity and video subscription levels at cable TV companies.