Many people are concerned about an income stream as opposed to growth as they get older and get ready for retirement. And these people should think about taking a look at investing part of their portfolio in preferred shares or a preferred share fund. Doug Grieve, chief investment officer at Slater Asset Management Inc., talked to Financial Pipeline co-editor Romina Maurino about the basics of these financial products.
RM: What type of investor would a preferred share fund be best suited for?
DG: It’s best suited for someone looking for fixed income. It’s a fixed income alternative. You can have bonds, debentures and there are different ways you can get fixed income. Preferred shares and in this case, preferred share ETFs, offers you another alternative for fixed income.
RM: Is it somebody looking for long-term investments? It’s not somebody who wants to get in and out quickly and have the money right away?
DG: Well, it’s fixed income, so it’s someone who wants to invest their money, knowing that they’ll get a stream of distribution on an ongoing basis. So it’s an older person, who’s allowing their net worth to be invested to offer an income. So it’s ideal for more of a retired type person.
