Commentary: September 30, 2020
• The GC Income Fund continues to perform well throughout this year and through the pandemic crisis. The fund return is 3.6% through the end of September 2020. Each of the underlying portfolios and their respective managers have seen positive returns this year.
• The GC Loan portfolio continues to provide steady returns of 2.6%. Falling interest rates will put some downward pressure on yields in the near term.
• The New Century fixed income portfolio has risen 4.0% YTD. It has benefitted from falling interest rates this year and the support of the bond markets from the Federal Reserve. With the Fed expected to keep a lid on rising rates, the portfolio should continue to benefit from its focus on high quality
corporate bonds and agency bonds.
• The Westwood balanced portfolio has risen 3.6% YTD in spite of the equity market declines in February and March. The high quality portfolio has performed well during the downturn early in the year and remains positioned defensively.
The GC Income Fund is oriented towards generating current income and providing a consistent return each year. The fund may also provide long term appreciation of capital with less volatility than the equity markets.
The fund investments are primarily in fixed income securities and instruments that provide steady income into the portfolio with about 70% – 80% of the portfolio. The remaining part of the portfolio invests in US equities, preferred shares and other trusts.
Managers and Portfolios
The fund holds three portfolios managed by three managers utilizing different investment strategies, which are complementary to each other.
GC In-house Loans: 20% – Home mortgages for GC and NAD employees.
New Century Advisors – Fixed Income: 40% – Short and medium term fixed income securities with an average rating of A and an average maturity of 1.8 years. The portfolio holds mostly US Agency and Corporate bonds.
Westwood Management Corp – Income Opportunity: 40% – A blend of fixed income and equity securities, to generate total return with lower volatility and selected for their high quality, but undervaluation by the market.