Matrix Income

Our Matrix Income portfolio has a shorter time horizon than equity portfolios and is designed to achieve an estimated numerical rate of return. This rate will change with market conditions and is not tied to a market index such as the S & P 500. These portfolios are intended to produce a higher rate of current income than traditional bond, equity, or balanced portfolios while having less market price risk. At the same time, they present opportunities for capturing modest capital gains. In current market conditions, it appears that 7% to 9% total return is a reasonable objective.

Assets are invested primarily in 'pass through' instruments: well established types of exchange traded securities which distribute substantially all of their current earnings to shareholders and do not pay corporate income tax. Examples of such instruments include high quality master limited partnerships, real estate investment trusts, closed end fixed income funds, royalty trusts, and loan participation funds. We use all of these instruments at various times within an economic cycle to produce consistent stable returns. Other instruments such as common stocks or open end mutual funds may be used occasionally when they contribute to the strategy. Portfolios are tailored to meet the requirements of both taxable and non-taxable clients.

We believe that Matrix Income investing offers a fresh alternative for foundations, endowments, and charities as well as individuals. The relative high current income can be used for current expenditures while we strive to increase the value of the portfolio sufficiently to offset inflation and thereby set the stage for increases in current income.