Income Opportunity Fund (WHGIX) (as of 3/24/2017)

Investment Strategy

Combining a variety of income producing asset classes in a single fund helps mitigate risk while seeking to provide an attractive total return.

The Income Opportunity Fund invests in 60-80 high-quality dividend and interest-paying securities from a wide variety of asset classes. Combining multiple types of income producing equity and fixed income investments may reduce overall volatility when compared to investing in a single asset class, provide greater yield potential than traditional investment grade bond funds, and provide the opportunity for capital appreciation. The Fund invests and allocates among:

  • Dividend paying common stocks
  • Preferred stocks
  • Convertible preferred
  • Real estate investment trusts (REITs)
  • Master limited partnerships (MLPs)
  • Royalty Trusts
  • Bonds (Government, Corporate and Treasury Inflation-Protected Securities/TIPS)
  • Money Market Instruments

Tactically Adjusting the Fund's Portfolio

Re-allocating among diverse asset classes can improve the opportunity for an attractive total return while dampening volatility. The investment team has the flexibility to adjust the Fund’s asset allocation in order to benefit from changing market conditions. Market volatility offers the ability to capitalize on individual investments when they become under- or over-valued relative to another investment. The investment team selects securities for the Fund by continually evaluating recommendations approved by Westwood’s four Research Groups and assessing a security’s fit within the current portfolio. Allocation adjustments are made based on bottom-up fundamental analysis of the reward/risk profile of individual securities coupled with relative value analysis among capital instruments and each asset class.

An Emphasis on Risk Management

In the pursuit of protecting capital, high quality securities may provide a cushion during periods of market weakness. Consequently, the Fund focuses on securities of well-established companies with strong and improving cash flow that is sufficient to support a sustainable or rising income stream for investors. In addition, the Fund favors companies whose prospects for future profitability are significantly stronger than what the current stock price reflects. The Fund’s fixed income securities are, in aggregate, investment grade (but may, at times, include securities rated below investment grade).

Growth of a $10,000 Investment

Assumes an initial investment of $10,000 was made on the fund's inception date of December 19, 2005.

The growth of a $10,000 investment in the fund is hypothetical and for illustration only. It does not represent any actual investment.


Objective

The Income Opportunity Fund's primary objective is to provide current income. As a secondary objective, the Fund seeks long-term capital appreciation.

Fund Facts

Ticker Symbol WHGIX
Fund Inception December 19, 2005
Total Holdings (as of 12/31/2016) 68
Expense Ratio (gross) 0.90%
Benchmark Blended Benchmark
CUSIP 0075W0775
Distribution Frequency Quarterly

Read more on Westwood's Investment Process

Asset Allocation for the Westwood Income Opportunity mutual fund allocation

Fund Performance (as of 3/24/2017)

  Inception date YTD 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
WHGIX 12/19/2005 3.53% -2.57% 9.10% 14.49% 7.95% 7.10% 13.77% 12.18% -4.58% 0.43% 12.60%

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted.

Click here to view the performance of this fund.

A company may reduce or eliminate its dividend, causing losses to the fund

Diversification does not protect against market loss

PORTFOLIO TEAM

We manage the Fund using a team-based system. Ultimately, the entire Portfolio Team is responsible for all aspects of the portfolio.

Mark Freeman, CFA

Mark R. Freeman, CFA

Executive Vice President
Chief Investment Officer
Portfolio Manager

Todd Williams, Senior Vice President

Todd L. Williams, CFA

Senior Vice President
Portfolio Manager

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