Growth Goals, Income Ballast

We believe that our commitment to fundamental research and our tested investment process allow us to identify the best opportunities across asset classes to meet our objectives. The strategy generally uses a contrarian approach with a quality bias, and it seeks companies whose stocks and other securities appear to be undervalued or out of favor with investors. Our process favors companies that allocate capital well, offer attractive valuations, and have sound corporate fundamentals while avoiding companies that face secular challenges or offer poor risk‑adjusted returns. Our objective is to provide our clients with superior risk‑adjusted returns while also limiting downside risk.

Our approach combines fundamental financial analysis and qualitative investigation of existing and potential investments to provide a consistent framework for evaluating companies and securities. We build the portfolio one security at a time, focusing on individual stock and credit selection as our foundation. This approach enables us to focus on long‑term capital appreciation and strong risk management. Additionally, our flexible approach allows us to invest across asset classes in pursuit of our objectives.

We believe the distinguishing attributes of the Capital Appreciation and Income Fund include:

• Established and consistent investment philosophy and process. Our portfolio management team has decades of experience managing portfolios with a focus on U.S. large‑cap equities, fixed income, and dynamic asset allocation. Through our bottom‑up analysis and fundamental research, we believe we can identify undervalued names that can offer strong risk‑adjusted returns. Our process integrates fundamental and quantitative research to enhance our best thinking and manage risk. We also have the flexibility to invest where we see opportunities, so our asset class weights are largely a byproduct of where we are finding attractive risk‑adjusted returns. Our investment philosophy and process have enabled us to navigate a range of market environments and deliver on our investment objectives.
• Current income, long‑term appreciation. The fund seeks to generate attractive income and long‑term capital appreciation while limiting losses in a market downturn. We dynamically allocate our assets across yield-generating opportunities in fixed income, covered calls, convertible bonds, and preferred securities. This strategy is designed for investors who may value an emphasis on income generation and capital preservation—such as investors who are approaching or are in retirement—without sacrificing the potential for long-term capital appreciation.
• Emphasis on capital allocation. We focus on how productively a company’s management team puts capital to work, whether by reinvesting in its business, buying back shares, or paying dividends. These decisions can have a major impact on a company’s ability to sustain and grow its business.
• Long‑term investment orientation. We are patient investors who emphasize a long‑term business strategy as opposed to near‑term operating results. This outlook allows us to contextualize short‑term concerns and remain focused on the long‑term value of a company’s earnings and underlying fundamentals. This typically results in relatively low portfolio turnover, which can allow for compounding earnings growth and the potential for reduced trading costs.
• Contrarian approach with a quality bias. This fund employs a contrarian approach that allows us to identify high‑quality companies that we believe have been mispriced due to near‑term challenges or overlooked opportunities. We seek to purchase companies with above‑average businesses but without long‑term secular risks. This focus on factors that drive long‑term performance is central to our investment philosophy.
• Breadth and depth of research capabilities. TRPIM has a deep commitment to in‑house research, and we continually develop our research capabilities. The quality and breadth of our research effort provides a critical information edge that supports well‑informed investment decisions. Our ESG specialist teams provide investment research on ESG issues at the company level and on thematic topics. Our Responsible Investing Indicator Model covers approximately 13,000 securities and pulls from datasets that are not in the wheelhouse of traditional financial analysis.