How income works in a low interest rate reality

A recipe for returns and sustainable yield with Leith Wheeler’s Jim Gilliland

Michael Ryval 19 December, 2019 | 1:15AM
Facebook Twitter LinkedIn

Waterfall

Fears of a global recession, which began in 2018, are beginning to crest, argues Jim Gilliland, president and CEO of Vancouver-based Leith Wheeler Investment Counsel Ltd. Yet interest rates have also declined appreciably, making it more challenging to generate income for investors.

“We were in a manufacturing-led slowdown in 2019, which is not that dissimilar from the slowdowns in 2011 and 2015,” says Gilliland, lead manager of the 3-star rated $76.8 million Leith Wheeler Income Advantage Fund. “In each of those [slowdowns], we were fortunate that they were not substantive enough to cause a significant retraction in terms of employment. We are now far enough into the slowdown that we are gaining confidence that it will be a similar result. Meanwhile, central banks have moved from tightening to easing and are much more stimulating in terms of supporting economies.”

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free
Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Canadian Tire Corp Ltd Class A195.26 CAD0.00Rating
Leith Wheeler Income Advantage Sr F11.38 CAD-0.33Rating
Royal Bank of Canada127.66 CAD0.00Rating
TELUS Corp28.72 CAD0.00Rating
The Toronto-Dominion Bank82.48 CAD0.00Rating
Toromont Industries Ltd105.21 CAD0.00

About Author

Michael Ryval  

© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies