Preferred Stocks Webinar by Sr. Portfolio Manager JR Humphreys, CFA, CAIA
INDIANAPOLIS, Nov. 2, 2023 /PRNewswire/ — Innovative Portfolios Senior Portfolio Manager JR Humphreys, CFA, CAIA and CIO Dave Gilreath, CFP® offered CE credit to registered investment advisors for a one-hour webinar on Preferred Stocks on Thursday, October 5th, to launch the company’s new “Think Innovative Investing” Educational Series.
As portfolio manager for Innovative Portfolios’ Preferred-Plus ETF [IPPP], JR has extensive experience working with Preferred stocks and understanding how they operate. The complexity and niche nature of Preferreds presented a variety of topics to cover during the webinar, including:
- Characteristics of Preferreds
- Types of Preferreds
- Risks & Benefits of Preferreds
- Techniques for Managing Interest Rate Risk
- Passive vs. Active Management of Preferred Stocks
Leading up to the webinar, the Educational Series offered a series of emails touching on several of the topics being covered in-depth during the webinar. Investment advisors received a high-level overview of each topic with links to outside resources for detailed information, such as JR’s white paper about the impact of passive management on Preferred Securities and his co-authored Op-ed in CNBC, “Fear creates growth opportunities in preferred stocks.”
When talking about the choice to focus on Preferreds for Innovative Portfolios’ first Educational Series, JR said, “Often when investors are seeking income, they very rarely look at Preferreds. And Preferred shares is an often-overlooked asset class with many potential benefits that I believe investors should seriously consider.”
About Innovative Portfolios, LLC:
Based in Indianapolis, Indiana, Innovative Portfolios provides strategic investment solutions to RIAs and institutional clients throughout the United States. As of 9/30/2023, AUM for the firm and its affiliates totaled $1.55 billion. Innovative Portfolios Principal Dave Gilreath is a contributor of investment commentary to CNBC.com, ThinkAdvisor, Medical Economics, and FA Financial Advisor. Visit innovativeportfolios.com for more information.
Disclosure:
Innovative Portfolios, LLC is investment advisor to Dividend Performers ETF and Preferred-Plus ETF.
Carefully consider the Fund’s investment objective, risk factors, charges and expenses before investing. This and additional information can be found in the Dividend Performers ETF and Preferred-Plus ETF prospectus, which can be obtained by calling 800-617-0004 or by visiting innovativeportfolios.com. Please read the prospectus carefully before investing. Dividend Performers ETF and Preferred-Plus ETF are distributed by Foreside Fund Services, LLC.
Investing involves risk, including possible loss of principal.
Derivative Securities Risk: The Fund invests in options that derive their performance from the performance of the S&P 500 Index. Derivatives, such as the options in which the Fund invests, can be volatile and involve various types and degrees of risks, depending upon the characteristics of a particular derivative. Derivatives may entail investment exposures that are greater than their cost would suggest, meaning that a small investment in a derivative could have a substantial impact on the performance of the Fund. The Fund could experience a loss if its derivatives do not perform as anticipated, or are not correlated with the performance of their underlying asset or if the Fund is unable to purchase or liquidate a position because of an illiquid secondary market. The market for many derivatives is, or suddenly can become, illiquid. Changes in liquidity may result in significant, rapid, and unpredictable changes in the prices for derivatives.
Dividend Paying Security Risk: Securities that pay high dividends as a group can fall out of favor with the market, causing these companies to underperform companies that do not pay high dividends. Also, companies owned by the Fund that have historically paid a dividend may reduce or discontinue their dividends, thus reducing the yield of the Fund.
REIT Risk: Investment in real estate companies, including REITs, exposes the Fund to the risks of owning real estate directly. Real estate is highly sensitive to general and local economic conditions and developments.
Preferred Security Risk: Preferred securities generally are subordinated to bonds and other debt instruments in a company’s capital structure and therefore will be subject to greater credit risk than those debt instruments. In addition, but not limited to, preferred securities are subject to other risks, such as being called by the issuer before its stated maturity, subject to special redemption rights, having distributions deferred or skipped, rising interest rates causing the value to decline, having floating interest rates or dividends, and having limited liquidity. Preferred securities that do not have a maturity date are perpetual investments.
SOURCE Innovative Portfolios
