Income Investing Strategies to Preserve Principal
The Buffalo High Yield Fund (BUFHX) was included in an article on Seeking Alpha, which analyzed income funds that preserved principal from 2006-2016, making note of the special year-end dividend the Fund pays annually.
“Retirement income investors should always consider whether an investment has proven that it can preserve their precious capital during periods of economic disruption. Achieving that goal requires a solid business strategy executed by competent investment managers. Investors can use price charts that span good times and bad to identify funds that have preserved investment capital.” ~ Thomas Cook, article author
To access the article click here.
Dividend payments are not guaranteed. The chart included in the article illustrates the performance of a hypothetical $1,000 investment made in the Fund on 1/1/2005. It assumes reinvestment of dividends and capital gains. The chart does not imply future performance.
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 value. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained here. Performance data current to the most recent quarter-end may be obtained here.
Opinions expressed are those of the author or Funds and are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice.
References to other mutual funds should not to be considered an offer to buy or sell these securities.
Definitions can be viewed by clicking here.
Using techniques identified in the article, a few income funds are highlighted (including the Buffalo High Yield Fund) that pay regular dividends and preserved investors’ capital during the period before and through the Great Recession.
Director of Marketing
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