- The role of fixed income within a portfolio is typically to:
1. reduce overall portfolio risk
2. provide an ongoing, reliable income source or
3. provide a combination of both.
- Each investor’s needs, goals and expectations are different. We examine your current fixed income investment policy and determine if it accurately reflects your individual investment goals.
- We ensure that your fixed income holdings adhere to the same academically based, disciplined investing principles that we recommend for your other investments.
- We keep in mind the tax consequences (where applicable) and make certain your Fixed Income is managed using tax- and cost-saving techniques.
- We maintain your fixed income investments are structured for appropriate overall strategy, quality, callability, and appropriate diversification.
While lower grade fixed income investments (bonds etc.) have higher expected returns than higher (investment grade) obligations and bonds, we believe that the risks taken to purchase these investments is not sufficiently rewarded by the additional premiums received.
We would rather minimize the portfolio risk by keeping the maturities shorter and the credit qualities higher. In short we aim at optimizing returns, while minimizing the risks associated with investing.
Fundamental’s status as a Registered Investment Advisor rather than a broker-dealer, and our overall fee-only structure, means we will not add markup fees on individual fixed income purchases. In direct contrast with the typical brokerage services, Fundamental’s approach eliminates potential conflict of interest in our purchase recommendations and enables us to pass directly to you any cost savings achieved on your bond investments.