Fixed Income Analysis – If you aren’t using this report, you should!

Published by Marshall Smith, CIPM, Managing Director - General Manager, Products
September 12th, 2016

For investment managers with goals of generating consistent income, preserving capital, or moderating risk, fixed income securities are likely an essential part of your strategy.  As more and more baby boomers retire, their portfolios will transition with a larger portion dedicated to generating income to support their retirement goals.  For managers who invest in individual fixed income securities, your conversations have likely shifted away from growth and the S&P500 to when the client’s money will run out. 

First Rate’s Fixed Income Analysis can help you have value added and goal based conversations with your customers.  In many cases, investment advisors manage this portion of the portfolio by using a bond ladder strategy.  The goal is to keep duration and maturity in check to produce consistent income.  The Fixed Income Analysis report can help you communicate the value you add for your client.  The top portion of the report demonstrates the duration, coupon, yield to maturity, maturity and current yield of the fixed income portion of the portfolio over 4 different snapshots in time.  This can be helpful in demonstrating that this is not a “set it and forget it” strategy but can reinforce that you are continuing to manage the fixed income portion of the portfolio against duration, maturity and income goals.

The bottom portion of the portfolio breaks down your fixed income allocation by quality and maturity.  By graphically representing the quality, you can demonstrate the amount of risk being taken in order to capture the income goal.  Likewise, the maturity allocation graph can graphically represent if there are any balancing issues or strategies being deployed to meet the client goals.

Whether you are managing portfolios for private clients or institutions, the Fixed Income Analysis report can help you better demonstrate your value.

If you are interested in making Fixed Income Analysis a part of your branded client reporting package, contact your Client Service Manager below. If you do not know your Client Service Manager, contact us and we can help you out!

  • Kate Baird – kbaird@firstrate.com
  • Jeanne Benson – jbenson@firstrate.com
  • Rob Bethmann – rbethmann@firstrate.com
  • Keith Lotz – klotz@firstrate.com
  • Layne Wharton – lwharton@firstrate.com

We look forward to hearing from you!

Fixed Income Analysis

 

About the Author: Marshall Smith CIPM, Managing Director of Service Bureau, has been with First Rate since 2006. In this role he oversees Service Bureau, the business line responsible for clients that outsource their performance processing function, develops and maintains client relationships, and develops strategic planning for all Service Bureau operations. In addition, he leads First Rate’s Marketing team. You can follow Marshall on Twitter @1stRateMarshall, or connect via LinkedIn.

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