Fixed Income
The key to success is to have a well-diversified portfolio that takes into account your individual needs and objectives. You should also seek out investments with attractive yields and favorable credit ratings. Additionally, it’s important to stay informed of the latest developments in the fixed income market, including changes in interest rates and default rates.
We focus on delivering attractive risk-adjusted returns by actively managing our portfolios and taking advantage of opportunities in the market. We also provide our clients with access to a variety of passive strategies that aim to track the performance of specific indices.
Why an active approach?
An active investment approach involves taking a more hands-on approach to managing your investments. This means researching, selecting, and actively managing the investments in your portfolio. This can include regularly rebalancing your portfolio to ensure it remains in line with your goals, monitoring performance, and making changes as necessary. Active investors also look for opportunities to take advantage of market conditions or new investment products.
The key difference between active and passive investing is that active investors take an active role in managing their portfolios while passive investors simply buy and hold their investments for the long term without making any changes.
Risks
Risks associated with investing in fixed income include interest rate risk, credit risk, liquidity risk, and inflation risk.
- Interest rate risk is the potential for losses when interest rates rise. As rates rise, the value of existing bonds decreases.
- Credit risk is the possibility that a borrower may default on its debt obligations. This can lead to a loss of principal if not managed properly.
- Liquidity risk is the potential for difficulty selling a bond in a timely manner or at an acceptable price due to lack of market demand.
- Inflation risk is the chance that rising prices will erode purchasing power over time. This can lead to losses if not managed properly.
By investing in bonds, you can spread your investments across different types of assets, reducing your overall risk. This is known as diversification and is key to any successful investment strategy.
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