FIXED INCOME PORTFOLIO
We take the concept of safety very seriously. Our team manages the Fixed Income Portfolio with safety as a top priority while also providing investors with a steady and predictable stream of income.
We do not take unnecessary risks with our clients' investable assets that we have agreed should remain insulated from market risks and volatility. Instead, we prioritize a conservative approach that limits duration and inflation risks by implementing a ladder strategy.
What is a ladder strategy?
A ladder strategy is a way of building a portfolio of fixed income securities with different maturity dates. For example, instead of buying one bond that matures in 10 years, you could buy 10 bonds that mature in 1, 2..., and 3 years. This way, you create a "ladder" of bonds that mature at regular intervals.
A ladder strategy has several advantages:
- It provides you with a consistent and reliable source of income, as you receive interest payments from your bonds throughout the year.
- It reduces the impact of interest rate fluctuations on your portfolio, as you have bonds with different sensitivities to rate changes. When rates rise, the value of your existing bonds may decline, but you can reinvest the proceeds from your maturing bonds in new bonds with higher yields. When rates fall, the value of your existing bonds may increase, but you can still enjoy the higher yields from your longer-term bonds.