Archive for the ‘Fixed Income’ Category

Today many investors are living longer and need greater income to offset the cost increase to daily life.  Superannuation is the term used to describe outliving your income.  This is one of the most important areas that a professional investment manager can help avoid.  Higher yields generally means greater risk, with that risk comes the potential loss of principal.  How you manage this risk and what criteria you use to own income producing securities will make the difference between executing your strategy and losing principal.  Please see what a professional can do for you.  We have been successful at generating income many times greater than what many investors think is possible.

With current interest rates low and corporations profits under pressure, it is time to look at high yield corporate bonds.  These securities pay higher rates of interest. These higher rate give your portfolio some  protection from interest rate increases. Ask us at Fogel Capital about our high yield portfolio.

At Fogel Capital Management we provide all guardianship accounts with annual accountings, which are ready for submision to the court system.  With a very quick review you can eliminate all of the detailed accounting work associated with being Guardian.  We will customize your report to meet the standards of any court system or examiner.

Our management fees are tax deductable and for fixed income portfolios we implement a strategy of purchasing bonds that have a high probability of being pre-refunded. This strategy allows us to sell these securities when they do become refunded and add performance to the account. It also allows for greater flexibility and liquidity in the account. This strategy harnesses the true aspect of investment management.

Fixed income securities are debt instruments such as U.S. Government Treasury-bills, mortgage-backed, municipal obligations, corporate bonds, and preference issues. Bond selection criteria include:

• Taxable or non-taxable
• Agency rating (e.g. Moody’s, S & P)
• Current yield, maturity, and yield to maturity
• Forecasted expectation of interest rates

Additional characteristics considered are out-of-favor sectors and categories where higher yields weight against relative uncertainty. Daily monitoring and market comparisons of yield-to-price permit upward-value exchanges of particular bonds while reducing risks. Position size in individual bond ranges from 1% to 20% depending on portfolio size, investor goals, market risk, and liquidity requirements agreed between the client and the manager.