GLOBAL FIXED-INCOME
STRATEGY
GLOBAL FIXED-INCOME STRATEGY
The Global Fixed-Income Bond Strategy focuses on investing in a diversified portfolio of bonds from issuers around the world. These can include government bonds, corporate bonds, and other types of fixed-income securities from both developed and emerging markets. The strategy aims to provide a steady income stream, preserve capital, and diversify investment holdings across different geographies.
Key Elements of the Strategy:
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Geographic Diversification: By investing globally, investors can diversify their exposure across various economies and interest rate environments. This could enhance returns and reduce portfolio risk.
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Income Generation: Similar to domestic fixed-income strategies, the global fixed-income strategy aims to generate a steady income stream through regular interest payments made by bond issuers.
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Currency Considerations: Investing in global bonds introduces currency risk, as investments may need to be converted from one currency to another. Currency movements can impact the total return of the investment, either positively or negatively.
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Credit and Political Risk Analysis: We consider both the creditworthiness of the bond issuer and the political risk associated with the issuer's country. This requires thorough analysis and understanding of each country's economic and political landscape where investments are made.
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Active Management: Active management is key in a global fixed-income strategy. We actively monitor global economic conditions, interest rate trends, currency movements, and political events, adjusting the portfolio as necessary.
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Duration Strategy: Duration, a measure of a bond's sensitivity to interest rate changes, is carefully managed in our global fixed-income portfolio. Different countries may be at various stages of the economic cycle, which can influence interest rate movements and bond price volatility.
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Capital Preservation: Fixed-income securities are typically lower risk than equities, offering a level of capital preservation. However, global bonds can carry additional risks, such as currency and geopolitical risks. Therefore, risk management measures are in place to help protect the invested capital.
Summary: The Global Fixed Income Bond Strategy provides an opportunity for income, diversification, and capital preservation while offering exposure to global markets. This strategy can provide potential advantages but has additional complexities, such as currency risk, geopolitical risk, and varying interest rate environments.
At Infinitus Wealth Management, we deliver personalized wealth management strategies that align with your specific financial objectives and individual risk tolerance. Our approach is grounded in a thorough understanding of global financial markets and consistent research, allowing us to construct diverse, resilient, and custom portfolios intended to withstand market volatility while pursuing attractive returns.
We build custom portfolios and offer multiple investment strategies to meet our clients' unique investment goals. We actively manage several US equity, international equity, fixed income, tax-exempt fixed income, and blended strategies ranging from large-cap to small-cap equity and income-generating strategies.
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Asset Allocation: Our investment strategy starts with asset allocation, which we consider the most vital determinant of portfolio returns and risk management. We create a balanced mix of various asset classes, such as equities, fixed income, cash, real estate, and alternatives. The blend is customized to your risk appetite, financial objectives, and investment time horizon.
Diversification: We adhere to the principle of diversification among asset classes and within each asset class. By spreading investments across various sectors, geographic locations, and market capitalizations, we aim to mitigate risk potential.
Risk Management: Risk assessment forms a crucial part of our investment strategy. We continuously monitor and adjust portfolios to manage exposure to market risks. By utilizing advanced risk management techniques and tools, we ensure your portfolio aligns with your personal risk tolerance and long-term objectives.
Tactical Asset Allocation: We go beyond a static allocation approach by employing tactical asset allocation strategies. Our investment team actively adjusts the asset mix in response to short-term market predictions to exploit market inefficiencies or seize new opportunities while maintaining a balance with the strategic asset allocation targets.
Tax-Efficient Investing: Our strategies consider the impact of taxes on your investment returns. We aim to maximize after-tax returns through strategies like tax-loss harvesting, holding investments longer for favorable long-term capital gain rates, and strategically placing investments in tax-advantaged accounts.
Regular Portfolio Review and Rebalancing: Investment is not a one-time action but a dynamic process that requires ongoing oversight. We conduct regular reviews of your portfolio to ensure it remains in line with your goals and risk tolerance. Rebalancing, when necessary, helps maintain the desired level of risk and return.
At Infinitus Wealth Management, we understand that every client's investment journey is unique. As such, we don't offer a one-size-fits-all strategy but instead customize each portfolio to suit your individual needs and preferences. Our team is committed to working closely with you, providing the guidance and resources necessary to navigate the complex world of investing and to help your wealth grow and persevere over time.