Linden Thomas & Company Private Fixed-Income Tailored Portfolios
One of the biggest disadvantages of fixed-income mutual funds is the pooling of investors, as well as pricing disadvantages of individual securities which can negatively impact both investor yields and total return results.
Through Linden Thomas & Company's tailored yield-focused bond portfolio discipline, each portfolio is built and managed specifically to our client’s yield needs. Each portfolio security, whether corporate, municipal, or government bond, is purchased with a focus on maximizing yield and giving our affluent clients direct ownership.
The benefits of direct ownership include investor control, minimized annual cost, and maximized annual income. When income is maximized, this allows for higher compounding prior to and upon retirement and reduces the drawdown of equities. Fixed income also mitigates downside exposure to equities.
Unlike bond ETFs or mutual funds that aren't managed individually, they offer little benefit because of pooled investing. Our fixed-income tailored portfolios are built based on customers' unique needs. They are developed to maximize both yield and total return results. Because our private clients' bond portfolios are held in their accounts directly, income is paid directly. This has a benefit to both pre-retirement and retirement clients.
Income is produced regularly and reinvested into other fixed-income securities to enhance compounded results.
Income paid out monthly goes toward covering living expenses. This minimizes the need to draw down other areas of the portfolio like equities, giving retired investors potential for growth.
Linden Thomas & Company fixed-income portfolios fall into four categories:
- Investment-grade corporate bonds
- Yield focused corporate bonds
- Municipal bonds - tax free/taxable
- Government and government-backed bonds
8 Principles that Add Benefits to our Yield Focus Tailored Fixed Income:
Unlike bond products sold by retail investment advisors, the Linden Thomas & Company fixed portfolios avoid:
While managing bonds separately for our clients may take more time to manage, the benefits can't be measured."
~ Stephen L. Thomas