We like the steady income and knowing that someone is watching out for our needs.
Bond and bond mutual funds provide benefits that may include:
Today, bond and bond fund investors face many challenges:
Interest rates were low for many years. Low interest rates make it difficult to generate income from bonds, bond funds and other fixed income investments. And when interest rates rise, bond prices usually decline.
Federal funds rate is the target interest rate set by the Federal Open Market Committee (FOMC) at which commercial banks borrow and lend their excess reserves to each other overnight.
Statistic accurate as of March, 2021. Source: St Louis Fed
Learn how we make investments in fixed income to overcome these challenges. For the investment policy committee, our due diligence and investment selection process is sophisticated. For our clients, the decision is simple.
Foundation income is a diverse pool of fixed income and total return investments in mutual funds, electronically traded funds (ETFs) and possibly electronically traded notes (ETNs). Foundation Income uses the research of the Chartered Financial Analysts (CFAs) at Litman Gregory, plus our own investment policy committee.
Foundation Income is diverse. It may invest in U.S. Treasuries, corporate bonds (and other debt investments), foreign companies’ debt, sovereign foreign debt, foreign currencies, floating rate, fixed rate, inflation protected securities, real estate investment trusts (REITs), master limited partnerships (MLPs), and/or absolute return, among other investments.
We are both creative and qualitative when constructing our fixed income portfolio.
We believe the right way to invest is to diversify by strategy. Our team takes the time to gain insight into what decisions are being made, and why. Even more than that, we take time to understand how the decisions are being made. Various investment managers at a particular mutual fund, ETF or ETN have strengths and weaknesses. We want to find a mix of managers who are both confident and humble. Furthermore, we want access to the people making the decisions.
We work hard to find some of the best, highest conviction, most consistent investment minds in the world. Our independence gives us the ability to move quickly, without a conflict of interest, in the best interest of our clients. This process is sophisticated and has taken us decades to develop. But, for our clients, we make the investment decisions simple.
We implement sophisticated decisions simply.
Mutual Funds & ETFs are sold by prospectus. Investors should carefully consider the investment objectives, risks, charges and expenses of the mutual fund or ETF. This and other important information is contained in the fund prospectus which can be obtained from your financial advisor and should be read carefully before investing. Bonds are subject to credit and interest rate risk (when rates rise, bond prices generally fall). The return and principal value of a bond will fluctuate as market conditions change. If sold before maturity, an individual bond may be worth more or less than its original cost.
How we make fixed income investment decisions:
Chat in-person during regular business hours or fill out the form!
Our financial advisors can meet with you at our Lone Tree office or any location in the greater Denver area including Greenwood Village, Littleton, Centennial or Englewood.
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