Fixed Income
Hollencrest's Fixed Income Process [as diagrammed in Figure 1 below] effectively incorporates a focus on attributes, allocations, techniques and securities in its assembly of efficient client portfolios.
Attributes:
Hollencrest's Fixed Income (bond) Strategies focus on several attributes:
• Quality: Bond rating
• Yield: Income and capital appreciation opportunity
• Sector: Corporate or business sensitivity
• Geography: Sensitivity to domestic and global fluctuations
• Pricing: Interest rate and option sensitivity (short-term vs. long-term)
Portfolios are tailored to client needs based on their individual risk/return profile, income requirement, and tax exposure. The holdings of each portfolio are determined by the relative attractiveness of the yields available, as well as by the outlook for changes in the level and shape of the yield curve.
Figure 1. Hollencrest's Fixed Income Process
Allocations:
Our Fixed Income (FI) management methodology incorporates municipal, corporate, government, mortgage , and international bonds. The issuers and bonds are monitored on an ongoing basis for extraordinarily positive or negative performance or activity. We offer the following fixed income allocations:
• Municipal Tax-advantaged investments: government and/or state tax free
• Corporate Quality: corporate debt
• High Yield: Special opportunities in High Yield Bonds
• Government: US Government backed securities
• Mortgages: Special opportunities in high income and low loan to value opportunities
• International: Diversification across the other half of the world's capital markets
Techniques:
Within the bond allocations, Hollencrest may incorporate below investment grade (BIG) bonds , leverage , or other bond management techniques for specific client portfolios. In addition , we have the sophistication to offer advice and management for those clients that desire fixed income exposure through options and futures.
Securities:
As appropriate, Hollencrest effectively incorporates individual securities, Exchange Traded Funds (ETFs), mutual funds, structured linked notes and outside managers within specific client portfolios. In addition, we may strategically use fixed income Closed End Funds (CEFs) to add yield and potential capital gains.
