Overview of Fixed-Income Portfolio Strategies

Frederick Eugene “Fritz” Mowery holds a bachelor of business administration in economics/finance. He is currently studying at Dallas Baptist University to earn a master’s degree in Theology/Apologetics. As the President of Mowery Capital Management, LLC, Fritz Mowery is responsible for his customers' fixed-income portfolios.

A fixed-income portfolio includes investment securities that pay interest at a fixed rate until maturity. Certificates of deposit (CDs), treasury bills, and government-issued bonds are types of fixed-income securities. They're usually low-risk with pre-established interest.

Fixed-income investing techniques include bond ladder investing. This technique concentrates on diversifying a portfolio by acquiring fixed-income securities of varying maturity dates in a ladder-like manner. Such a diversified portfolio reduces risk and gradually gains in value as a result of bonds that mature in a staggered manner—usually between one and four years.

Bullet bond portfolio investing involves creating a portfolio by acquiring fixed-income securities at varying dates but with similar maturity dates. It enables diversification of a portfolio while working to ensure favorable future returns.

Barbell bond portfolio investing involves creating a portfolio with only short-term and long-term bonds. This strategy's most important characteristic is focusing on the portfolio's short-term bonds and reinvesting their returns after maturity. A barbell portfolio short-term bond has a maturity of below or equal to five years while long-term bonds mature in a decade or more.

A fixed-income portfolio is valuable in facilitating diversification. Moreover, diversification enables the stability of the investment portfolio against price corrections and volatility. This characteristic brings equilibrium where a part of the portfolio undergoes difficulty.

Fixed-income securities also offer profitable returns at a steady rate. With equities, fixed-income securities typically present a lower risk. 

Choosing the Right Investment Fund

Frederick 'Fritz' Eugene Mowery has provided financial asset management services through his company, Mowery Capital Management, Dallas, Texas, for 25 years. Much of Fritz Mowery's success has come through choosing the right investments to invest his clients' funds.

There are thousands of investment companies trying to attract people to invest with them. Here are some ways to evaluate different investment choices and choose the right investment company.

Look out for investment managers that have a long track record and experience..

Go for managers that focus on the long term. Search out managers that are fiduciaries. Avoid managers selling illiquid, high risk limited partnerships.

Compare the management fees.

Check out the investment strategies of these managers. Most successful funds don't stray far from the strategy they used at their start. Consider the implications of your investment on your taxes.

Always make sure the investment manger's style meets with your risk tolerance, time horizon and short and long term goals. Be fully open and honest with your investment managers to help him serve you better. This will help you not double up investments taking undue risks.