Our Approach
We recognise increasing demand from our clients to diversify their portfolios and consider investment opportunities outside of traditional banks, to generate additional, steady income streams, from their cash.
By working closely with our clients, we align investment opportunities with their goals, strategies, and risk profiles, while offering insights to adapt to changing markets.
Our portfolio of fixed-income securities focuses on short-term opportunities in specific markets, which yield generous returns. The providers of each bond maintain an unblemished track record of paying investors back in full, and on time, whilst extensive due diligence is carried out before onboarding.
Further information can be provided on each provider and association bond upon request.
During volatile market conditions, diversification is key to safeguarding investments and ensuring long-term, sustainable growth.
Fixed Income Strategies
In 2022, the global fixed-income market exceeded $122.6 trillion and over the last decade, it has consistently represented a significant proportion of pension fund assets, playing a pivotal role in steady asset growth for millions in their retirement journey.
Typical fund allocation
Institutions worldwide adjust their approach to fund allocation based on the risk profiles of their clients and prevailing global market conditions. However, according to recognised sources such as Vanguard, Citibank, and other institutions, Fixed income typically constitutes a larger proportion of asset allocation compared to other classes, reflecting its role as a more stable and lower-risk investment option.
Conservative Allocation
(Focus on preserving capital with lower volatility)
Balanced Allocation
(Blend of growth and income for moderate risk tolerance)
Aggressive Allocation
(Focus on high growth with higher risk tolerance)
*Sources, Vanguard and Citi Bank, personal investor and institutional client research.
Advantages of Fixed income strategies
Higher Returns
Higher returns compared to traditional investments
Portfolio Diversification
Diversification of a portfolio can reduce overall risk
Passive Income
Provide a fixed return through passive income in the form of a coupon.
Our Investment Sectors
Real Estate
Investing in real estate through fixed-income strategies provides a reliable stream of returns, often backed by physical assets.
These include options like mortgage-backed securities, direct investment, or loan notes for property developments.
By focusing on high yeild opportunities or developments with strong cash flow, these investments offer stability and can offer lower risk.
Risks
- Market Fluctuations
The value of property can go up or down depending on market conditions, which can affect returns.
- Cost Overruns
The budget for development can increase unexpectedly due to material or labour shortages, leading to reduced profits.
- Construction Delays
Development projects can face delays due to weather, planning issues, or supply chain problems, affecting timelines and costs.
Litigation
Litigation funding allows investors to provide capital to legal cases in return for a share of the settlement or judgment.
These investments are structured for either fixed returns or payouts tied to case outcomes.
With proper research into the case details and legal teams, litigation funding offers the potential for strong returns and is not affected by stock market fluctuations.
Risks
- Uncertain Outcome
There's a risk that the legal case may not win, leading to no returns or a smaller payout than expected.
- Legal Delays
Court cases can take years to settle, which can delay or reduce returns.
- Legal Costs
Unforeseen legal expenses could affect the profitability of the investment.
ESG
ESG (Environmental, Social, and Governance) fixed-income investments focus on sustainability, whilst delivering steady returns.
Examples can include green bonds for renewable energy projects or agriculture.
These investments are aligned with global goals like the UN’s Sustainable Development Goals, making them ideal for those seeking both financial growth and positive impact.
Risks
- Regulatory Changes
Changes in government policies or regulations could affect the profitability of ESG projects.
- Project Failure
If the sustainable project, like a renewable energy initiative, doesn't succeed, it can affect returns.
- Lower Yields
Some ESG investments may offer lower returns compared to traditional investments, as they focus on sustainability over high profits.
Tax Considerations
Personal Tax implications can differ based on the nature of the investment, investor's circumstances and location. It's advisable to consult a tax advisor for personalised tax guidance and we can recommend specialists, depending on your country of residence. Please get in touch with us, for more information.
Case Studies
Fixed Income
Client Background
A client was recommended our services to support managing the currency conversion of proceeds from selling a property in France.
They were concerned about high exchange rate fees when converting Euros to US dollars with their bank and were also mindful of tax implications if the funds were transferred immediately to the USA.
Additionally, they were evaluating the interest rates offered by their banks in France and the USA.
We identified clear savings for the client on currency conversion but offered a more strategic solution to maximise their returns from an interest perspective.
By planning ahead, we helped them allocate a portion of the proceeds into an offshore Euro-based investment with higher interest rates than their bank could provide. This approach also allowed them to hedge against unfavourable exchange rate fluctuations at the time.
The client opted for a balanced strategy: a portion of the funds was converted into US dollars, while the remainder was invested in Euro-denominated fixed-income securities.
This tailored solution not only saved them money on currency conversion but also provided opportunities to achieve higher returns aligned with their financial goals, beyond the limited options offered by their banks.
Performance Highlights
Key Figures
- Weighted Average Yield: 10 - 15%
- Duration: 1 - 2 years depending on client needs
- Bespoke investment options depending on investment size
- Ability to invest from 10,000 GBP/EUR/USD upwards
- Fixed Income
The team provided invaluable support, offering solutions that saved me money on currency conversion while helping me make the most of my funds. Their expertise and tailored approach opened up opportunities I hadn't considered, aligning perfectly with my financial goals.