With yields remaining stubbornly low and inflation in the spotlight, income-minded investors will have to think outside the box to find attractive opportunities. Yet the “outside the box” moniker has typically signaled riskier, more volatile investments.
In the upcoming webcast, Beyond Basic Bonds: Innovative ETF Strategies to Fix Fixed Income, Matthew Bartolini, Head of SPDR Americas Research, State Street Global Advisors; Kevin Nicholson, Global Fixed Income Co-CIO, RiverFront Investment Group; and Kimberly Woody, Vice President, Senior Portfolio Manager and Senior Investment Analyst GLOBALT Investments, will explore the current fixed income market, explain the risks associated with inflation, and touch on the loan and credit space.
RiverFront Investments Group offers a suite of RiverShares Model Portfolios that are comprised solely of RiverFront sub-advised ETFs. These models are constructed based on investor time horizons and risk tolerances, according to RiverFront.
For example, the actively managed RiverFront Dynamic Core Income ETF (NYSEArca: RFCI) and RiverFront Dynamic Unconstrained Income ETF (NYSEArca: RFUN) include global fixed income securities and are constructed through a two-step process. First off, the fund manager selects strategic allocations among different fixed income assets classes, with an objective being to construct an allocation that is designed to to balance the probability of upside returns with downside risks for investors with a five-year time frame. Secondly, the portfolio is tactically adjusted as market conditions warrant and determines security selection within within asset classes to maximize potential return over time.
RFCI is prohibited from investing more than 15% in high-yield and more than 10% in securities denominated in foreign currencies or emerging market debt. The average duration of the fund is expected to be between two and eight years, under normal conditions.
RFUN may allocate to various fixed income asset classes, such as high yield, mortgage backed securities, and corporate debt, without constraint but is limited to no more than 50% allocation to securities denominated in foreign currencies and no more than 50% allocation in emerging market debt. The average duration of the fund is expected to be between two and ten years, under normal conditions.
Additionally, the RiverFront Strategic Income Fund (RIGS) utilizes various investment strategies in a broad array of fixed income sectors.
Financial advisors who are interested in learning more about innovative fixed-income strategies can register for the Thursday, August 26 webcast here.