| Wealth Protection
Securing Your Future: Smart Asset Allocation
This technique for maximizing gains while minimizing risks in your investments should lead to diversification of your portfolio among different types of assets – including stocks
and bonds, mutual funds, and structured products. Here at Sterling Asset Management, we boast expertise in all of these areas and are able to guide you through what could be a minefield of uncertainty, given the variety of instruments in which assets may be placed.
Bonds
We have extensive knowledge of the wide range of options that are available in the area of bonds. These interest-bearing certificates may take the form of US Government Agency Bonds, which are issued by organizations such as the Federal National Mortgage Association to raise money for the various functions in which an agency such as Fannie Mae engages. Other types include sovereign bonds – that is, debt security which is issued by a national government or emerging market, such as Jamaica, within the issuing country itself, but which is denominated in a foreign currency – and which usually have a good risk/reward ratio. here are some additional facts about this relatively low-risk investment options. Bonds:
- Can provide investors with a steady income stream
- Have capital appreciation potential in respect of the additional reward that investors may collect if there are positive developments in an economy or corporation
- Offer the investor currency diversification via the ability to invest in both local and foreign bonds
Let's talk with you about taking advantage of the excellent investment option that bonds provide and their importance in helping you achieve the type of balanced portfolio that successful investors aim for.
Mutual Funds
Mutual funds, which comprise pools of money that are professionally managed for the benefit of all shareholders, are another good addition to a diversified portfolio. This is because they allow investors to own a portion of the fund. The right mutual fund for you may focus on a single or combination of asset classes. The bottom line, though, is that such funds are preferred because they give the investor, among other things, access to professional placement of assets in investment areas where they will bring better returns. Additionally, by pooling with other investors, mutual funds enhance buying power so that there is greater reach for the investment dollar. At Sterling, we help you identify and place your assets in funds that will best meet your special needs.
Structured Products
Structured products combine at least one derivative – that is, a security whose price is linked to or derived from another underlying asset or assets – with fixed income instruments. These products are designed to provide better returns for the investor when there is positive movement in the underlying assets. Structured products include range notes, principal protected notes (PPNs), corporate bonds, leveraged repos, reverse convertibles, and Exchange Trade Funds (ETFs). ETFs consist of a collection of securities that represent a specific sector or index and while similar to a mutual fund in build, actually trades in the way that stocks do. Although considered more risky than their traditional counterparts, structured financial products have an important role to play in any portfolio that is truly diversified. Sterling has honed our skills in negotiating this varied and complex investment area and applies that investment savvy in helping clients like you select wisely.
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