Partnerships
Fixed Income > Partnerships
We have built our business over decades to provide the important trading, analysis, portfolio management and operations infrastructure that an independent RIA would be required to implement if forming an internal fixed income team. Some large RIA firms have the capacity to build out an expensive trading desk, including both technological infrastructure and personnel. However, there is a huge void for small to mid-sized Advisory teams. Our main objective is to provide every aspect of this infrastructure to a growing RIA or family office practice in an efficient way so they can focus on client facing activities and business growth.
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As a financial planning firm, your primary goal is to create a trusted partnership and dialogue to the high net worth individual, retiree or corporate client. Your time is best spent when you are sitting at the table with them, understanding their goals, providing professional advice and holding their hand through the investment and planning process.
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Similarly, we hold ourselves accountable as the consultant/advisor/trader/manager/analyst to each of our RIA clients specifically regarding fixed income. Rather than having to spend your time and resources devoted to the “blocking and tackling” of the typical trading day, we take care of this for you.
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Our ultimate goal is to provide a consultative, partnership-oriented experience that provides your partners and staff significant business efficiencies. Over the years, many firms have found our mutual relationship to be an excellent way to have industry professionals covering their fixed income allocations while allowing Advisors much more time to focus on what they do best…planning and client interaction. This has provided our Advisors with an avenue to add value for clients which is, in turn, very conducive to the Advisor's growth.
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We are viewed by the RIAs we partner with as their outsourced fixed income department in every capacity. Our focus is on individual bond portfolios. However, many firms rely on us for comprehensive advice, which includes look-through analysis regarding the totality of fixed income holdings and exposure. In many instances, an RIA may utilize a combination of individual bonds and bond funds. We have the infrastructure and capacity to highlight total exposure to various sub asset classes, inclusive of fund or ETF holdings, and thus customize portfolios around a firm's individualized client or household needs.
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We know that every RIA practice is different. Each firm manages money in a slightly different way. The key concept around our concierge-style service is that we cater to a limited number of RIAs in a very high service capacity, and thus have the ability to fully customize our work around your investment style and client needs/demands. We sit on the same side of the table as you when client facing, and can be as visible or “behind the scenes” as you desire.
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How would daily operations look if your company had a fixed income team?
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Designing & implementation of portfolios --> Trading
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Monitoring holdings – credit quality, duration, relative value, etc.
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Conducting fixed income market/economic landscape/strategy discussions
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Deciding on firm level and client level fixed income allocation decisions
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Contributing to IC meeting dialogue
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Producing client facing proposals
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Preparing portfolio reviews
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Voluminous reading or market related material
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Having dialogue with prospective clients
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Analyzing prospective client holdings and creating portfolio holdings snapshots
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Conducting best execution exercises and other compliance related tasks
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Operations protocol for trade settlement --> An entire department by itself
What infrastructure would an RIA need to properly manage fixed income allocations?
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Dedicated Staff/Employees
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Bloomberg terminals
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Other fixed income analysis tools
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Proprietary spreadsheets built with Excel links
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Fixed Income research subscriptions
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Specialized portfolio management software
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Agreements with electronic trading platforms
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Computers/technology
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All of the above items are costly in terms of time and money!
Why should an RIA partner with PeachCap Fixed Income?
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Currently uses individual bonds but finds frustration in information presented on bonds through custodial platforms and electronic trading operations.
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Trading takes a planners’ time away from client interaction on a daily basis.
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No cohesiveness or efficiency in monitoring positions objectively.
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No effective communication strategy with clients regarding individual bond positions.
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Portfolio holdings snapshots not providing ample information through traditional planning software.
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Use mutual funds/ETFs inside of a model but would like to differentiate one's practice from others through the use of individual bonds.
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Use SMAs but find that it is “cookie cutter” and not customized to clients.
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Target new clients, some of which hold individual bonds, but don’t have adequate ways to report back on creditworthiness, etc.
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Simply want more fixed income expertise!
How does an RIA or Family Office define our mutual
partnership?
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Independent RIAs and other institutions embrace a partnership style relationship and utilize us to fill a specific niche hole in their portfolio management regarding fixed income.
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Most RIAs have options to use fund managers, ETFs, some cookie cutter SMAs, or electronic trading platforms utilizing the offering side exclusively (pricing disadvantages).
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An Advisor typically desires fixed income trading infrastructure at their disposal and expertise on a partnership level.
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Most are sincerely client focused and want to create efficiencies to grow their business.
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Many do not have time, nor resources to trade individual bonds by themselves.
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Trust is a big factor and RIA clients come to trust the work we do for them and their clients.
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They deeply value the ability to remain in control at the end of the day.
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The Advisors who see the most value understand that their time is better spent conducting financial planning for clients -> offloading the fixed income piece to a trusted partner vs. doing it in house.
