Fixed Income Investing vs. Equity Investing

The most common asset classes held in a portfolio are equities (e.g. common stocks), fixed income (e.g. bonds) and to a lesser extent, alternative investments (specialty funds, mortgages etc.). A high-net-worth individual, foundation, corporation, institution or trust may employ the services of several managers, each of whom specializes in one of these three asset classes, to form an overall diversified investment portfolio. This article discusses the main differences between fixed income and equity investing and highlights a major difference between the two during inflationary periods.

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Corporate Governance is Crucial for Investment Managers

Your investment manager has some overarching legal and ethical duties: to deal fairly, honestly and in good faith with you as their client, to use reasonable care to avoid misrepresentations and to always act in your best interests. But how can you be sure your investment manager is fulfilling these duties?

Your investment manager can best fulfil these duties and demonstrate them to you by putting in place a governance structure that is effective, flexible and visible to you.

An effective governance structure for investment managers, and ways in which you can stay informed and reassured about it, should include the following.

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What is an Investment Philosophy and Why Does it Matter?

Investment Philosophy and Why Does it Matter

A well-conceived and concise investment philosophy is widely held as crucial to investment success.

It may be even more important than an investment strategy, as your investment philosophy is the precursor of your investment strategy. Investment strategies may require adjustment with changing personal circumstances and market conditions, while your investment philosophy keeps you focused on your long-term objectives.

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