Beulah’s macroeconomic views have a strong influence on the fixed interest investments selected and the strategic asset allocation within this asset class determines the weighting across the credit investment universe being analysed.
Beulah may include the following investments in the Model Portfolios:
• Government and Semi-Government securities
• Managed Funds to obtain exposure to Global Fixed Income and other securities
• Corporate Bonds
• ASX Listed Hybrid Securities – Investment grade credit rating and above by Moody Investors or S&P
• Term Deposits
The allocation process to particular investments within the fixed interest portfolio is driven by the risk/reward objective of deriving a reliable income stream and to preserve capital. Allocations to each investment are based on the attractiveness of and the developments within the income sectors and ensuring sufficient diversification within the portfolio.
Beulah will typically gain exposure in the fixed interest market directly. From time to time to provide sufficient diversification of investments, particularly for smaller investment, it may be appropriate for a client to hold exposure via specialist credit investment funds. Beulah will blend a number of different investment managers with various specialties to ensure an adequate risk adjusted return to the portfolio.