Income Strategies
You have to make your money work for you.
At Fabian Wealth Strategies, we take the concept of making your money work for you very seriously. Our firm specializes in helping clients preserve their investment capital while also generating the income they need to live the life they desire.
The Steady Income Portfolio can best be described as an approach to investing that uses a variety of investment tools in conjunction with a proven trend-following methodology developed over three decades ago, and that continues to be refined to this day.
The overarching tactic used in the Steady Income Portfolio is to move money in and out of a combination of three "sleeves" or asset classes of the strategy, which are 1) dividend paying equities, 2) fixed-income and 3) alternative income investments. When conditions are conducive to each respective asset class, we get our money exposed to that class. Conversely, we move money out of these respective sectors as soon as we determine conditions have become unfavorable.
At Fabian Wealth Strategies, we take advantage of these various asset classes by using a combination of exchange-traded funds (ETFs), mutual funds, and closed end funds to forge our portfolios. We hand pick each individual position and size it correctly so that the intermingling of each investment offers our clients high current income with low overall volatility.
The ETFs we use offer very low expense ratios, and are objectively managed, which means we know exactly what each fund owns at any moment. Because ETFs are traded on an exchange just like stocks, they are the ultimate in flexible investment instruments. This flexibility is important, because in some cases our strategy requires the ability to move in and out of particular area of the market as soon as we think conditions warrant such a move.
The mutual fund and closed-end fund investments we typically use in our Steady Income Portfolio allow our client's access to strategies that cannot be obtained using a simple index based ETF. They usually encompass a more dynamic or sophisticated strategy that can enhance the overall yield of the portfolio. However, we always take risk management, liquidity, and overall fund expenses into heavy consideration before making an allocation.
Another critical component of the Steady Income Portfolio is to have both minimum and maximum exposure limits in any one asset class. The diversification of having a portion of an income portfolio in equity funds, bond funds, and alternative funds, or even cash, allows our portfolio to nearly always be generating income regardless of prevailing market winds.
Our actively managed income-generating strategy also allows us to fine-tune our asset allocation mix so that we can take full advantage of whatever the market throws our way. Part of the active management in our strategy is to use macro themes to select areas of the market we believe will perform well over the short and long-term. Then we overlay our core risk management philosophy by having a strong sell discipline to protect capital when market conditions change.
The overriding objective in the Steady Income Portfolio is to generate a robust income stream while also maintaining an attractive yield regardless of the climate in the financial markets.
Managing a large multi-million dollar portfolio can offer some unusual challenges for individuals seeking safety but also concerned with inflation and/or taxes. Fabian Wealth Strategies has addressed this concern for high net worth investors by offering a Managed Fixed Income Portfolio comprised of individual fixed income securities in a wide range of sectors uniquely tailored to our client's desires. We can sculpt a portfolio with a mix of municipal, corporate, Treasury, agency, and mortgage backed securities for a true aggregate approach, or we can offer a more concentrated strategy such as a pure California municipal bond portfolio.
Customization is a key part of our approach so that we can pre-determine how much risk an investor should take by pinpointing portfolio characteristics such as average duration or credit risk before a single security is purchased. Each portfolio is setup through a series of one-on-one conversations with our principles aimed at meeting or exceeding a client's expectations, with a focus on taking the minimum amount of risk and seeking to achieve the maximum amount of return.
Our Managed Fixed Income Portfolio is for sophisticated investors with a minimum of $1 million in this strategy.
The following are our annual fee schedules that are also broken down monthly:
| Steady Income Portfolio | ||
|---|---|---|
| Assets Managed | Annual | Monthly |
| $250,000 - $749,999 | 1.50% | .125% |
| $750,000 - $1,499,999 | 1.25% | .104% |
| $1,500,000 - $2,999,999 | 1.00% | .083% |
| $3,000,000+ | negotiable | |
| Managed Fixed Income Portfolio | ||
| $1,000,000 - $2,000,000 | 0.75% | .063% |
| $2,000,000 - $3,000,000 | 0.60% | .05% |
| $3,000,000+ | negotiable | |
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The overriding objective in the Steady Income Portfolio is to generate a robust income stream while also maintaining an attractive yield regardless of the climate in the financial markets.
- Three sleeve approach to generating income
- Dividend paying stocks, fixed income, alternative income investments
- ETFs, mutual funds, and closed-end funds make up our portfolio
- We fine tune our asset allocation mix for the current market environment
- We use minimum and maximum exposure limits to ensure we meet our objectives