Fixed income investments are a necessary component of a portfolio that is diversified across different asset classes.
Historically, bonds have returned more than cash investments, and exhibited less volatility than stocks. As a result, adding bond investments to an all-stock portfolio generally lowers the risk of your overall portfolio. Depending on the issuer, they can provide a guaranteed fixed return when held to maturity and are a source of stable cash flow.
There is a wide variety of fixed income investments including government bonds and corporate bonds; all are fully marketable and can be sold at market value at any time, should you need access to your funds. We can also offer High Yield or Convertible Bonds which offer higher yields but come with more risks.
Fixed Deposits are another form of fixed term investment. They offer a specific rate for a pre-determined period of time.
If you are buying or selling overseas, Turks & Caicos Banking Company provides foreign exchange (FX) services designed to meet your needs.
Currency information, rate quotes, risk management strategies and execution. The primary responsibilities of each Foreign Exchange specialist is to understand client requirements and to deliver a customized service based on those needs.
Through our excellent relationship with our correspondent banks all around the world, we can send funds in all offered currencies to support the need of sending payments overseas.
Equities are an important part of a well-balanced wealth management strategy and should be considered by investors seeking to pursue long-term objectives.
Common stocks (or equities) represent ownership rights in a corporation. When compared with bonds and cash alternatives, stocks carry higher risk because they have potential for volatility.
Options are contracts that give their buyer the right – but not the obligation – to buy or sell an underlying security for a specified price on or before a specific date.
Diversification is Key
Over time, investors have found that a diversified portfolio of stocks, bonds and cash usually provides one of the best ways to pursue long-term goals while minimizing overall portfolio risk. To appropriately diversify your portfolio, you must determine what percentage should be allocated to stocks and which stocks you should include.
Exchange Traded Funds
An Exchange Traded Fund (ETF), is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund.
Unlike mutual funds, an ETF trades like a common stock on a stock exchange. ETFs experience price changes throughout the day as they are bought and sold. ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making them an attractive alternative for individual investors.
An ETF is a type of fund which owns the underlying assets (shares of stock, bonds, oil futures, gold bars, foreign currency, etc.) and divides ownership of those assets into shares. The actual investment vehicle structure (such as a corporation or investment trust) will vary by country, and within one country there can be multiple structures that co-exist. Shareholders do not directly own or have any direct claim to the underlying investments in the fund; rather they indirectly own these assets.
ETF shareholders are entitled to a proportion of the profits, such as earned interest or dividends paid, and they may get a residual value in case the fund is liquidated. The ownership of the fund can easily be bought, sold or transferred in much the same was as shares of stock, since ETF shares are traded on public stock exchanges.
Advantages of ETFs
By owning an ETF, investors get the diversification of an index fund as well as the ability to sell short, buy on margin and purchase as little as one share (there are no minimum deposit requirements). Another advantage is that the expense ratios for most ETFs are lower than those of the average mutual fund. When buying and selling ETFs, you have to pay the same commission to your broker that you’d pay on any regular order.