Services
Fixed Income > Services
Delivering a high level of service when consulting with any Advisory firm is of utmost importance. At PeachCap, we place primary importance on delivering a high level of service for our clients. An RIA finds value when they have confidence that their partner will consistently deliver and add significant value.
We seek to develop meaningful, LONG-TERM partnerships with our RIA clientele, much like these firms do with their end clients. We limit the number of relationships that we develop so we can remain fully committed to each client. It is important that we sit on the same side of the table with the planner when communicating with their clients, so we can best understand the needs of the end client and help the Advisor build an appropriate solution.
We are your business partner and communication is key. With that, we make ourselves available so we can provide our highest level of client service. Don't get pawned off to a junior trader. At PeachCap, you have access to talk directly to our traders, portfolio managers, and analysts on a daily basis. Similarly, you will always have access to our head traders and analysts. We work very closely as a team so all aspects of your portfolios get the attention they require.
Our approach is turn-key. For the typical situation, it involves a primary discussion > portfolio design > proposal generation > implementation > monitoring > frequent follow-up.
At the end of the day, the goal is to create business efficiencies. We do all of the daily heavy lifting and allow you more time for your client facing activities. The ultimate goal is to provide the avenue for you to add value and help grow your business.
If you manage individual bond portfolios currently, examine the time spent trading. The fixed income market is SIGNIFICANTLY more complicated than the equity market. Just looking at municipals alone, there are many thousands of CUSIPs, various bond structures, etc. And many times the electronic platforms do not tell the whole story as it relates to a bond structure. Buying the correct bond structure at the right price takes both time and expertise. This is where we come in.
Most firms offload all of the trading and monitoring to us in order to provide them with more opportunity to properly service client needs. Our day is spent bidding bonds and scouring the markets for attractive offerings, and communicating with many of our established trading partners in order to deliver attractive prices/yields. We spend hours of our day staring at multiple trading screens, and in obtaining attractive, creditworthy fixed income issues.
All of the other service related aspects of our business accompany this trading component.
Before we talk to a new Advisor, they are used to essentially doing the trading themselves. This is traditionally executed on electronic platforms through a firm’s institutional custodian. With this, an RIA is utilizing the offering side of the market. In our experience, this can lead to more expensive products relative to us bidding bonds based on client demand.
How Does Our Team Trade for the Benefit of Your Firm and Your Clients?
We see a great advantage in bidding and buying odd lot bonds in the secondary market…particularly regarding tax free and taxable munis. Given inefficiencies in the market, there are certain opportunities where we may be able to source odd lot positions at a lower price than large, round lot, institutional sized pieces.
This is a significant benefit to a buy and hold individual investor. This dynamic allows us to methodically work the bid side of the market and provide value to our RIA clients. For the typical financial planner, he or she has a client who desires individual bonds, but has only small to midsize portfolios ($200K - $10 million). With our odd lot approach, we seek to achieve adequate diversification while building out a fully intact bond ladder. Odd lot pricing can also present various risk factors including the potential for disadvantageous pricing for a seller and less liquidity. All risks should be reviewed prior to investing.
Similarly, we have other more active strategies where we often will pick up bonds on the bid wires and work with our RIA clients to, at times, offer these bonds back to the street at levels that can add value to portfolios at times.
What is our opinion of the odd lot advantage for a buy and hold investor?
One of the key services that we provide to RIAs and other Institutional Clients is in our consistent portfolio analysis. Many planners will send us portfolio holdings in anticipation of client meetings, and we are instrumental in giving them significant intel and bullet points to drive client discussions. Analysis starts at the global level for any firm, and then moves down to households, individual client accounts and finally individual client positions.
The process usually entails an RIA sending us global holdings snapshots, which we hold in a database that is continually updated for credit, calls, pre-refunding, etc. Upon demand, we can then create household and portfolio snapshots which Advisors find value additive in gaining a more complete understanding of portfolio structure and characteristics. Advisors also utilize this service to conduct similar review, analysis and form communication bullet points for potential clients..
Lastly, we hold ourselves out there to sit in on larger client meetings and discussions if a planner would like to have an expert in the room to share some of our analysis, market knowledge and opinion with their clients.
This process also entails portfolio monitoring on a consistent basis for Institutional Clients.
How do we add value through portfolio analysis and monitoring?
Another key aspect of our service is not client facing, but staff facing. We hold ourselves out there to provide consistent market updates. We distribute a short, monthly commentary which highlights important recent events.
Accompanying these missives, we will often set up more through market and economic calls, which are customized to each Advisor who requests it. Many times we will ask for a firm’s current questions and form the discussion around their partners most pertinent points/topics.
Many firms utilize an Investment Committee approach. We are oftentimes sitting in on these meetings, providing our input and thoughts and hypotheses on the markets, economic landscape, Federal reserve happenings, etc. Most RIAs find this to be a good tack on to their own internal discussions.
Communications:
- Monthly interest rate/econ/market-related missive
- Intra month missives should markets warrant that
- Regular calls with your planners
- IC meeting attendance if necessary
- Client specific pieces
- Client meetings
- Specific emails based in client needs
- Consistent interaction on phone
Access – we are available to you as our partner client whenever you need us.
- Zoom Calls with clients during COV-19 and beyond
- In person meetings
- Conference Calls
- Access to relationship managers, traders and analysts always.
How does an RIA or Family Office Value our Communications?
