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KHC Secured Bond Separately Managed Accounts (SMA)
Limiting risk to principal. Investing for income.
Investment Team – KHC Investments, LLC, a registered investment advisor
- Well-secured issues of investment grade corporate and municipal bonds (taxable/tax-exempt). All US based issues (no international).
- Unsecured bonds will not be purchased for the accounts, regardless of bond rating. Secured bonds will be rated investment grade.
- Account will provide reliable bond interest income over the life of the account.
- Low fees- Management fees- 0.5% (50 basis points). No marketing, sponsorship, program, or other fees. (ie: if account generates 6.5% in income, 6.0% will be distributed to account holder)
- Limited account trading. Bond maturities will be 15-20 years. Most bonds are expected to be held to maturity, mitigating interest rate risk.
- Minimum account- $500,000. Lower account balances subject to negotiation.
- Communications: Quarterly statements, investment commentary.
KHC Secured Bond Separately Managed Account- Well-secured issues of investment grade corporate and municipal bonds (Taxable & tax-exempt). Focus on Yield to maturity. Bonds selected are expected to be held to maturity; thus, reducing fees and management expenses.
Investment Process- Our portfolio managers do not attempt to make interest rate bets through extending or reducing bond maturities. The focus is to add value through security selection and managing yield to maturity of the portfolio.
*Portfolio model consists of bonds purchased by KHC Investments, LLC or an affiliate thereof that are located on the KHC Website KHCinvestments.com/Transactions.
The advisory firm will not assume custody of client assets. As an advisor, the firm will set up an account for the client held by an outside custodian; and, the account will be in the client’s name with KHC Investments registered as the advisor for the account. A separate investment contract will allow the advisory firm to select fixed income securities for that account.
It is preferred that the client have an outside custodian already established to hold securities, (which is set up by an advisor or by the client).