FMD Capital Management

Bond Fund Investors Should Lower Duration

Written by Michael Fabian, September 12th, 2014

If the decline in bonds last summer put a serious dent in your portfolio, it’s time to circle the wagons so that future interest rate leaps won’t leave you scrambling to make changes at the most inopportune time.

The crux of the problem for most bond investors is the difficulty of factoring in the potential percentage change in net asset value for a theoretical change in interest rates. These factors become even more complicated when a portfolio is commingled with different types of bonds. We toss around financial lingo such as: Effective duration, average life, or modified duration. However, the complex calculations that spit out a portfolio’s sensitivity to interest rates are ultimately just a measure of time.  That measure then needs to be put in real terms for an investor that may not have institutional analysis tools for calculating specific risks. Read more

Putting The Decline Of European ETFs in Context

Written by David Fabian, September 10th, 2014

European ETFs have experienced a difficult summer amid a faltering currency and central bank that is scrambling to implement looser monetary policies. On the surface, the recent announcement of further rate cuts and asset purchases to stimulate economic growth seem like a step in the right direction for the European Central Bank. However, reaction to the news by shares of European companies has been less than stellar. Read more

The Key To A Successful ETF Portfolio Is Balance

Written by David Fabian, September 09th, 2014

As an investment adviser I am frequently reviewing portfolios and offering recommendations on how to maximize growth or income according to the clients’ objectives. Typically these reviews are divided into two categories: 1) the accounts that are well conceived and just need a few tweaks to enhance their returns or 2) the accounts that are completely asymmetrical to the market, the investors’ goals, or reality in general. Read more

Ultimate ETF Income Guide: Dividend ETFs

Written by David Fabian, September 05th, 2014

At FMD Capital Management, our goal is to provide you with tools to enhance your income investing returns. With that goal in mind, we have created a 3-part series of special reports designed to give you succinct data along with tips to implement dividend paying ETFs into your portfolio. Read more