https://www.fidelity.com/managed-accounts/separately-managed...Was intrigued when I stumbled across this option to have a manager buy individual bonds for us. Management fee of up to 0.4%/year plus costs of trades. Anyone use them or something like it? Interested in my getting back to the board with info from talking to them? Would love to see what sort of returns they are talking about.IP
It would be interesting to see what they buy. Ind. bonds held to maturity are a nice way to avoid market and interest rate risks associated with bond CEFs, ETFs, and mutual funds. Of course there would be a lot less diversification in a small managed account.
Well, the account minimum is $500,000 so I would think there would be decent diversification. If you follow the links there is a decent FAQ and a PDF on how they invest, but too many questions go unanswered.IP
This is an interesting offering but that minimum, yikes. Would be curious how it works out in terms of performance, selection, etc if someone signs up.
I bet their bond desk is salivating at the prospect of unloading a bunch of 'stale inventory'. Reminds me of JP Morgan's move to open up select private equity / private debt investments to the hoi (but still accredited) polloi.
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