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CIP Quips

The Sweet Spot

In the News:

In an interview in last Friday’s New York Times, Chief Fixed Income strategist at the Schwab Center for Financial Research, Kathy Jones, relayed her concerns that by holding T-Bills or cash equivalents investors may be too defensive. Interestingly she comments on a Morningstar Direct report stating that for the last six months ultrashort-term bond funds have had the highest net inflows among taxable bond funds. Ms. Jones states, “Implicitly, that is trying to time the market…and such behavior can hurt investor returns.” She also mentions her view that the sweet spot for investors is a fixed income portfolio with an average duration from two to five years. 

Our Thoughts:

We feel our Current Income Portfolio (CIP) is designed to take advantage of the current environment. As of 9/30/18, more than half of the portfolio had an effective duration of less than 5 years (the weighted average duration on the total portfolio was 4.24 years).  CIP may be a suitable solution for those seeking a risk conscious approach to income generation, as the portfolio strays away from high-yield debt and common stocks. Rather, we look to our preferred security sleeve to act as our yield engine. Some of these preferreds are structured as fix-to-floating rate debt instruments, which may benefit investors as rates rise.

As active managers, we seek to provide value by remaining cognizant of current trends, making reasonable and informed expectations of Fed announcements, paying attention to credit spreads and utilizing a mix of fixed rate and fixed-to-float rate securities in preparation of interest rates possibly trending higher. 



This information is intended solely to report on investment strategies and opportunities identified by Roosevelt. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. This material is not intended as an offer or solicitation to buy, hold or sell any financial instrument. References to specific securities and their issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. Please contact us at 646-452-6700 if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions, or if you would like to request a copy of our Code of Ethics. Our current disclosure statement is set forth on our Form ADV Part II, available for your review upon request, and on our website, www.rooseveltinvestments.com.

Past performance is not a guarantee of future results. Indices are unmanaged and cannot accommodate direct investment. Themes assigned as per Roosevelt Investments’ evaluation. Risk tools may include cash or other securities that we believe possess a low or inverse correlation to the overall market.


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The Roosevelt Investment Group, Inc. is an independent investment management firm that is not affiliated with any parent organization. The Roosevelt Investment Group, Inc. manages equity, fixed income, and balanced assets for primarily U.S. clients. The Roosevelt Investment Group, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission and notice filed in all 50 states.

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