Market Outlook: Why the Search for Income Looks Bleak Going Forward – FS Investments – 9.18.18

Summary:

Now On Demand.

Many investors allocate a large portion of their portfolios to traditional fixed income. Yet the asset class has underperformed over the last five years,* and the outlook for returns remains bleak. Despite a strong economy and Fed rate hikes, it’s unlikely that long-term yields will renormalize any time soon.

Finding investments that allow you to improve the performance of this critical part of your clients’ portfolios is crucial to meeting investor goals. Understanding what drives income returns across asset classes and liquidity structures is important in guiding investors toward their ultimate goals of capital preservation and improved overall portfolio performance.

Session topics include:

• Why a strong economy and rising Fed funds rates are unlikely to lift income
• How income helps to mitigate the risk of extreme losses amid regular withdrawals
• Where to find differentiated sources of income for enhanced returns

Speakers:

Lara Rhame is Chief U.S. Economist at FS Investments, where she focuses on macroeconomic financial market analysis to inform and develop the company’s long-term views on the economy, investment trends and issues facing investors.

Prior to joining FS Investments, Ms. Rhame served as a Senior Economist at Credit Suisse, where she met with institutional and private clients around the globe to discuss market events and the global economy. She began her career at the Federal Reserve Bank of New York and has since worked at other Wall Street institutions, including Brown Brothers Harriman and Lehman Brothers. Her analysis has garnered attention across financial and economic news outlets, including Bloomberg News, The Wall Street Journal, CNBC and CNN.

Ms. Rhame holds a BA in Economics from Bates College and performed post-graduate macroeconomic studies at New York University.

Ms. Rhame serves on the board of the Economy League of Greater Philadelphia. She is a former President of the Forecasters Club of New York and has guest lectured at Columbia University, New York University and Long Island University. As an active participant in Philadelphia’s philanthropic community, she served on the board of BalletX and is currently a board member of Starr Garden Pak.

Lara Coviello is an Executive Director on the Fund Strategy team at FS Investments. She serves as a portfolio specialist and subject matter expert to educate advisors and investors about FS Investments’ current offerings. She brings over 12 years of experience in investment research and portfolio management.

Prior to joining FS Investments, Ms. Coviello founded her own investment advisory firm, Auctus Wealth Management, where as lead portfolio manager she specialized in tailoring clients’ investments to their financial goals. She began her financial services career at Linden Asset Management and Linden Growth Partners LP, an RIA and pre-IPO evergreen fund, performing risk assessment, market analysis and research on public and privately held companies. She also spent two years as a statistician in the pharmaceutical industry.

Ms. Coviello received her MA in Statistics from Columbia University and her BS from Penn State University. She also completed the Private Equity and Venture Capital Executive Education course at Harvard Business School. She holds the Chartered Financial Analyst designation and is a member of the CFA Institute, the CFA Society of Philadelphia and the American Statistical Association.