Shawn Paulk, Chief Growth Officer for SPFG, joined Julie Cooling, Founder and CEO of RIA Channel, at the GTE Wealth Forum to discuss the benefits of outsourcing fixed income portfolio management.
SPFG advises on $7 billion in assets, building individual, customized bond ladders for the clients of 200 RIA firms. The bonds are held in individual client portfolios, not in SMAs, ETFs, or mutual funds. Bond ladders are used to provide income that helps clients safely get through retirement.
Paulk notes that the job of advisors has changed over time. As advisors add more financial planning to their practices under pressure to maintain revenue and client growth while spending more time with clients and prospects, many are spending less time on investment management.
SPFG’s outsourced solution provides long-term expertise in the fixed-income market and charges no ongoing fees after earning a spread on the initial construction of the bond portfolios. SPFG provides ongoing service, monitoring bonds in client accounts to provide advisors with information on bonds that have been called or have experienced changes in credit ratings. SPFG can access the entire bond market, not just the inventory at a single bank or custodian. SPFG collaborates with the advisor to build a diversified portfolio that meets the client’s yield goal, with customization for clients with state-specific or ESG preferences. SPFG purchases the bonds and places them in individual client accounts through the delivery vs. payment (DVP) process.
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