Mayberry Managed Bond Portfolio
Mayberry Investments Limited (MIL) offers managed US$ fixed-income portfolios for both institutions and individuals. The MMFIP is a full discretionary, no spread, and managed portfolio of a diversified group of bonds.
MMBP: A Suite of Fixed-Income Portfolios
There are three portfolios from which to choose:
All Jamaica,
Blue Chip and
High Grade.
The All Jamaica Portfolio is an equally weighted portfolio comprised of US$ denominated sovereign bonds issued by the Jamaican government (GOJ Eurobonds) with maturities ranging from 3 to 18 years (averaging about 10 years). The weighted yield-to-maturity (YTM) on the portfolio is approximately 9% per annum and the portfolio has a credit rating equal to that of Jamaica, which is rated at B1 by Moody’s and B by S&P (B1/B). The duration of the portfolio is targeted at less than 6.00 years.
The Blue Chip Portfolio is an equally weighted portfolio of US$ denominated sovereign bonds issued by governments of Latin America and the Caribbean. It is our flagship fixed-income portfolio, and is designed to strike a balance between YTM, credit rating and duration. In so doing it elegantly balances risk and reward. The YTM on this portfolio is approximately 8% per annum, with a credit rating of Ba2/BB (two and three notches above Jamaica, respectively). The duration of this portfolio is targeted at less than 5.50 years.
The High Grade Portfolio is an equally weighted portfolio of US$ denominated sovereign bonds issued by sovereignties with a credit rating higher than A-. It offers an attractive yield for the more conservative, risk averse investor. The YTM on this portfolio is approximately 4.5% per annum, with a credit rating of Aa3/AA- (ten and eleven notches above Jamaica, respectively). The duration of this portfolio is targeted at less than 8.00 years.
Who should consider a MMBP?
Persons who find it difficult to manage their fixed-income portfolios on a day to day basis should consider the MMFIP. Further, the MMFIP is for individuals and institutions who would like to pursue a medium to long term USD fixed-income strategy.
What are the benefits of a MMBP?
- Clients own the bonds purchased on their behalf
- Reduction of risk through diversification.
- Coupon (interest) paid monthly and is credited to your account
- No spread or load fees charged
- Accounts can be financed with either current bond holdings or cash
- Client statements are available at anytime
- Account is actively managed
- Lower investment management fees than similar type products.
- More Frequent Income stream.
How is the MMBP different from a Fixed –Income Mutual Fund?
- Significantly lower fees
- Monthly cash flow from holdings
- Ownership of bonds
- More transparent management
- Ability to use existing bond holdings to fund the MMBP rather than cash
- Access to a personal account executive