A Three Box Approach to Building Debt Portfolios

Aim: To describe a three box approach for building debt portfolios.

Outcome: Completion of this module will enable financial advisers to apply the three box approach system when building debt portfolios for clients.

Abstract: With interest rates at record lows, it is a really good time to revisit how we build debt portfolios. The old days of simply investing in a bond fund and then getting to work on the more interesting task of picking equity managers are long gone. Today's low rates demand a much more thoughtful approach and a three box method is suggested. This approach is outlined and examples provided.