dedicated portfolio การใช้

• Dedicated portfolio theory focuses explicitly on cash flows and time horizons.
• Leibowitz also published a paper in two parts defining dedicated portfolios in 1986.
• :c . inflation indexed bonds such as TIPS are used to build the dedicated portfolio.
• Dedicated portfolios fall into the category of passive management because once bonds are purchased, they are held to maturity.
• It would be easy to build a dedicated portfolio consisting entirely of zero coupon bonds, but their yields can often be lower than coupon bonds.
• Also, triple-A rated corporate bonds have become scarce since the financial crisis of 2008 over the wide range of maturities needed for dedicated portfolios.
• Because the bonds are dedicated to providing the cash flows, the term " dedicated portfolio " or  asset dedication is sometimes used to describe the strategy.
• Investors who are willing to assume more risk can build dedicated portfolios with lower quality bonds, gambling that a sufficient number of them will pay off ultimately.
• Because dedicated portfolios are designed to provide a specific stream of funds to match future target cash flows, those cash flows must be quite specific in terms of timing and amounts.
• They would buy a dedicated portfolio whose first bond matured in five years, the second in six years, etc . Yields would likely be higher on these bonds because they are further out on the yield curve.
• This need for specificity forces anyone contemplating a dedicated portfolio investment strategy to put careful thought into developing a formal, lifetime financial plan, as opposed to merely relying on vague or hazy goals and hoping for the best.
• Recall that a secondary goal of dedicated portfolio theory is to select the bonds that will provide the requisite cash flows at the lowest possible cost, given requirements on the minimum quality of bonds to be considered ( thus the need for calculation ).
• It was published in 2005, describing the strategy and how the advances in desktop computers have reduced the cost of constructing dedicated portfolios to levels where individual investors could use the concept for personal investing, such as the example below shows for a retirement portfolio.
• For example, if a financial company is obliged to pay 100 dollars to someone in 10 years, it can protect itself by buying and holding a 10-year, zero-coupon Dedicated portfolio theory is based on cash flow matching and is being used by personal financial advisors to construct retirement portfolios for private individuals.