Investments

The Garbacz Group Introduces New Managed360™ Investment Solutions Provided by BNY Mellon’s Lockwood Advisors

Recent changes at Lockwood and BNY Mellon mean that Garbacz Group clients now have access to an even wider range of innovative global financial products and services tailored to your individual risk tolerance and investment goals. We have expanded our portfolio management services to include new Managed360™ investment solutions provided by BNY Mellon’s Lockwood Advisors.

“Our strategy is to work exclusively with BNY’s Pershing, LLC and Lockwood Advisors, Inc. to structure, monitor and manage a portfolio consistent with the client objectives and risk tolerance,” said Joseph Garbacz, Chartered Financial Consultant and Chairman of the Board at the Garbacz Group.

Decades of Partnership

The new enhancements to the Garbacz Group’s portfolio management services are driven by our decades-long partnership with Pershing and Lockwood Advisors. Here is a quick rundown of the key players and how they help our family-owned business serve our clients at the highest level.

Pershing

The Garbacz Group (then operating as JGI, Inc.) became a member of Securities Investor Protection Corporation and a correspondent of Pershing, a global provider of fast and efficient trade execution and clearing services for investment firms, in the 1990’s. Pershing was acquired by the Bank of New York in 2003. BNY Mellon’s Pershing and its affiliates provide advisors, broker-dealers, family offices, hedge fund and ’40 Act fund managers, registered investment advisor firms and wealth managers with a broad suite of global financial business solutions.

With a network of 23 offices worldwide, Pershing provides business-to-business solutions to broker dealers representing approximately 7 million  investor accounts globally. Many of the world’s most sophisticated and successful financial services firms, including the Garbacz Group, rely on Pershing for trading, execution, clearing, and custody services.

BNY Mellon

• 1.9 Trillion under management
• $33.3 Trillion under custody or administration
• Offices in 35 countries serving customers in more than 100 markets worldwide
• Tier 1 capital ratio of 12.7%

Source:  The Bank of New York Mellon Corporation, Corporate Fact Sheet (Q4 2017)

Founded in 1874 by Alexander Hamilton, BNY Mellon is the longest-lasting financial institution in the United States. BNY Mellon’s Manager Research Group identifies best-in-breed investment managers and strategies that possess the necessary qualities and characteristics to successfully achieve investment outcomes consistent with stated objectives and appropriate benchmarks.

Lockwood Advisors

Lockwood Advisors, Inc. is a leading provider of managed account solutions. As a program sponsor, Lockwood offers access to some of the industry’s leading investment managers, provides independent research on separate account managers, and develops advisory solutions to help investment professionals meet the diverse needs of their clients. Lockwood also offers discretionary portfolio management solutions through financial institutions and independent registered investment advisers like the Garbacz Group.

Lockwood Advisors work with BNY Mellon Manager Research Group to conduct research with due diligence and monitor each manager, ensuring you are receiving quality guidance. To perform these essential duties, both BNY Mellon and Lockwood employ their experience, analytic technology, and committee-based decision making process.

Lockwood research takes into account multiple strategy inputs as they relate to economic outlook, capital market expectations, asset allocation, and portfolio construction. Lockwood’s Investment Committee considers numerous inputs, data points, and views when making asset allocation or investment research decisions. The Lockwood investment team monitors portfolios and makes investment changes, when necessary, to help properly manage risk in effort to capitalize on opportunities in current market environment.

What Does this Mean for Your Financial Portfolio?

The Garbacz Group’s partnerships with Pershing, BNY Mellon, and Lockwood Advisors provide many benefits to our clients and their portfolios.

Our clients’ financial investments are backed by the financial strength of some of the world’s largest institutions.

Proven product managers oversee each portfolio, providing expert research and monitoring.

Clients have access to a much wider range of innovative investment products and services to structure their portfolio.

With extraordinary financial strength comes extraordinary security and protection of assets and investments.

Structure Your Financial Portfolio with the Garbacz Group

We might have strong relationships with huge financial firms, but the Garbacz Group is a family-owned business that puts our clients first. We take pride in our personalized service-oriented approach and the comfortable advisory relationships we build with our clients.

If you are looking to structure your financial portfolio to achieve your investment goals, we are here for you. Please contact us or call our office at 314.991.1303 to schedule a free personal financial consultation.

You can also email [email protected] for more information.

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For the first time in over four years (since January 2014), the 10-year U.S. Treasury bond  yield has topped 3%. This time, though, things are a lot different. What does the recent rise in Treasury yield mean to investors?

First of all, a Treasury yield is the percentage of return on investment on the U.S. government’s debt obligations. As Investopedia explains, it can also be described as the interest rate the government pays to borrow money for a length of time.

Rates do not have a wide dispersion, but any change is considered significant. The 10-year Treasury is an economic indicator; its yield tells investors more than just their return on investment.

The 10-year Treasury bond yield matters because it is used as a proxy for other financial matters, such as mortgage payments, auto loans, and signaling investor confidence. Typically, Treasury yields rise when the price of bonds falls, so an increase in yields is generally seen as a sign of investors moving into the riskier stock market and therefore is a sign of confidence in the economy. But when market confidence is low, prices go up to match increased demand for this relatively “safe” investment.

This week’s happenings, though, might be a different case. This jump in Treasury yields is the result of the Federal Reserve raising rates, rather than something driven by economic confidence.

Investors faced with a measly 2.5% return on Treasuries were forced into the stock market, pushing stocks even higher. Since this increase was prompted by the Federal Reserve’s actions and that rising yields can make bonds more attractive and discourage borrowing and investing, there is some concern that stocks will collapse.

Source: U.S. Department of the Treasury

To investors, that’s why the 3% level is significant. This increase means that borrowing costs are on the way up. For Wall Street, it’s a warning that higher interest rates might affect corporate profits and that faster inflation is approaching.

CNN Money reports that the Federal Reserve is expected to increase short-term interest rates at least 5 times in the next two years, in an effort to “tap the breaks”. This action will likely lead to higher rates on more long-term treasuries.

Another warning is that short-term rates have also been rising. The difference in yields between short-term bonds and the 10-year note is narrowing, creating what’s known as a flattening yield curve. If short-term rates move higher than long-term rates, the yield curve is headed toward inversion. This is traditionally a sign of impending recession. But don’t panic yet.

A break of round numbers can be misleading, so it is wise to wait for confirmation of a break before reading too much into a few trades. There will likely be people looking to buy the 10-year note just below the 3% yield (as it indicates the top of a more long-term standing range) as well as looking to sell as a stop loss on a breakout above that level.

Conventionally, traders say that the third attempt at any significant point of support or resistance is more likely to succeed than the second (which is this one), so don’t be surprised if yields are pushed back down; a break just above 3 will attract a lot of buyers, decreasing yields before the breakout is established.

According to the Congressional Budget Office, the U.S. budget deficit is poised to surpass $1 trillion by 2020. Meanwhile, the Federal Reserve is cutting down its balance sheet, meaning the amount of net new debt is set to surge in the coming years.

Are U.S. Treasury Securities part of your financial portfolio? Should they be? Contact a Garbacz Group financial adviser for a no-obligation free consultation, including a portfolio review, risk tolerance assessment, and a sample report.

You can also email [email protected] for more info.