Who is MBG?
MBG is the MacroView Bond Group, a division of MacroView Investment Management (“MacroView”).
MacroView is an SEC registered investment advisor. MBG is a subsidiary of MacroView that focuses on fixed income investing for Advisors and their clients.
Is MBG a fiduciary?
Yes. As a fiduciary, MBG puts clients’ interest first.
What is an SMA?
SMA stands for “Separately Managed Account”. An SMA is an account set up in the client’s name and managed per a strategy and specifically to the client’s needs.
How does an SMA compare to a mutual fund or ETF?
Assets in an SMA strategy are customized to the needs of your client. Assets in a mutual fund are pooled from many investors which are managed to a single strategy across all accounts.
How do my clients benefit from working with MBG?
MBG provides SMAs that focus on fixed income investing. Your clients will receive a higher level of dedicated thinking on a specific sector of the investment market. In this case, fixed income.
Clients will gain added benefits from an SMA structure such as:
- Customization – accounts are tailored to the exact liquidity and cash flow needs of the client, with unlimited flexibility
- Greater tax efficiency – ability to work with client’s unique tax situation
- Transparency – client has access to their account to see holdings or any trades placed
- Communication – advisors and clients will benefit from having direct access to the fixed income specialists managing their individual account
- Opportunistic Returns – MBG strives to take advantage of its fixed income expertise to identify opportunities. This diligence enables your clients to earn a meaningful return on those assets deemed “safe”
In the past, Advisors used mutual funds and ETFs as the investment vehicles to invest clients’ fixed income allocation. These were great vehicles in the declining interest rate environment we have experienced for over 30 years.
In today’s environment – with interest rates at record lows – the fixed income strategy must evolve.
We have thought a great deal about this need to evolve our thinking and management of fixed income allocations. We believe we have a beneficial solution.
How are client assets held?
Client assets are held in their own individual name at large, well-known custodians such as Charles Schwab or TD Ameritrade. MacroView is granted Limited Power of Attorney to manage the assets in the account but has no ability to extract funds. Schwab and TD are SIPC-member brokerage firms that provide multi-layer protections against unauthorized activity and cyber theft.
What are the fees and how are they charged? How is MBG compensated?
MBG charges a quarterly fee to your client. This fee replaces – and in many cases is less than – the ETF/mutual fund fee the client is already paying. We strive to offer clients a better product at a cheaper cost.
MBG charges much like a mutual fund or ETF. MBG is compensated by the client directly just as a client compensates an ETF or mutual fund.
MBG charges a quarterly fee directly to the client account, just like a fund or ETF takes its fee out of the NAV.
How can the account be monitored?
- 24/7 electronically through the custodian’s website
- Regular customized reporting directly from MBG
Can I communicate directly with MBG?
Yes. Phone calls and face to face meetings are encouraged. MBG also regularly produces market commentaries and other thought pieces to keep advisors and clients informed of changes in the market and strategy updates.