For two decades, banking executive Colin Robertson has managed fixed-income investments at Chicago-based Northern Trust Global Investments, now called Northern Trust Asset Management. Promoted to the position of managing director of fixed income in 2003, Colin Robertson manages 68 employees based in Chicago, London, and Bangalore, India, while closely following global developments that impact bonds and fixed income.
Fixed-income products are dependable investments that typically generate a certain, or fixed, level of returns. These include bonds issued by the United States Treasury or other agencies as well as certificates of deposit (CDs). Fixed-income bonds and CDs allow investors to diversify their portfolios, preserve their principal investment, and receive reliable income.
Ideal for saving for large future expenses such as retirement, bonds pay the investor a series of scheduled payments and return the bond’s value upon the maturity date. Bonds also offer tax savings to investors in cases where the associated payments are not subject to federal or state income taxes.
CDs also pay a predetermined amount of interest and return the principal and interest funds to the investor on the CD maturity date. Since CDs are insured by the Federal Deposit Insurance Corporation, they provide an extra layer of security for investors who do not like risk.