BondWave - Fixed Income Portfolio Solutions

Frequently Asked Questions

Overview: What are Program Portfolios?
How do Program Portfolios work?
What is BondWave Advisors’ role in Program Portfolios?
What investment strategies are available within Program Portfolios?
How are Program Portfolios “white-labeled” for the Advisor?

Program Monitoring, Notification, Proactive Trade Opportunities: How does BWA monitor Program Portfolios?
What messages does the Advisor receive?
Does BWA recommend specific bond offerings for portfolio realignment?
Who executes the trades?
How does the broker-dealer or service provider assist?

Program Portfolio Setup: How are Program Portfolio accounts charged?
How does BWA get the Advisors’ accounts and holdings information?
Is there any software that needs to be installed in the RIA office?
Does Program Portfolios contain total return statistics?
What asset categories are included in Program Portfolios?

Overview

What are Program Portfolios?: Program Portfolios are Advisor-directed individual bond accounts that are created and managed for each client using a model-based investment strategy. Program Portfolios allow Advisors to maintain control of assets and direct the investment process, which includes strategy selection, portfolio monitoring services, customized electronic messaging and reporting. Program Portfolios enable the Advisor to offer a coordinated, white-labeled investment solution to clients who seek a flexible and cost-competitive approach to fixed income investing.

How do Program Portfolios work?: Once an RIA has executed an advisory agreement with BondWave Advisors (BWA), advisors may subscribe their clients to a desired program through Program Builder, a web-based subscription and management portal. BWA will monitor Program Portfolios every day for breaches to the program guidelines. The Program includes white-labeled electronic communication and client-ready reports that reduce the Advisors’ portfolio management workload and allow more time for client interaction. Throughout the process, the Advisor maintains control of the client relationship, maintains control of the assets and provides a high-degree of personalized investment service to the client.

What is BondWave Advisors’ role in Program Portfolios?: BWA serves as a consultant and advisor to RIAs during development and ongoing management of Program Portfolios. BWA will create individual bond investment programs that mimic the RIA’s desired fixed income offerings. BWA will monitor each Program Portfolio at a predetermined schedule and will alert the Advisor when maintenance or rebalancing activity is recommended or for other breaches to the selected program guidelines. BWA will review the programs and strategies with the RIA on a periodic basis to help maintain appropriate investment offerings.

What investment strategies are available within Program Portfolios?: BWA will provide consulting and advisory service on the types of investment programs that an RIA offers to clients. If the RIA already has existing fixed income allocation models, BWA will work with the firm to replicate and enhance its portfolio benchmarks and define the related Program Portfolio offerings. Additionally, BWA maintains a number of Indexed-Targeted Programs that may be offered to clients.

How are Program Portfolios “white-labeled” for the Advisors?: BWA will include the RIA’s desired investment program options within Program Builder. BWA will customize client-ready electronic correspondence and reports according to the RIA’s branding requirements.

How does BWA monitor Program Portfolios?: BWA uses a daily automated monitoring process to help maintain Program Portfolio alignment. If a portfolio slips beyond one of the strategy “guardrails”, BWA will send a customized electronic alert to the Advisor with a detailed report that highlights the breach and identifies potential action for the account.

What messages does the Advisor receive?: BWA will send electronic alerts to the Advisor to identify recommended maintenance and rebalancing activity as well as breaches to program guidelines. When a breach occurs, customized reports will identify the type and attributes of bonds necessary to address the breach. In addition, the Advisor will receive alerts whenever new client reports are available in the Program Builder portal.

Does BWA recommend specific bond offerings for portfolio realignment?: The Advisor is responsible for specific bond recommendations and executions. BWA provides a report that identifies the bond types and attributes with which the advisor can use to filter and select bonds from their preferred offerings platform. With prior approval from the RIA, BWA will send a proposal alert message to a participating broker-dealer. The broker-dealer will then send a proposal to the Advisor that identifies specific bond offerings that meet the portfolio rebalancing or maintenance requirements. Thus, the broker-dealer will proactively work to assist the Advisor in appropriate trade opportunities.

Who executes the trades?: The decision on execution of the trades is with the Advisor and the trading partner of his/her choice.

How does the broker-dealer or service provider assist?: BWA will share RIA Program Portfolio needs directly with the broker-dealer or service provider who can work directly with the RIA to address the trade opportunities identified during daily account monitoring.

How are Program Portfolio accounts charged?: BWA charges a nominal annual fee on total market value of the account, billed quarterly in advance directly to the Advisor. Similar to a separately managed account, BWA encourages the Advisor to maintain a separate account for assets linked to a Program Portfolio strategy.

How does BWA get the Advisors’ accounts and holdings information?: With prior approval from the RIA, BWA will retrieve daily file updates on accounts and holdings positions from the broker-dealer or service provider. These files will update BWA’s Program Portfolio system, and subsequently update Program Builder, the Advisor’s “dash board” to the Program.

Is there any software that needs to be installed in the RIA office?: No. The Advisor will receive a login and password to the Program Builder portal. Once logged in, the Advisor will see all of their accounts and the subset that are subscribed to Program Portfolios.

Does Program Portfolios contain total return statistics?: Total return numbers for accounts subscribed to Program Portfolios would be available through the broker-dealer or service provider's existing account reporting services.

What asset categories are included in Program Portfolios?: Program Portfolios may include:
- Tax-free and taxable Municipals
- US Governments
- Sovereigns
- US Agencies
- Brokered Certificates of Deposit
- Corporates
- Selected short-term cash equivalents