Overview of Investment & Portfolio Consultants Limited

David Crystal and Zev Crystal for the over 38 years have been actively involved in the ‘debt capital markets’ specialising in the trading of interest rate products and asset management. They founded Investment & Portfolio Consultants Limited (“IPC”) in London, in 1995. IPC has been authorised and regulated since 1995, currently by the FCA but previously the FSA, SFA and IMRO.

IPC specialises in bespoke bond portfolio management in the global Government & Corporate bond markets, for institutional clients, private banks and family offices.

IPC’s product speciality is in bonds from ‘AAA’ Governments & Agencies, Investment Grade Corporate bonds, ‘BB’ Non Investment Grade / High Yield bonds. Investments are primarily US$, Euro and GBP but may include other currencies. China / Asia in USD has become a core and strategic market for IPC.

IPC’s predominant focus is Europe, North America and core Asia (“regions”).

Continuous credit research and analysis is essential to the implementation and continuous management of investment strategies.

Core to IPC’s philosophy, is as vital as achieving a higher yield, is the protection and safety of the client’s principal. Each client’s portfolio is unique. IPC builds on the client’s own investment parameters especially as it relates to the risk taken versus the reward achieved. IPC’s superior knowledge and experience of what drives the risk reward, enables IPC to achieve a higher rate of return and lowering the risk.

Portfolio Management

Methodology

IPC’s portfolio management approach begins with understanding and assessing the client’s investment parameters, including cash flow requirements; reference currency; credit quality and risk/return sensitivity with respect to credit, yield and maturity. A portfolio which is bespoke and diversified (the “Portfolio”) is then developed and continuously managed with appropriate ‘switches’ to enhance and maximise the client’s total return.

IPC’s very special knowledge and understanding of how to compose and mix the different bond holdings, enables IPC to create a portfolio with the client’s desired returns and risk profile, ensuring clarity to the risks, short and long term that might compromise desired returns.

By tailoring the combinations of maturity, credit rating, diversification by sector, region, and mixing percentages of exposure to specific borrowers, industry, country and the capital structure of the individual bonds, enables IPC to meet the client’s desired portfolio risk return.

Portfolios are reviewed and updated, as events unfold in the global markets or due to changes of client’s needs or desired risk returns.

Optimisation

IPC’s objective is to buy and sell for client portfolios, the appropriate bonds, at the best possible price in the following ways:

We do our own credit work and determine the bonds that will best meet the portfolio’s parameters. Based on the results of our credit work, IPC will determine the correct credit spread, thus determining the price the bond should be purchased. We then source the bonds through our significant relationships with banks and market makers globally, to determine who has a position or is prepared to quote competitively. We may also leave ‘limit orders’ with the trading / sales desks who try and source from their client portfolios.


Credit Approach

Continuous in-house and third party credit research and analysis is decisively important to the determination of the Portfolio’s over all composition and ongoing management.

This process also indentifies new and attractive bonds to add to the Portfolio or switches in the portfolio to pick up yield or change duration.

Each portfolio is specifically diversified by country, borrower, industry sector and credit agency ratings.

IPC’s relationship with a significant number of banks and market makers globally enables IPC to access a wide variety of prices, research and information, including macro analysis; asset allocation; country, industry and sector analytics; specific company research; foreign exchange; trade flows and new issues.

IPC is able to directly trade 24/7 in the three major trading centres and many regional financial centres through its global trading relationships.

IPC Clients

IPC has successfully been providing its services to a select group of institutional clients, private banks and ‘family offices’ for over 24 years.

IPC manages but does not hold client assets or monies. IPC liaises with its client’s custodian(s) to ensure the timely settlement (always DVP/RVP) of transactions.