Hardeep Walia, Motif's chief executive

Motif Investing launches fixed income products

Motif Investing has launched 10 fixed income motifs, specialised portfolios of bond exchange-traded funds tied to certain macro-economic trends.

These new motifs offer an easy and economical way for investors to add fixed income to their holdings.

"In today's volatile markets, investors are increasing their allocation to fixed income," says Hardeep Walia (pictured), Motif's chief executive. "We now offer customers a chance to invest in motifs based on bond ETFs in the same, intuitive way they invest in equity-based motifs on the Motif site, tracking real-world trends."

Motif's fixed income offerings are created in the same way stock motifs are built: the company's investment team searches for real-world ideas and trends that can be turned into investment opportunities. Stock motifs—customisable portfolios of up to 30 stocks—are built around wide-ranging, everyday concepts like junk foods, electronic payments or income inequality. Fixed income motifs track more fundamental economic topics, like inflation, deflation, and AMT (alternative minimum tax). Fixed income motifs also include up to 30 securities, but they are constructed from bond ETFs.

Motif enables investors to customise their fixed income motifs, just as they can with stock motifs. An individual can even customise their own fixed-income "ladder" within a motif, adjusting maturities and ETF weights to meet their own risk-return needs.

An entire fixed income motif can be bought for USD9.95. There is a USD250 minimum investment per motif but there are no minimums to open an account at this time.

The new motifs include:

 • Inflation: includes bond ETFs that hold TIPS (Treasury Inflation Protected Securities) and similar foreign government-issued bonds designed to hedge against inflation. The average one-year return of the ETFs in this motif is 7.42 per cent.

 • American Bonds: includes US government and corporate bond ETFs that provide a safe haven against stock market volatility. The average one-year return of the ETFs in this motif is 7.93 per cent.

 • AMT-Free Munis: designed to help investors subject to the alternative minimum tax capture some tax-free interest income. The average one-year return of the ETFs in this motif is 8.16 per cent.




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