Fixed Income Securities in Goals-Driven Wealth Management

Banking executive Colin Robertson is an executive vice president at Northern Trust in Chicago. From his office in Chicago, Colin Robertson oversees the firm’s fixed income investments.

Fixed income investments are usually low risk and include quality fixed income securities and cash.

They have an unassailable role in goal-oriented wealth management, which is to meet near-term goals such as medium-sized purchases. They are different from higher risk assets like global equities and high yield bonds. These are also included in wealth management, but are used to fund longer term goals because of the higher return premium on equities.

However, while fixed income investments are low risk, that does not mean they are risk free. Risks that could undermine their performance are inflation, default by issuing institutions, rising real interest rates, taxation, and lack of liquidity. Because principal amounts are used primarily to meet near term needs, it is absolutely crucial to protect them from these risks, offering a positive return even in distressed economic times and despite taxes and inflation.

Ultimately, no single fixed income asset can achieve this on its own. That’s why a mix of fixed income assets is appropriate. A good mix usually includes inflation-protected treasuries, liquid securities, tax-efficient bonds, and low duration investment grade bonds, to mitigate real interest rate risk. The risk of default is kept to a minimum by selective preference for assets with high credit quality.

American Bankers Association Advocacy Goals

A Chicago-based banking executive, Colin Robertson has spent the last two decades of his career in the Chicago offices of Northern Trust. In addition to his work at Northern Trust, he stays apprised of new developments in the banking industry through membership in organizations such as the American Bankers Association. Colin Robertson also serves on the organization’s advisory board.

The American Bankers Association advocates on behalf of the banking industry to Congress as well as state legislative bodies, seeking to ease the regulatory burden on financial institutions and improve the ability of the industry to serve customers. The association also serves banks as they adapt to new rules, such as recent changes to the American tax code.

Some areas of advocacy include:

- the reduction of overall regulation, and the targeting of remaining regulation to better suit the charter, scope, and geography of individual banks and their service areas
- stricter liability rules for non-banking organizations subject to data breaches
- the end of the credit union tax exemption
- a reconsideration of the Farm Credit System
By pursuing these policy goals, the American Bankers Association hopes to change banking for the better for all stakeholders.

Northern Trust Promotes Socially Responsible Investment

Based in Chicago, banking executive Colin Robertson serves as the managing director of fixed income for Northern Trust. In the Chicago office, Colin Robertson oversees some 68 employees. 

Out of respect for the global community, Northern Trust encourages socially responsible investing (SRI). For over 25 years, the firm has emphasized environmental, social, and governance (ESG) factors when it creates stock portfolios. 

It pursues these goals by vetting companies for their adherence to ESG principles, following strategies that produce socially beneficial returns, and selecting from indexes such as the Domini 400. Northern Trust also supports shareholder voting to change corporate priorities. 

The bank screens out investments in a wide range of categories, from tobacco and pornography to discrimination and arms-dealing. It also turns down industry sectors such as gambling, firearms, and nuclear power. 

Instead, Northern Trust looks for choices that benefit society, such as clean energy, human rights, product safety, and diversity on boards of directors. Desirable companies tend to be innovative, quality-oriented, and maintain good community and employee relations. 

Northern Trust also chooses companies with some good environmental practices that may be otherwise screened out, such as extractive industries. This best-of-sector approach encourages businesses to upgrade their environmental and governance performance.

American Bankers Association Hosts 2017 Conference in Chicago

A graduate of Northwestern University’s MBA program, Colin Robertson serves as executive vice president of Northern Trust, located in Chicago, Illinois. A professional in the Chicago area for more than two decades, banking executive Colin Robertson serves as a board member for the American Bankers Association(ABA) investment advisory committee.

Representing America’s bankers, the ABA offers training, information, and resources for its members. It represents more than two million banking professionals, who work for institutions that hold almost $17 trillion in assets and safeguard nearly $13 trillion in deposits.

Every year the ABA sponsors a national conference where members gather, network, and learn about changes within the banking industry. The 2017 annual conference is scheduled for October 15-17 at the Hyatt Regency Chicago. This event includes general sessions that focus on political and economic trends and forums that feature moderators who are experts in banking. Featured speakers include Tom Ricketts, executive chairman of the Chicago Cubs; General Michael Hayden, former director of the Central Intelligence Agency and National Security Agency; and Marcus Lemonis, host of CNBC’s “The Profit” as well as CEO and chairman of Good Sam Enterprises and Camping World.

Where Will Interest Rates Go in 2017-2018?

Colin Robertson serves as managing director of fixed income investments for Chicago’s Northern Trust Asset Management. The banking executive’s major responsibility is overseeing the department handling bonds and other fixed-income instruments. Also in close contact with his Chicago clients and internal partners, Colin Robertson continues to keep a close eye on economic forecasts.

One Forbes commentator projected the future of interest rates for 2017-2018. He predicts no rate hikes in 2017, doubting the Federal Reserve’s prediction of two more increases before the end of the year. 

The observer maintains that the Fed is inaccurately predicting the pace of continued economic expansion. He notes that discretionary spending by business is still down. Reflecting this shortfall are problems in hiring, new building construction, and buying more equipment and IT systems. These weak performances mirror uncertainty about the economy. 

Foreign and economic policy remain unclear, affecting export-import activity and the transport and warehousing sectors. Still-evolving immigration rules may impact construction, agriculture, and the hospitality industry.

Doctors and physicians have also expressed concern for the national healthcare system, and changes in governmental policies are likely to influence the banking industry, education, and utilities to an unknown degree. 

However, next year economic uncertainty should ease, leading to a more robust strengthening. 2018 should bring about more rate increases from the Fed.

Financial Technology - an Important Business Trend in Global Economies

For Colin Robertson, a banking executive at Northern Trust in Chicago, work is almost as enjoyable as play. Colin Robertson carries over his work for clients in Chicago and beyond to his favorite after-hours entertainment – pursuing knowledge about business and financial trends relevant to clients and economies inside and outside the United States.

On March 9, 2017, the US Federal Trade Commission held the third in its series of three public forums on financial technology at the University of California, Berkeley. The forum, Artificial Intelligence and Blockchain, focused on the consumer implications of these developing technologies and examined how they may be used to serve and protect consumers.

In November 2016, the US Securities and Exchange Commission (SEC) held a financial technology public forum at its Washington, DC, headquarters. The SEC says that the forum was designed to foster collaboration among regulators, entrepreneurs, and industry experts, and to evaluate how government regulations can best address innovations in the financial services industry.

The World Economic Forum follows this trend at the global level. The nonprofit organization, headquartered in Geneva, Switzerland, recently identified the world’s financial technology hubs as demonstrated by market size, investment, and staffing. The United Kingdom tops the list, followed by California, New York, Singapore, Germany, Australia, and Hong Kong.

Three Investment Tips for First-Time Investors

Colin Robertson is a banking executive in Chicago who currently works as the Managing Director of Fixed Income at Northern Trust Global Investments. Even outside of work, Colin Robertson considers investing and keeping up with the stock market a hobby. 

If you have never invested in the stock market, it can seem like a confusing, daunting challenge. These three tips will help ensure you are off to a good start. 

1. Consult a Professional - Even after studying the stock market and learning the lingo, speaking to a pro can help you determine your options. Investment advisors and professionals will be able to give you in-depth information regarding the types of accounts to open and different investment methods, illuminating the benefits and drawbacks of each. 

2. Leave Emotion Out of Investing - Successful long-term investments often require the ability to control your emotions and avoid acting on fear, rumors, or speculation. Company stock prices often reflect a right-now mentality. If investors are worried about the future of the business, stocks lower. If the future looks bright, share prices rise. Before investing, determine your expectations regarding return. Know at what point you will sell, either at a loss or profit, to avoid having to make that decision later when emotions are high. 

3. Start Now - Whether you are a 20-year-old student working as a barista at the local coffee shop, or a highly-successful executive on a six figure salary, now is the time to start investing. Generally speaking, the longer you invest, the more money you will make. Thanks to compounding rates of return, investing $25 a month now would likely provide higher returns than waiting and investing more later in life.