[ A look under the hood. ]
Our bond strategies allow you to benefit from the stability of high-quality securities while maintaining a consistent, predictable level of income.
We operate an in-house fixed income trading desk, allowing us to provide you with custom-tailored, total-return bond strategies and to avoid the additional fees and unnecessary trading of outside managers.
We focus on high-quality, intermediate-term bond portfolios designed to provide current income and principal security that create stability within your overall investment strategy. Our approach is applied to both taxable and tax-exempt bond portfolios.
While we target an intermediate-term average maturity, we constantly monitor the economic environment and make adjustments to duration and credit quality when necessary to control the risk associated with an increasingly volatile interest rate cycle.
Characteristics of Core Fixed Income
- We ensure appropriate maturity/duration in line with our interest rate outlook.
- We emphasize quality securities with a focus on managing duration and credit risk.
- We use U.S. Government and Agency bonds for stability and to help neutralize market volatility.
- Investment-grade and high-yield corporate bonds provide incremental return.
- When tax advantages are important, we use municipal bonds.
- We balance active management of individual bonds with low-cost index-based funds for broad diversification, risk management, cost control, and added liquidity.