Fixed Income Short Duration Strategy
Emphasis on preservation of capital. Minor principal risk and fluctuation is expected over the intended time horizon (less than 2 years). Portfolio will consist of an allocation of fixed income mutual funds, bonds, and cash. Average returns for this strategy are expected to be low and may or may not maintain purchasing power.
Objective
The Taxable Fixed Income strategy is designed to emphasize current tax-free income with future capital appreciation secondary. Principal risk and volatility are expected and acceptable over the intended investment time horizon of at least three years. The strategy seeks current income and growth through a determined sector allocation and active management. Depending on prevailing market conditions, the strategy may purchase individual bonds or no-load mutual funds to satisfy the sector allocation. We actively monitor the markets searching for the most advantageous opportunity by monitoring yield spreads over a wide range of fixed income vehicles, including U.S. Government securities, corporate bonds – investment grade and high yield, taxable and tax-exempt municipal bonds, mortgaged backed securities, foreign bonds and distressed credits. We remain highly sensitive to our clients’ tax brackets, ensuring that we are investing with a focus on after tax yield. Within our municipal bond portfolios, we purchase high quality bonds with reliable cash flows. We are disciplined in our effort to diversify between general obligation bonds and revenue bonds and remain vigilant of economic developments in the many geographic regions of the state and country.
Philosophy
We adhere to a valuation based approach that strives to capitalize on market inefficiencies. Price volatility benefits our active management strategy as we search for oversold sectors which can add value to client portfolios when the market reverts to the mean.