Investment Objectives - Fixed Income

  • The primary objectives when investing in fixed income securities are the preservation of capital and the generation of income.  Our philosophy is to take what the fixed income markets give us and not to overreach for yield at the expense of credit quality or yield curve risk.  Fixed income investments are the anchor that keep a portfolio from being swept away in times of market turmoil.  Under-allocation or poor security selection weaken the hold of that anchor.  We are diligent to avoid both.
  • The selection of individual fixed income securities should focus on safety of principal, adequate liquidity and income.  These three objectives are best achieved by investing in high quality (investment grade), highly liquid securities of short to intermediate maturity (3-12 years).
  • The process of fixed income security selection involves yield curve optimization achieved through a laddering of maturities with a never-ending focus on credit quality.

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