The primary goal of fixed income management is to achieve investment returns commensurate with the risk assumed.
Our Fixed Income philosophy, whether taxable or non-taxable, is primarily one of prudent risk management: seeking to evaluate the prevailing interest rate landscape with particular attention on the risk associated with credit spreads and the impact of yield curve changes.
We believe the fixed income portion of an allocation is not the place to assume additional risk, but where value can be added over the interest rate cycle through:
- Timely Shifts in Duration
- Credit Exposure
Significant consideration is given to the present and future liquidity of the selected securities, as well as the current economic conditions.
We also strive to maintain market comparable total returns, as most clients wish to achieve effective and rewarding diversification as part of the overall investment objective. We continuously work toward meeting these requirements through the disciplined purchase and rotation of U.S. Government, Agency, mortgage-related, and high quality corporate securities. Using a combination of our own internal analytical models and our own experience based professional judgment; we ascertain those securities that may have potential for superior returns. We then carefully construct our bond portfolios in a manner that strives to keep aggregate market value volatility to acceptable levels and maintain a high degree of liquidity and versatility.