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Short/Intermediate Term Fixed Income
Performance Objective
The objective of the Short/Intermediate Term Fixed Income strategy is to maintain a relatively high level of coupon income to provide stability of returns over time. This is accomplished by identifying the areas of the yield curve and sectors that will provide the highest returns.
Investment Philosophy
Achieve a high rate of return with minimum risk of loss of capital.
Investment Strategy
Emphasis in the short/intermediate term fixed products is in the 1-5 year area of the yield curve, using sector rotation to take advantage of better relative values. The portfolio is normally laddered with incremental returns derived primarily from sector selection. When a cyclical decline in interest rates is anticipated, maturities between 5 and 7 years may be purchased.
Portfolio Profile
Portfolios include high-quality securities such as:
- U.S. Treasury and Federal Agency securities
- Corporate investment grade securities rated "A" or better
- Corporate securities limited to maximum of 5% per issuer
- Maximum 50% corporate securities of total portfolio
- Fixed Income EFTs (Exchange Traded Funds) where authorized by client
- Average portfolio credit quality is "Aa"
- Bond maturities seven years or less
- No private placements
- No foreign securities or derivatives
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