The investment philosophy focuses on constructing investment grade portfolios with, on average, a short-term bond maturity structure, utilizing a yield preference approach. The income generated by this yield preference approach is responsible for the majority of the performance of these accounts. The duration is managed to a target that depends on the shape of the yield curve, lengthening when longer terms offer sufficiently higher yields. Conversely, the duration will be shortened when adequate compensation for longer maturities is not sufficient for taking additional duration risk. Portfolio duration changes will be accomplished primarily through the reinvestment of cash flows and selective trading.
Additional value is added through sector rotation and issuer selection.
All securities utilized are in the investment grade category. All information contained herein is for informational purposes only and should not be construed as investment advice. It does not constitute an offer, solicitation or recommendation to purchase any security or investment advisory services nor shall any such security or investment service be offered or sold to any person in any jurisdiction in which offer, solicitation, recommendation, purchase or sale would be unlawful under the securities laws of such jurisdiction. This Web site is intended for citizens and residents of the United States only. Click here for important legal notices regarding this Web site.