Quality Fixed Income – attractive current income, with long-term preservation of capital
The Quality Fixed Income strategy seeks attractive current income and long-term preservation of capital through investment across a broad range of bond market sectors. Diversification is a key aspect of the strategy, as we seek to control exposure to a variety of risk factors, including credit risk, interest rate risk, inflation and deflation.
Bond market sectors represented in the Quality Fixed Income strategy include: national and home-state tax-free municipal bonds (for taxable accounts), US Treasury fixed-rate and inflation-indexed securities, mortgage-backed securities, investment-grade and high-yield corporate bonds, and foreign-currency-denominated bonds. The chart below provides a sample portfolio allocation for illustrative purposes.
We implement Quality Fixed Income portfolios using a combination of individual bonds and low-cost, liquid mutual funds, including exchange-traded funds (ETFs). (Smaller portfolios may be invested exclusively in such funds.) Our “prime brokerage” capabilities enable us to seek the best available bond prices from multiple bond dealers, while keeping all client bond holdings consolidated in a single account with a third-party custodian.