Fixed Income Management 

Taxable Management

Our core fixed income investment philosophy is that a portfolio of high-quality fixed income securities with short-to-intermediate term maturities can provide a steady income stream with limited risk.  Based on this philosophy, we develop a detailed investment strategy tailored to meet each client’s individual income needs and tax situation.  The portfolio is primarily comprised of U.S. Treasury and Agency securities which eliminates credit risk.  These securities are laddered in a short-to-intermediate term maturity structure with similar amounts maturing at yearly intervals.  This approach minimizes the client’s exposure to the risk of interest rate fluctuations.  As bonds mature, proceeds are reinvested at the long end of the maturity ladder.  The income stream generated from this type of portfolio is relatively constant because only a small portion of the portfolio is reinvested each year. 

 

Tax-Exempt Management

For clients in a high-income tax bracket, we manage state specific municipal bonds that seek to maximize after-tax returns. We invest in only the highest quality securities from the strongest issuers within the appropriate state.

Tax-exempt portfolios are constructed and managed utilizing the same processes we employ for taxable portfolios, but with an increased emphasis on income. We seek to add value not only through duration management of maturity selection, but also through prudent security and coupon selection as well as call protection.