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Fixed Income Strategy
We believe the primary function of bonds is to provide reliable income streams and stability of principal to an investment portfolio. We utilize a buy and hold strategy of staggered bond maturities to meet this need. We do not actively trade bonds as a means to generate principal growth or capital gains in a portfolio.
By using this laddered portfolio strategy, we are able to produce consistent and reliable streams of income, while also providing a stabilizing effect on the principal value of the overall portfolio. We also eliminate interest rate risk, since the staggered maturities allow for regular reinvestment opportunities. If interest rates are on the rise, we are able to capture those increased yields as bonds mature in regular cycles. If interest rates are falling, we keep the bulk of the portfolio locked in at the higher rates.
For most clients we suggest a laddered portfolio of bonds with annual maturities extending out ten to fifteen years, depending on the objectives of the client, economic and business conditions, and yield curve fluctuations. This allows us to maximize return and minimize risk by capturing significant intermediate term yields, without exposure to the more volatile long term segment of the bond yield curve.
Equity Strategy
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Income Strategy >>
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