investment STRATEGIES

Fixed Income

 


Core Fixed Income

Core Fixed Income

Objectives

  • Provide the highest possible return while minimizing the risk to principal

  • Stability of income and principal

Process

  • Top-down, macro-economic outlook drives sector allocation and yield curve positioning

  • A bottom-up survey of analysis of individual securities populates the portfolio

Characteristics

  • Composition: U.S. dollar-denominated investment-grade bonds across the full maturity spectrum

  • Positions: 40 to 60

  • Turnover: 30 percent including maturity reinvestment

  • Average maturity: Six-to-nine years

  • Benchmarks: Bloomberg Barclays Capital Aggregate or Bloomberg Barclays Government/Credit Index

Team
Brad Houle, CFA, lead
Joe Brooks
Blaine Dickason
Jade Thomason

Updated annually. Data as of January 1, 2023.



Core-Plus Fixed Income

Core-Plus Fixed Income

Objectives

  • Increase return potential through inclusion of high-yield fixed income vehicles

  • Employ bonds across the full rating spectrum

Process

  • Top-down, macro-economic outlook drives sector allocation and yield curve positioning

  • A bottom-up survey of analysis of individual securities populates the portfolio

Characteristics

  • Composition: U.S. dollar-denominated debt

  • Positions: 40 to 70

  • Average maturity: Six-to-nine years

  • Turnover: 30 percent, including maturity reinvestment

  • Benchmarks: Bloomberg Barclays Capital Aggregate Index

Team
Brad Houle, CFA, lead
Joe Brooks
Blaine Dickason
Jade Thomason

Updated annually. Data as of January 1, 2023.



Intermediate Fixed Income

Intermediate Fixed Income

Objectives

  • Provide the highest possible return while minimizing the risk to principal

  • Stability of income and principal

Process

  • Top-down, macro-economic outlook drives sector allocation and yield curve positioning

  • A bottom-up survey of analysis of individual securities populates the portfolio

Characteristics

  • Composition: U.S. dollar-denominated investment-grade bonds maturing in 10 years or less

  • Positions: 40 to 60

  • Turnover: 30 percent, including maturity reinvestment

  • Average maturity: Three-to-six years

  • Benchmarks: Bloomberg Barclays Capital Intermediate Government/Credit Index

Team
Brad Houle, CFA, lead
Joe Brooks
Blaine Dickason
Jade Thomason

Updated annually. Data as of January 1, 2023.



Municipal Bonds

Municipal Bonds

Objectives

  • Provide stability and tax-free income

  • Maximize after-tax return and income through customization

Process

  • Both top-down and bottom-up approach to yield curve positioning

  • A bottom-up approach to bond selection

  • Careful credit analysis to minimize risks

Characteristics

  • Composition: investment-grade securities issued by local governments

  • Diversification by region and issuing municipality

  • Mix of General Obligation bonds (tax based) and essential service revenue bonds (water, sewer and utility).

  • Positions: 30 to 60

  • Turnover: 15 percent, including maturity reinvestment

  • Benchmarks: Bloomberg Barclays Capital Intermediate-Short Municipal Index

Team
Joe Brooks, lead
Blaine Dickason
Brad Houle, CFA
Jade Thomason

Updated annually. Data as of January 1, 2023.