Fixed-Income Approach

On the fixed income side, we first look closely at various macroeconomic factors. These factors include monetary policy, yield curves, foreign currencies, politics, economic activity and inflation. Using this information, we then examine current and historical yield spreads and appropriate durations given the macroeconomic environment. Finally, we scrutinize the issuer, grade and overall risk level of specific fixed income issues.

Depending on risk factors, we will utilize government and/or agency obligations, as well as municipal, corporate and convertible bonds when we think it is appropriate. Ultimately our objective is to seek the optimal balance between yield and risk.