Comprehensive Fixed Income Portfolio Management
Internally managed portfolios seek to generate attractive risk-adjusted total returns relative to domestic short- and intermediate-term, investment-grade fixed income benchmarks (taxable and tax-exempt) over a full market cycle. Our basic approach is to ladder maturities across the short to intermediate time horizon (1 to 15 years), dependent on market and economic conditions and unique client return objectives, liabilities and constraints.
Strategic Fixed Income Approach
We are moderately active in our approach and believe interest rate trends are generally longer term in duration. As a result, we look to minimize unnecessary portfolio activity, forecasting potential broad shifts in the yield curve, positioning portfolios in advance of major market moves and allowing these trends to develop over time. By using economic assumptions and projecting the future direction of interest rates and the yield curve, we can extend maturities in periods of anticipated declining rates while shortening maturities in periods of anticipated rising rates.
Fixed Income Process Goals
When investing in corporate debt, Reliance Trust leverages its fundamental equity research to enhance the portfolio’s overall risk/reward profile. Municipal bond portfolios are constructed to enhance the after-tax yield to high-tax bracket investors, with emphasis on the individual client's state of residence. The goal of our fixed income process is to moderate broad portfolio volatility, generate a consistent income stream and protect principal, with capital gains as a secondary consideration. |
