Tealwood’s fixed income portfolios are most often utilized as part of an asset allocation strategy to help manage risk and defend over a period of years. We focus on adding value with security selection by doing our homework on credit quality independent of the bond rating. The primary consideration is return of principal, and secondarily return on principal, with the intent of holding portfolio positions to maturity. While there may be market fluctuations in bond values prior to maturity, these fluctuations are of little concern.
The average length to maturity in our fixed income portfolios is approximately 2 to 2.5 years, which is designed to be shorter than what is typically seen in the marketplace. There are no portfolio positions with maturities greater than five years.
Tealwood has two fixed income strategies: Defensive Fixed Income and Quality Fixed Income
Who invests in Defensive Fixed Income?
- Those who want a portion of their investable assets working to defend against risk
- Those looking to add value over what is typically earned in short-term Treasuries or CDs
Who invests in Quality Fixed Income?
- Organizations, foundations, and endowments whose Investment Policy Statement requires investment grade bonds.
- ERISA clients
- Those seeking greater diversification in fixed income