Quality Fixed Income

The Quality Fixed Income portfolio invests in investment grade fixed income securities with shorter term maturities to manage risk. This is a conservative strategy concentrated on quality credits. We focus on adding value with security selection, doing our homework on credit quality independent of the investment grade rating. Our metrics of choice are cash flow coverage of debt service and net debt-to-equity. We look to keep the average maturity at approximately three years, and there are no positions in bonds with maturities greater than five years.

We diversify by both portfolio position and sector weighting. We seek to manage to a meaningful yield, and prioritize yield-to-worst and yield-to-maturity over current yield.

Who Invests in the Quality Fixed Income Strategy?

  • Organizations, foundations, and endowments whose Investment Policy Statement requires investment grade bonds
  • ERISA clients
  • Individuals seeking greater diversification in fixed income