Fixed Income

Fixed income vehicles play an important role in a diversified portfolio by lowering portfolio risk and increasing the stability of principal and the dependability of income. While managing a portfolio with fixed income, we identify our client's time horizon, risk tolerance, income needs, and tax bracket to determine an appropriate strategy.

Our analysts search for compelling opportunities by carefully monitoring the yield spreads over a wide range of fixed income vehicles and considering the following factors:

• Prevailing Financial Market Opportunities
  Depending on the prevailing market conditions, we may purchase municipal or corporate bonds, treasuries, foreign bonds, high yield or investment grade bonds, mortgage-backed securities, REITS, or other forms of fixed income securities. Individual bonds and/or no-load bond mutual funds are utilized depending on a variety of factors, including: price, asset class, expected holding period, risk, liquidity, and marketability.


• Prudent Bond Management Practices
  The firm's experts actively manage the municipal bond portfolios for our clients. We look for the highest quality bonds that meet our standards for safety: general obligation bonds, education bonds, and utility bonds. We are continually monitoring the California market and keeping investors informed.


• Interest Rate Forecasts
  Bonds are managed by forecasting and evaluating changes in market interest rates. This process allows us to make changes for the benefit of our clients. In a rising interest rate environment, we strive to maintain defensive fixed income positions by shortening maturities and duration. In anticipation of a falling dollar, foreign bonds may be purchased as a hedge against that risk. In a low return environment, we avoid investments that we believe do not offer superior risk/reward characteristics.