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In calm seas all captains look good. Our ability to weather difficult markets and invest prudently is a distinct added value for our clients.
— Joseph Patterson

Customized Solutions to Meet Client Objectives

Historical performance analysis confirms that returns in the investment-grade fixed income markets primarily flow from duration and sector decisions. Consequently, we employ a top-down approach in constructing portfolios: first making duration and sector decisions; then choosing issues that align with our sector, duration, and quality decisions. Further, we believe that our clients' choice of benchmark is indicative of their investment risk tolerance, not only a performance goal to beat. Accordingly, we focus on issues represented in our clients' chosen benchmarks.

In order to meet the individual investment goals of our clients, we offer a high-quality line of products covering the full maturity spectrum. The firm's investment approach is consistent across all of its products, which are distinguished primarily by the maturity range of investments. Therefore, market and security research, portfolio construction, trading and ongoing risk oversight are done collaboratively by the investment team. We emphasize investment-grade index eligible securities, and have no exposure to derivatives — futures, options, CDS, CLOs, CDOs, etc.
 

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Active Core

 

     (AC)    

 
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Intermediate (INT)

 

Composite Inception: 1/1/88
Yield to Maturity: 2.85%
Duration: 5.51 years
Average Quality: Aa2

The investment objective of the Active Core strategy is to exceed the returns of the Bloomberg Barclays Aggregate Index over a market cycle.

 

Composite Inception: 1/1/88
Yield to Maturity: 2.54%
Duration: 3.31 years
Average Quality: Aa3

The investment objective of the Intermediate Maturity strategy is to exceed the returns of the Bloomberg Barclays Intermediate Gov/Credit index, or the corresponding ICE BofAML index.

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enhanced short maturity    

(esm) 

 

 
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multi- discipline strategy (MDS)

Composite Inception: 1/1/88
Yield to Maturity: 1.91%
Duration: 1.26 years
Average Quality: Aa2

The investment objective of the Enhanced Short Maturity strategy is to exceed the returns of the Bloomberg Barclays 1-3 year Gov/Credit index, 1-3 year Treasury index, or corresponding ICE BofAML indexes.

 

Composite Inception: 1/1/98
Yield to Maturity: 2.02%
Duration: 1.08 years
Average Quality: Aa2

The investment objective of the Multi-Discipline Strategy is to produce positive rates of return in any interest environment. The strategy uses rules driven active duration management to reduce portfolio duration as rates are rising, and extend duration when rates are falling. Duration could range between one and five years and a custom index is used that reflects changes in the portfolio’s duration target.

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short/ intermediate maturity strategy (sims)

 
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custom investment approaches

Composite Inception: 4/1/02
Yield to Maturity: 1.92%
Duration: 2.00 years
Average Quality: Aa2

The investment objective of the Short/Intermediate Maturity Strategy is to exceed the returns of the Bloomberg Barclays 1-5 year Gov/Credit index or corresponding ICE BofAML indexes.

 

The firm also offers custom approaches for clients whose specific investment parameters and goals aren't satisfied by typical market benchmarks.

All portfolio statistics above are as of 6/30/18.