A Conservative Approach to a Conservative Asset Class

It is our belief that the role of a core fixed income portfolio should provide current income, capital preservation, and diversification when combined with other asset classes. The ATManaged Fixed Income Portfolios are designed with this in mind. We focus on the intermediate portion of the interest rate curve, an area that has historically allowed investors to capture the majority of the “slope” of the yield curve without being subjected to undue interest rate risk. We concentrate on high quality securities to eliminate volatility due to major credit deterioration. We control our maturity structure to eliminate major reinvestment risk. We combine these basic tenets with our focus on duration management and we are able to provide investors with a core bond solution that can either stand on its own or compliment an otherwise all equity portfolio. Click here to request a full composite fact sheet.

Investment Objective
Our goal in the ATManaged Fixed Income Portfolios is to provide current income and consistent risk-adjusted returns investing primarily in government and corporate bonds, seeking to outperform the Barclay's Capital Intermediate Govt/Credit Index over a full market cycle.

Philosophy

• Generate suitable levels of current income
• Control risk and volatility by concentrating on the intermediate area of the yield curve
• Invest primarily in government, corporate, and mortgage-backed securities
• Maintain high quality throughout the portfolio (Portfolio average quality of “AA” or better)
• Focus on inefficiencies in relative valuation and historical yield spreads
• Modest duration adjustments when economic conditions warrant

Portfolio Structure

• Portfolio concentration will depend on size
• Maintain portfolio mix similar to the Barclay's Capital Intermediate Govt/Credit Index
• Portfolio duration between 3-6 years
• Active cash allocation