Managed Fixed Income Portfolio
This portfolio is designed to provide income for investors who possess current cash flow needs, yet have a very low tolerance for risk.
The strategy utilized is conservative portfolio management where the account will be invested in several assets classes; namely, domestic and international corporate bonds, U.S. government bonds, state and local municipal bonds, U.S. agency mortgage bonds, and money market/cash reserve funds.
Additionally, from time to time a modest allocation to equity may be utilized in the portfolio as a means to neutralize the effects of inflation in an income-focused portfolio. Generally, MBT managers will purchase domestically issued bonds that are conservative in nature.
Features and Benefits
The portfolio utilizes bonds that incorporate the following characteristics:
- Low duration (interest rate volatility).
- High credit quality.
- Attractive risk-adjusted yields.
The portfolio also utilizes diversified mutual funds with the following characteristics:
- Superior performance track record in volatile credit markets.
- Consistent management tenure and investment philosophy with regards actively managed funds.
- No sales loads and low internal expenses.