Fixed Income

Fixed Income securities represent the longer term debt obligations of a company, public agency, or government.  Fixed income securities such as bonds, preferred shares, or TIPS allow issuers, or borrowers, to finance long term investments with external funds.  Fixed income securities come in many varieties, however most pay periodic interest payments, called a coupon, and come due for repayment at some future maturity date.  In addition they may have any number of features, such as call or convertibility provisions, or have floating coupon payments that are tied to a specified interest rate or other benchmark. 

Our domestic fixed income exposure incorporates both individual securities as well as exchange traded funds, which are low cost vehicles that replicate bond index returns.  Where we invest in individual fixed income securities, we prefer those that include attractive return features such as convertible bonds, or tax benefits, such as preferred securities.  We also provide investors with currency hedged exposure to foreign fixed income markets through exchange traded funds.

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