Fixed Income

We believe that high-quality bonds are the best hedge against the volatility of common stocks.  The majority of our fixed-income investments share the following characteristics:

  • High Credit Quality
  • Lower Interest Rate Sensitivity
  • Diversified Exposure to Governments, Agencies, TIPS, Corporates and Municipals
  • Passive ETFs

Our goal is to achieve capital preservation and moderate levels of income.  The majority of investments are concentrated in passive Exchange Traded Bond Funds(as of 12/31/17).

Untitled Document
Characteristics Taxable Model Tax-Exempt Model
Credit Quality Average AA AA
Yield to Maturity 2.5% 2.4%
Effective Duration 3.8 3.5
Top 3 Holdings  VTEB, SHM, SPIB SPIB, SPSB, VMBS