Methodology
- The Fixed Income Strategy is a broad range of short to intermediate duration bonds that are actively managed to maximize current income.
- Although the strategy is focused on current income, the manager will be able to take advantage of capital appreciation opportunities that are presented.
- The strategy is structured to provide liquidity when needed.
- The goal of the overall fund is to maintain an A average credit rating, although the manager has some flexibility to go one notch below based on market opportunity.
- The fund looks to exploit relative value opportunities arising from when the manager feels certain securities are mis-priced.
Bond Selection Process
- Top-Down Sector Approach: Determine and overweight sectors the manager feels are either mis-priced or provide a risk/return premium.
- Bond and Fixed Income Analysis: Leverage the Fixed Income and Bond Analysis resources available for fundamental analysis of Bonds and Fixed Income options.
- Bottom-Up Construction: Each security is selected leveraging the research available through our research partners. Once allocations are met, we identify individual securities that meet the needs of the strategy while maintaining that no position is greater than 5% of the strategy
Bond Parameters
Credit Quality – A Average (Moody’s & S&P)
Credit Asset Class – Treasuries/Agencies/Mortgages/Corporates
Average Duration – 4 Years
Index Benchmarks
100% – Barclays Aggregate Index
Definitions
Barclays Aggregate Index – Is an unmanaged index is a broad-based fixed income index used by bond traders to measure their relative performance.
Weighting – Percentage of a security.
Market Capitalization – The total dollar market value of a company’s outstanding shares; represents a company’s size.
Beta – Measure of volatility in comparison to the market.
Yield – Interest paid on debt securities.
Other Strategies
Past performance does not guarantee future results. There is no assurance the strategy will meet its objectives. The market value of securities fluctuates and you may incur a profit or a loss. Diversification does not guarantee a profit nor protect against a loss. Dividends are not guaranteed and will fluctuate.
Material is provided for informational purposes only and does not constitute a recommendation.
Any opinions are those of the Investment Manager(s) and their team and not necessarily those of Raymond James. Opinions are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security outside of a managed account. This should not be considered forward looking, and does not guarantee the future performance of any investment.
All investments are subject to risk, including loss. There is no assurance that any investment strategy will be successful. Asset allocation and diversification does not ensure a profit or protect against a loss. It is important to review the investment objectives, risk tolerance, tax objectives and liquidity needs before choosing an investment style or manager.
This Fact Sheet is not intended to be a client-specific suitability analysis or recommendation. Do not use this as the sole basis for investment decisions. Do not select an investment strategy based on performance alone.
The individual(s) mentioned as the Investment Manager(s) are Financial Advisors with Raymond James participating in a Raymond James fee-based advisory program. This is an investment advisory program in which the client’s Financial Advisor invests the client’s assets on a discretionary basis in a range of securities. Raymond James investment advisory programs may require a minimum asset level and, depending on your specific investment objectives and financial position, may not be suitable for you.
In a fee-based account clients pay a quarterly fee, based on the level of assets in the account, for the services of a financial advisor as part of an advisory relationship. In deciding to pay a fee rather than commissions, clients should understand that the fee may be higher than a commission alternative during periods of lower trading. Advisory fees are in addition to the internal expenses charged by mutual funds and other investment company securities. To the extent that clients intend to hold these securities, the internal expenses should be included when evaluating the costs of a fee-based account. Clients should periodically re-evaluate whether the use of an asset-based fee continues to be appropriate in servicing their needs. A list of additional considerations, as well as the fee schedule, is available in the firm’s Form ADV Part 2 as well as the client agreement.
ASSET CLASS RISK CONSIDERATIONS
Equities: Investors should be willing and able to assume the risks of equity investing. The value of a client’s portfolio changes daily and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in which the strategy has invested. Companies paying dividends can reduce or cut payouts at any time.
Fixed Income: All fixed income securities are subject to market risk and interest rate risk. If fixed income securities are sold in the secondary market before maturity, an investor may experience a gain or loss depending on the level of interest rates, market conditions and the credit quality of the issuer. There is an inverse relationship between interest rate movements and bond prices. Generally, when interest rates rise, bond prices fall and when interest rates fall, bond prices generally rise. Please note these strategies may be subject to state, local, and/or alternative minimum taxes. You should discuss any tax or legal matters with the appropriate professional.
