Fixed Income Management
Fixed income exposure provides liquidity, capital preservation, and a predictable source of income while lowering overall portfolio volatility.
Income needs – Meeting or exceeding income and liquidity requirements while providing competitive returns
Time Horizons – Maintaining flexibility to meet changing needs
Tax Considerations – Monitoring marginal tax rates to benefit from taxable (vs tax-exempt) income
Risk Tolerance – Diversifying across market sectors
Fixed Income Investment Philosophy
Duration Neutral – Because accurately forecasting interest rates is extremely difficult to accomplish on a consistent basis, our goal is to produce a relatively duration-neutral portfolio (typically within 75-125% of the benchmark duration).
Value – Provided through sector allocation, security selection and efficient execution of trades.
Quality – The portfolio invests in debt obligations rated investment grade at the time of purchase by at least one major rating agency or are determined to have investment grade risk characteristics by the portfolio managers.
Fixed Income Strategies
TCV Taxable Bond Portfolio
Provides exposure to high-quality investment grade bonds where the primary objective is to generate a competitive level of income while reducing portfolio volatility. A short to intermediate term average duration is maintained through the purchase of securities including corporate, U.S. government agency, U.S. treasury and taxable municipal bonds.
TCV Municipal Bond Portfolio
A strategy which invests in high-quality municipal bonds with short to intermediate maturities that provide state and/or federal tax-exempt income. Risk is controlled through diversification across market sectors and can be tailored to state-specific needs.
TCV Core Bond Portfolio
A portfolio comprised of high-quality broad based fixed income Exchange Traded Funds (ETFs) which includes exposure to U.S. Treasury, U.S. Government Agency, Corporate, Mortgage- Backed and International Sovereign debt. Focus remains on short to intermediate term ETFs.