Fixed Income Strategy

Fixed Income Strategy

Overview: Matrix Fixed Income portfolios are tailored to individual client needs through the purchase of either taxable or municipal bonds. Municipal bond portfolios can be constructed on a state specific or national basis.

Investment Objective: Create a portfolio of high quality bonds that generates a predictable stream of taxable or tax-exempt income.

Portfolio Construction: Taxable portfolios are created using a diversified combination of U.S. Treasuries, U.S. Government Agencies and high quality corporate bonds. Tax-exempt portfolios are constructed using a diversified combination of high quality general obligation and essential service revenue bonds.

Maturity Ladder: Depending on market conditions, Matrix constructs laddered portfolios where approximately 80% of the bonds have maturities between 1 and 10 years with the balance between 11 and 15 year maturities. The resulting portfolio is short-to-intermediate in duration.

Bond Maturity Features: Portfolios are constructed using both callable and bullet instruments. Unless specifically requested by the client, maturities will not be over 15 years in length.

Quality: Fixed income instruments held in the portfolio must have an A or better credit rating by at least one of the investment rating agencies.

Risk Management: Individual issues are monitored for investment downgrades and price movements. Securities are sold once they have met the portfolio’s investment objectives, have matured or have been downgraded.

Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities and is not investment advice. All investments involve risk. Past performance is not an indication of future return.  Investment Advisory Services offered through Matrix Asset Advisors, Inc. a Registered Investment Adviser with the U.S. Securities & Exchange Commission. Registration does not imply a certain level of skill or training.