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: 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.