TJIM’s Fixed Income strategies tactically balance total return, income generation, and capital preservation. Our firm’s conservative investment approach and a focus on maintaining liquidity at the individual account level establishes minimum quality parameters. At purchase, portfolio issues must have a category A (A3,A-,A-) or better rating by one of the major ratings agencies (Moody’s, S&P or Fitch). TJIM’s investment team conducts quantitative and qualitative analysis of yield, quality, duration, and yield curve positioning to identify the most attractive sector(s) within our fixed income universe and the most attractive securities within each sector.
TJIM’s investment team combines the individual security analysis, portfolio structure modeling, and disciplined duration management to build a liquid, diversified portfolio of individual bonds that we believe is well positioned to outperform, and equally important, is designed to address client cash flow objectives.
Prior to any purchase, sector analysts review the fundamentals of credit issuers that pass TJIM’s initial universe screening criteria to ensure adequate cash flow for bond repayment and to identify unsystematic risks that could signal a material risk to an issuer’s business. Bond issues that pass our rigorous initial analysis are recommended for portfolio models and subject to TJIM’s ongoing review process. At the portfolio level, TJIM’s investment team employs proprietary forecasting tools and scenario analysis models. This analysis identifies optimal portfolio structure and duration positioning relative to the underlying benchmark and provides a distribution of probable performance outcomes under different interest rate and economic environments.
The Fixed Income Strategy is a bond strategy that uses disciplined duration management to outperform the Barclays Government/Credit Index over a business cycle while providing disciplined risk management.
The Intermediate Fixed Income Strategy is a bond strategy where disciplined duration management is key. The strategy is to outperform the Barclays Intermediate Government/Credit Index over a business cycle while providing disciplined risk management.
The goal of the Tax Exempt Fixed Income bond strategy is to maximize tax-free income while conserving capital, with a secondary objective of obtaining satisfactory total return. Given our conservative philosophy, issues must have a category A or better rating by one of the rating agencies at purchase date. The average maturity of the portfolio will not exceed 15 years. These portfolios are very client specific in respect to state, tax status, and monthly income needs. Thus, dispersion of holdings and returns across portfolios is likely to be greater than the dispersion of our other fixed income portfolios.