The WIC Fixed Income Strategy is designed for clients whose first priority is preservation of capital and who prefer reduced equity exposure. It is designed to provide a reliable income stream and reduced volatility, while capitalizing on corporate bond yields and minimizing realized losses.
The Strategy primarily invests in investment-grade securities and diversifies across issuers and intermediate maturity dates to reduce the risk of unpredictable changes in the yield curve and company specific challenges. Generally, we hold each bond to maturity in order to realize the full yield.
We pay particular attention to the duration of our Fixed Income Strategy. The Strategy’s duration is generally lower than the Barclays Capital Aggregate Index, meaning the Strategy tends to experience less volatility as interest rates change. While maintaining a below average duration is a primary objective, we also aim to have a higher yield than the Barclays Capital Aggregate Index.
We employ our Fixed Income Strategy for clients with the following needs:
- Basic diversification
- Preservation of capital
- Short-term capital needs
- Defined longer-term capital needs
- Portfolio ballast during market volatility
- Returns slightly higher than inflation, with low volatility