Bonds

Fixed income holdings include government and agency securities as well as corporate and municipal bonds. While the composition of fixed income holdings may differ depending upon tax or liquidity needs, our overall approach is based on a common frame of reference. We do not view the fixed income sector as a primary vehicle for appreciation and embrace a strict risk adverse approach.

Holdings are structured and managed to provide a stream of income, reduce overall portfolio volatility and provide liquidity. To the extent the yield curve permits, we prefer a laddered maturity structure in order to avoid disruptive changes in the flow of income and reinvestment risk associated with an uneven pattern of maturities. With few exceptions, investments are largely within a ten-year maturity range in order to provide call protection and avoid the volatility inherent with longer maturities.