Fixed income investment strategy is formulated in both a longer-term
strategic (1-3 year) context as well as a
shorter
tactical
(6-12 month) view. The
longer-term judgments result in developing
positive, neutral or negative biases which are built into strategy.
Longer-cycle variables such as inflation, currency trends, and
international credit flows are key among the inputs to this process.
Positioning on the yield curve reflects Jamison’s strategic bias in
constructing and managing the portfolio.
- Capture the
major trends of the market by changing the duration of the
portfolio
-
Preserve
the
underlying principal to be able to compound results
consistently
- Enhance
yield and
return through sector and issue selection
Shorter-term strategy develops first from Jamison’s analysis
of where the economy is positioned on a cyclical basis and what the
implications are for changes in monetary policy by the Federal Reserve. The
purpose of this analysis is to confirm the long-term strategic position
taken and/or to determine the degree to which it may be sensible to alter
the portfolio structure.
This analysis incorporates
scenario building in which the potential price
changes of the portfolio structure are tested under different interest
rate environments. Strategy is modified based on current portfolio
positions and the
risk/reward trade-offs. Computer models assist in
optimizing portfolio characteristics. Selection of sectors and
specified issues is an important discipline to add incremental return
and to control risk.
Sector Exposure Controls Match Client Tolerances For:
- Governments
- Corporates
- Mortgages
- Asset Backed
Special Concerns For:
- Liquidity Risk
- Credit Risk
- Event Risk
- Call Risk
Fundamental and Relative Value Analysis to Seek Unusual Opportunities
The client's income tax status (i.e., marginal Federal income tax rate
and state residency) plays a major role in determining the relative
attractiveness of bonds. Interest on bonds issued by state & local
governments are excluded from Federal income tax, while Treasury issues
are exempt from state taxes.
and highly liquid government securities
The same core disciplines that drive Jamison’s other fixed income
services are applied to the management of cash. Understanding the client’s
objectives and needs is paramount to delivering portfolio management with
the appropriate quality, maturity, and liquidity mix.
