Investment Management Solutions

KAR Fixed Income Strategies

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For clients seeking fixed income portfolio management, we offer actively-managed tax-exempt and taxable individual bond portfolios designed to meet your specific investment needs.

Managed by our in-house fixed-income team, our bond strategies are designed to achieve income and performance objectives by maintaining a commitment to:

Investment-grade credit rating

Intermediate maturity

High liquidity

Economic sector diversification

Ready to talk to our wealth management team about the right fixed income portfolio for you? Contact us today.

Fixed Income Philosophy

Our fixed income approach is grounded in active management, rigorous credit analysis, and careful portfolio construction.

* FTSE 3-Month T-Bill
** FTSE 5-Year Treasury Benchmark
*** FTSE 30-Year Treasury Benchmark

 

Data is obtained from FactSet Research Systems and is assumed to be reliable.
Returns may be affected by currency fluctuations. Past performance is no guarantee of future results. 

Fixed Income Investment Process

The chart above is for illustrative purposes only and is not intended by KAR to be interpreted as investment advice, a recommendation or solicitation to purchase securities, or a recommendation of a particular course of action . There is no guarantee that the portfolio will meet its objective.

Strategic Inputs

Trends in US and global economies

Direction of monetary and fiscal policy

Term structure of interest rates

Pricing of credit risk

Inflation expectation

Growth expectation

Sector outlook

Security Selection & Portfolio Construction

Develop duration and yield curve positioning strategies

Determine sector weightings and duration for sector based on sector outlook

Select individual issues:
– High quality-investment grade only
– Intermediate duration
– Highly liquid
– 25-40 securities

Security structure to enhance yield and lower volatility

Sell Discipline

Portfolio or sector duration adjustment

Overvalued security

Negative sector development

Negative security development

Municipal Bond Strategies

High-quality, intermediate-term portfolios that provide investors with current income exempt from state and federal income taxes, and seeks to preserve principal, produce low volatility, and provide a total return above the market index over a full economic cycle.

  • Asset Class: Intermediate Municipal
  • Primary Index: Bloomberg Capital 5-Year Municipal Bond Index
  • Portfolio Manager: Kimberly C. Friedricks

Download PDF files: High Quality Intermediate Municipal Bond Portfolio

Intermediate Total Return Strategy

A high-quality, intermediate-term maturity portfolio that preserves principal and seeks to provide a total return above the market index over a full economic cycle.

  • Asset Class: Total Return Fixed Income
  • Primary Index: Bloomberg U.S. Intermediate Government/Credit Bond Index
  • Portfolio Manager: Kimberly C. Friedricks

Download PDF files: Intermediate Total Return Portfolio