| Fixed Income
For fixed income investments, portfolios are diversified with investment grade bonds determined in part by tax parameters. To minimize risk, long-term maturities are avoided. By focusing on investment grade bonds with short to intermediate maturities, investors are better served from a safety and income perspective. In managing a fixed income portfolio or that portion of a balanced portfolio, Eagle Harbor's fixed income objective is to maximize after tax income and total returns by identifying favorable sectors and optimal areas of the yield curve. The focus is on intermediate maturities with a credit quality of "A" or better to minimize risk.
Eagle Harbor's investment philosophy and strategy is to provide high current income, principal protection, and portfolio diversification. Fixed income investments are diversified with government, agency, corporate, and municipal bonds proportionate to the unique taxable circumstances for each account. Durations are adjusted proactively in anticipation of interest rate changes between short and intermediate length maturities. Investment opportunities are identified in sectors that deviate from historical norms. The yield curve is analyzed to optimize the risk and return trade-off; and the credit quality is improved when possible to take advantage of instances of mispricing or an overreaction to a trend or event. |
