Fixed Income Strategy

Bradley, Foster & Sargent manages approximately $602 million, as of September 30, 2018, in fixed income instruments and cash reserves for individual and institutional clients with a variety of fixed income objectives. Client objectives range from core fixed income management and maximizing current income for individual clients to conservative total return for institutional clients. We apply a common investment philosophy and process in fixed income portfolio construction, which actively employs government, agency, corporate and municipal bonds.

Our investment philosophy for fixed income management stresses capital preservation through an approach that emphasizes high quality securities from a diversified portfolio of bonds and a conservative risk management approach. We actively manage portfolio duration against market expectations and each client’s benchmarks and tolerance for risk.

Fixed income portfolios are customized to help achieve each client’s objectives through a common process of security selection and portfolio construction. We supplement the credit rating agencies’ assessment of credit risk through our own balance sheet analysis with the goal of minimizing potential negative credit surprises. Individual issuers are approved by our Investment Committee and credits are regularly monitored and reviewed for on-going appropriateness. Security selection results in transparent, understandable portfolios that are diversified by sector, security and structure.

We focus on maximizing after-tax returns for taxable clients by exploiting the differences in yields available from the different sectors of the fixed income markets. We actively manage portfolios to enhance yield and return through various portfolio strategies and structures. For clients whose investment objective is to maximize income, we may employ Master Limited Partnerships, Real Estate Investment Trusts, preferred stocks, and other higher yielding equities and high yield mutual funds to help meet a client’s income targets (see High Income Strategy).