CORE EQUITY BALANCED ACCOUNTS
Fundamental research driven
Corporate bond focus
Emphasis on income generation
In-house bond ratings
Focused on absolute & relative value
Long-term time horizon
Shifts between corporate, governments, etc., occur deliberately
When changes are made, we are attempting to capture value changes among these sectors
Buy Discipline
Relative value analysis, credit quality/security analysis, maturity/duration, industry/sector diversification
Sell Discipline
Deterioration in credit quality, sector no longer exhibits relative value, maturity/duration do not match current interest rate outlook, portfolio structure does not match our interest rate outlook
Diversification Risk
Issuer: 5% of market value
Issue: 5% of par value
Industry: 25% of market value
Excludes treasuries & agencies