Compliments equity component to lower portfolio risk
Ranges: Intermediate maturities (2 - 8 years)
Laddered based on best risk / reward characteristics
Add value by allocating between U.S. Treasuries, agencies, municipal, & corporate bonds based upon best total return opportunities
Interest rate risk
Strict credit criteria - equity approach
Diversify among U.S. Treasuries, agencies and investment grade municipal and corporate bonds. No more than 5% of portfolio held in any one issuer.