Fixed Income Investment Process

1. Macroeconomic Outlook

Analyze GDP growth, inflation, employment, commodity prices and other economic data to forecast changes in interest rates. Determine maturity range and duration based upon our domestic and global economic outlook.

2. Portfolio Construction

Construct a laddered portfolio to meet client requirements for income and tooptimize after-tax returns.

3. Bond Selection

Purchase Treasury bonds, government agency securities and municipal bonds rated “A” or better for taxable clients. In addition, for tax-exempt accounts, invest in high-quality corporate bonds – rated “AA” or better – with good liquidity.

4. Ongoing Review

Monitor economic conditions and reassess maturity range, as warranted. Seek to ensure that selected bonds continue to meet key income, liquidity and quality criteria.