IRPM is a low duration portfolio strategy useful where the
volatility of market or higher duration Indexes is inappropriate or the time horizon for use
of the funds is shorter or less predictable than a pension fund. The portfolio is benchmarked versus
the Merrill Lynch Corporate & Govt. 1-3 Years Index.
We believe that active management can enhance the return of a conservative
short-term bond portfolio through traditional bond management methods applied within a specific
duration range selected to achieve a favorable combination of return and controlled volatility.
Do:
Target a duration range of 1.5 to 3, averaging 2.0.
Vary the credit risk exposure of the portfolio relative to the Target Index.
"Roll down / Roll out" to capitalize on yield curve math.
Fine tune the portfolio holdings for incremental return.
Do Not:
Replicate the cross-section of the Target Index.
Allow bonds to mature when the yield curve is "normal".
AAA quality on average, transparent and liquid portfolios, monthly cash-flow option
This information is a summary of our general approach to investing. It is not to be taken literally as rules to be followed in all circumstances. Conditions and markets change which requires judgment in the application of guidelines.