Extraordinary volatility or risk have characterized the fixed income markets since the 1970’s. Management of this risk is the cornerstone of our fixed income investment approach. Fixed Income portfolios and the fixed income portion of our balanced accounts are managed based on economic analysis, interest rates spreads and anticipated changes in the direction of interest rates. Both government and investment grade corporate bonds are utilized. Municipal bonds may be included in taxable accounts when appropriate. Securities may include U.S. Treasuries, Government Agencies and investment-grade corporate bonds on a relative value basis. Current market and quality yield spreads, as well as credit ratings, liquidity and call features, are considered where appropriate. We believe that structuring portfolios with securities to set up an intermediate maturity schedule offers the best long-term risk/reward payoff.