Fixed Income

Investment Approach

Taxable and tax-free accounts are managed to generate a total rate of return, including: earned interest, dividends, distributions and capital gains realized over a given period of time. Portfolios are individually constructed to meet the client’s particular investment requirements, such as maturity structure and cash flow needs.

Portfolios are actively managed, rather than positions that are bought and held to maturity. Our strategy enhances portfolio liquidity and reduces price risk in a rising interest rate environment. Conversely, portfolio maturities can be extended to capture capital gains when rates are at cyclical highs and headed lower.

Investment decisions are based on a thorough analysis of the domestic and global economic factors that determine the direction and shifts in U.S. yield curve. Economic and market conditions are continually assessed, and portfolios are adjusted when changes in rates necessitate modifying the effective maturity or duration.

The credit rating of both taxable and tax-exempt portfolios is restricted to investment grade or high grade. Credit quality is continually monitored. Derivative products are not used to enhance portfolio results.

Taxable Income

Portfolio composition includes debt issued by public and private entities and equities with debt-like properties.

Portfolios with assets of $1 million or more are invested using the Broad Market Index (BMI) as a measure of performance. Our strategy allows the manager to deviate from the structured description of the benchmark to:

  • Shorten or extend the effective average maturity or duration of the portfolio in anticipation of changes in the yield curve of the direction of interest rates.

  • Modify the specific portfolio allocations in the index to increase yield and improve liquidity.

Tax-Exempt Income

An actively managed tax-free portfolio placing emphasis on high-grade municipal debt.

Portfolios are normally invested to generate the highest current returns by including bonds at or near par, while giving full consideration to market volatility. The need for current returns may also dictate a strategy including premium or discounted bonds.

  • Portfolios are individually structured.

  • The average life or duration will be determined by the client’s investment objectives.

When executing portfolio decisions, Nollenberger McCullough transacts business in the institutional markets. This level of access provides a broader selection of competitively priced inventories, improving portfolio quality at lower execution costs.

Because accounts are individually managed, portfolio results may vary from our composite returns.