Fixed Income Solution
Seeks to provide attractive current income primarily through investments in fixed income securities. The portfolio’s 2-3 year investment horizon typically results in a significant percentage of portfolio assets allocated to relatively lower risk fixed income investments, enhanced by allocations to higher risk fixed income assets with higher yields and some long-term return potential. The specific mix between lower risk and higher risk fixed income assets is determined through RiverFront’s Price Matters® framework, which allocates more to higher volatility assets when yields are relatively high and reduces these allocations when yields are less attractive to us on a long-term basis.
Tactical strategies typically seek to add value by shifting the portfolio among fixed income asset classes based upon the shorter term momentum in their economic fundamentals, market conditions and technical pricing movements. The relatively short 2-3 year time horizon of this portfolio, however, dictates that short-term, defensive measures may need to be emphasized in order to protect portfolio values.