Carret’s Taxable Fixed Income Strategy seeks to prioritize total return and current income while emphasizing preservation of principal. We utilize intermediate duration investment grade bonds and shift across bond sectors based on changing market conditions. Our custom-active strategy offers advantages versus a passive "buy and hold" or "ladder" approach. We create and manage an efficient risk/return portfolio comprising a diversified blend of Corporate Bonds, U.S. Treasury Bonds, U.S. Government Agency Bonds, Preferreds, MBS, ABS, and Taxable Municipals. We employ a high-level macro view with a bottom-up credit research process. Final security selection focuses on the business fundamentals of each company – including cash flow and earnings expectations, debt/equity targets, dividend and share repurchase policies, and industry growth prospects.

Investment Philosophy

  • Total return orientation focusing on preservation of principal, liquidity and income
  • Identify the sweet spot on the yield curve and structure maturities accordingly
  • Active management includes forecasting the long term direction of interest rates and credit spreads
  • The strategy considers relative market values, yield, credit quality, maturity, interest rates, and credit spreads
  • Anticipate change and capitalize on it

Investment Process

  • Team approach
  • Custom tailored
  • Actively managed with a total return focus
  • Analyze yield curve to identify optimal maturities
  • Diversified by sector, industry, and company
  • Monitor and maintain investment grade quality
  • Corporate credit research identifies spread tightening opportunities