“INTERMEDIATE CONTROLLED RISK”
The “Intermediate Controlled Risk” management product is a risk-averse, moderate duration strategy that seeks to maximize investment performance for conservative investors primarily through the use of U.S. Government guaranteed mortgage-backed securities, U.S. Government guaranteed fixed maturity “bullet” notes, and investment grade corporate bonds when economic and market conditions are favorable. The goal of this strategy is to provide excess returns relative to the benchmark by emphasizing preservation of principal, consistency of return, and the production of a high income yield in a manner that maintains an overall risk level similar to the benchmark.
This strategy calls for each security selected for a portfolio to have a duration between two and five years. Since its inception, this product has generally offered interest rate risk in line with the Barclays Intermediate Government / Credit and the Barclays Intermediate Aggregate indices.
The fixed income management team at WCB seeks to add value to a portfolio through multiple management tools and tactics including:
• Proprietary Credit Research
• Maximization of Corporate Bond & MBS Spreads over Treasuries
• Yield Curve Management - Volatility Analysis
• Duration Management
Each portfolio is customized and managed separately and in accordance with the investment policies and guidelines as determined by the client.