Taxable Strategy

Overview

Haverford’s taxable fixed-income portfolio mixes high-quality intermediate corporate, agency, mortgage and Treasury instruments with the goal of delivering attractive risk-adjusted returns across the market cycle. Our Quality Investing  approach is based on analysis of individual securities to evaluate their specific risks today and in the future.

Investment Philosophy

  • We actively manage portfolios, rotating into the market’s most favorable opportunities from the portfolio’s most fully valued holdings.
  • We emphasize intermediate maturing holdings and de-emphasize market timing in an effort to control risk.

Investment Strategy

  • Our team analyzes individual securities to evaluate inherent risk characteristics, such as call risk or indenture provisions.
  • Our analysis incorporates forward-looking assessment of the risks involved.
  • We continually evaluate if those risks are adequately compensated by the market yield.
  • This strategy may also be applied via Exchange Traded Funds to maximize account efficiencies.

Intermediate Government/Credit

Portfolio Characteristics*

HaverfordBBIGC
Yield to Worst2.41%2.11%
Coupon2.74%2.44%
Current Yield2.68%2.42%
QualityAAA
Maturity4.444.39
Effective Duration3.874.05

Quality Distribution*

HaverfordBBIGC
AAA10.563.3
AA11.76.3
A48.913.5
BBB28.916.9

Sector Allocation*

HaverfordBBIGC
Treasury9.0%56.2%
Agency0.76.3
MBS-Passthroughs0.10.0
MBS - Structured Products0.00.0
ABS0.00.0
CMO0.00.0
CMBS0.00.0
Corporates88.732.8
      Industrial57.518.7
      Utilities0.81.7
      Financial30.412.4
Other1.54.7

Notes:
“BBIGC” refers to the Bloomberg Barclays Intermediate Government/Credit Index. The Bloomberg Barclays Intermediate Government/Credit Index, illustrated for comparative purposes only, includes only securities in the intermediate maturity range of the Government/ Credit Index (e.g. must have a maturity from 1 up to, but not including, 10 years. The Government/Credit Index includes Treasuries, Agencies, and publicly issued corporate debentures. It is not possible to invest directly in an index.
*Based on recommended portfolio weights. Portfolio Characteristics, Sector Allocation and Quality Distribution are subject to change at any time based on market or other conditions.

Disclosure:
All Data as of December 31, 2016. The information presented should not be construed as investment advice or recommendations with respect to specific securities presented and may not represent the holdings or weighting of any particular portfolio.