BTR's approach to fixed income is both basic and conservative. We are monetarists and, as such, carefully watch the tone and actions of the Federal Reserve Board, as well as government financing needs, economic strength, and other factors affecting the supply and demand for credit.

We believe that there are only a few important decision points each year with regard to the direction of interest rates and the shape of the quality and yield curves. Therefore, we choose not to actively trade fixed income holdings. Rather, we strive to position portfolios to take advantage of expected trends and any temporary distortions which may exist.

Fixed income selections may include corporate bonds and notes, government agency obligations, municipals, and U.S. Treasury Securities, depending on client risk tolerance, existing yield spreads, and the relative attraction of after-tax returns.

We emphasize quality, liquidity, and short to medium term maturities — most holdings are less than ten years.