Advisor Flipbooks

6 Individual Bond Strategies Term Maturity strategies. Term Maturity strategies are designed for investors who seek to preserve capital while also helping to produce predictable income. For illustrative purposes only. Not meant to represent any actual investment. Initial funding Reinvestment Six-month term maturity Jan Jul Jan Jul Jan The portfolio invests in ultra-short-term fixed-income securities similar to a cash strategy, while also seeking to generate predictable income. The strategies offer investors a defined time frame within which their portfolio will mature (for example, six months) and will reinvest into new holdings with the same beginning term to maturity (in this example, six months). The portfolios have no end date; they continue to reinvest their principal once the underlying holdings mature. Investing in ultra-short-term securities keeps the portfolio's duration (interest-rate sensitivity) low, seeking to support the goal of capital preservation through low overall volatility, while also helping to produce predictable income at current market rates. To illustrate, a U.S. Treasury bond six-month Term Maturity strategy will invest in six-month Treasury bills. When these mature, the positions are rolled over into new six-month Treasury bills. Similarly, the other strategies will invest in securities that correspond to their named maturities; the three-month strategies invest in securities that mature in three months, the nine-month strategies invest in securities that mature in nine months, and the 12-month strategies invest in securities that mature in 12 months. Exhibit 4: Term Maturity bond strategy

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