AMI’s Taxable Fixed Income objective is to provide current income consistent with preservation of capital and growth of capital as a secondary objective.  It is suitable for most taxable and tax-exempt investors looking for diversification from their equity exposure as well as those desiring a high degree of current income.

 

Overview

  • Portfolios may be invested in U.S. Government and agency securities, corporate bonds, mortgages, asset backed securities, and taxable municipal bonds.
  • Our disciplined, research driven approach starts with a top-down analysis of the economy to determine which sectors are likely to perform best under our 12-18 month outlook.  We also consider the relative valuation of each sector as compared to its historical mean as well as to that of other sectors.  This provides our sector weightings and industry allocations.
  • Issue selection is determined by a bottom-up fundamental analysis of each issuer and issue using independent external sources as well as internal proprietary research.
  • Corporate bonds are examined for their ability to deleverage their balance sheets, increase interest coverage and achieve fundamental financial improvement so as to achieve ratings upgrades resulting in bond price appreciation (spread tightening).
  • Portfolios are separately managed and no derivatives, hedging or leveraged strategies are used.  Additionally, portfolios can be easily customized to meet client requests including cash flow needs, yield requirements, sector exposure and maturity limitations.

 

Click on each chart below to see a larger version.

 

 

 

 

 

 

   

 

 

 

TOP TEN HOLDINGS*
1. 

Toll Bros Fin Corp

5.625% Due 01-15-24

1.64%
2

Wells Fargo & Co.

5.875% Due 12-31-49

1.59%
3

Southern CA Edison

6.250% Due 12-31-49

1.57%
4

Sabine Pass Liquefaction, LLC

5.625% Due 03-01-25

1.56%
5

Citigroup Inc.

5.875% Due 12-29-49

1.54%
6

Lear Corp

5.375% Due 03-15-24

1.53%
7

Newfield Exploration Co.

5.625% Due 07-01-24

1.52%
8

International Lease Finance Corp.

5.875% Due 08-15-22

1.51%
9

Leucadia National Corp.

5.500% Due 10-18-23

1.51%
10

Service Corporation International

5.375% Due 1-15-22

1.50%

*As of 3-31-17. Holdings are subject to change.  The securities identified and described above do not represent all of the securities purchased, sold or recommended for client accounts. The reader should not assume that an investment in the securities identified was or will be profitable.  A complete list of all buy and sell recommendations for this strategy within the last 12 months is available upon request.  AMI Asset and/or one or more of its employee may have a position in these securities and may purchase and sell such securities from time to time.

 

PORTFOLIO CHARACTERISTICS*
  AMI

BofA U.S. Corp. & Govt. 1-10 Year

Credit Quality  A- A
Effective Maturity  4.22 Years 4.29 Years
Modified Duration  3.69 Years 3.92 Years
Yield to Maturity  3.37% 2.08%
Yield to Worst  4.27% 2.09%

*As of 3-31-17.  Source – AMI, Russell, iShares, Standard and Poors. The above information is based on a representative account and clients accounts may vary.  The portfolio characteristics information is being presented as supplemental information to the AMI Asset ManagementGovernment/Corporate Fixed Income Composite.  

 

 

 

 

 

AMI 1st Quarter 2017 Taxable Fixed Income Factsheet

 

 

 


* as of 03/31/2017