CLIENT ACCESS

Fixed-Income Investments

ZWJ Investment Counsel manages high-quality, intermediate-maturity government, corporate and municipal fixed-income securities. Average maturity and duration are extended in anticipation of lower rates and shortened in anticipation of higher rates. To determine the long-term direction of interest rates, we use a three-step process:

1. Analyze

Analyze interest rates, yield curves and spreads.

Interest Rate Analysis

Changes in the long-term direction of interest rates are projected based on numerous macroeconomic variables, such as:

• Labor costs
• Commodity prices
• Money supply
• Consumer spending

Yield Curve Analysis

We project the implications, over time, of changes in the long-term direction of interest rates and the shape of the yield curve:

• Shifts in the yield curve
• Changes in the shape of the yield curve

Spread Analysis

Yield differentials are examined among:

• Corporate and government securities for tax-free accounts
• Municipal and government securities for taxable accounts
• Securities from different industry sectors
• Securities with different credit ratings

2. Construct

We construct a fixed-income portfolio that positions a client’s portfolio to benefit from our view of changes in interest rates, the shape and level of the yield curve and attractive spread differentials. An “AA” average quality is maintained. The average maturity will range between five and fifteen years. Only investment grade bonds are purchased.

3. Monitor

A client’s portfolio is continually monitored by the portfolio manager. Bond maturities and durations are extended in anticipation of lower rates and shortened in anticipation of higher rates.