STOCKS & BONDS
FIXED INCOME FUND
Fund Overview
Fund Goal
To maximize after-tax return from a portfolio of taxable and/or tax-exempt bonds.
Who Can Invest
Any family member through Sedgwick Street Fund, LLC.
Who Might Want to Invest
An investor who:
- Wants steady income
- Wants to protect principal to the extent possible; and
- Is not looking for capital appreciation.
Strategy and Fund Description
The Fixed Income Fund was created on January 1, 2008 as a result of merging Sedgwick’s Municipal Bond and Adjustable Rate Bond Funds. The Fund invests almost exclusively in tax-exempt bonds with an average maturity of 5 years.
A strategy was introduced in 2012 to increase the cash yield and shorten the average maturity/duration of the portfolio to make the Bond Fund less vulnerable to interest rate increases. The Fund currently invests in:
- 10% Blackrock Strategic Income Opportunities Instl (BSIIX) – A flexible bond strategy that seeks to offer investors attractive income, returns, and a meaningful portfolio diversification as a compliment to a core bond position.
- 90% Income, Research & Management – monitors all investment grade fixed income securities on an after-tax yield basis for opportunities to improve the portfolio’s overall tax efficiency and after-tax return.