BONDS

Bond holdings focus on the management of maturity structure to control risk, assure conformity with client objectives, and position the portfolio for the interest rate cycle. Normally, the maturity structure is spread over a number of years, "laddered", so that cash flows to the portfolio are optimally distributed. Short-term trading is avoided.

Bonds purchased must have a quality rating of A- or better by Standard & Poor's or an equivalent rating by another recognized rating agency. Convertible bonds must satisfy either our bond or stock quality criteria.