FIXED INCOME STRATEGY

The fixed income investment strategy utilized by Brick Wealth Management is designed to achieve a positive real rate of return and provide current income. Fixed income securities may stand alone or may be employed in conjunction with equities as part of an overall asset allocation strategy.

Brick Wealth Management’s portfolio construction process begins with an assessment of global economic forces, monetary policy and inflation expectations. Our professionals utilize fundamental economic and market analyses to identify sectors meeting our investment criteria. Maturity and duration weightings are determined relative to overall portfolio interest rate exposure.

Our fixed income style is characterized by high quality instruments. Credit risk is mitigated through the use of investment grade vehicles such as corporate obligations, U.S. treasury and agency paper and municipal bonds (when appropriate). Investment grade preferred stocks and trust preferreds are used to enhance yield and have different characteristics than bonds in that they tend to be more sensitive to credit risk and the health of the economy. Strategies include using a laddered bond structure utilizing short, medium and long term bonds. This approach helps reduce interest rate volatility. For clients looking to minimize the impact of taxes, high quality municipal bonds are utilized.

At times, zero coupon bonds may be used to more aggressively take advantage of a declining interest rate environment. Zeros may also be used to lock in reinvestment rates and to extend the duration of a portfolio.