Intermediate Taxable Fixed Income Strategy

Strategy Objectives

Wasmer, Schroeder & Company, Inc. (WSC) Intermediate Taxable Fixed Income (ITTX) strategy is managed primarily for high current income and capital preservation. Growth of principal is a secondary objective. The primary benchmark is the Barclays Capital Intermediate US Government/Credit Index and the secondary benchmark is the Barclays Capital US Aggregate Bond Index. The Strategy utilizes a mix of investment-grade corporate bonds, taxable municipal bonds and government agency debt to establish a core portfolio. Portfolios may also maintain a strategic allocation of government agency guaranteed mortgage-backed securities, depending on market conditions, portfolio size and client preference. Credit quality is high with a majority of the portfolio invested in "AA" and "A" rated securities. Our process combines a top-down review of the yield and credit curves as well as each sector's relative value, with a bottom-up approach for monitoring credits and constructing portfolios. "BBB" rated issuers are limited to a maximum of 10% of the portfolio. Duration ranges from 3 to 5 years with adjustments based on factors such as our interest rate outlook, yield curve dynamics, supply fundamentals and credit trends. Account structure is fully customizable depending on the client's needs.

Composite Statistics

(As of 12/31/2011)

*Barclays Capital Intermediate US Govt/Credit Bond Index

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