Investment Strategies - Balanced

Philosophy

Montag & Caldwell’s Balanced philosophy combines the disciplines of the Firm’s large cap equity and fixed income strategies.  The equity and fixed income strategies are managed identically to their respective strategies in equity-only and fixed income-only accounts.  The Investment Policy Group targets a 60% equity-40% fixed income allocation.

The equity portion of the portfolio is the driving force behind performance, while the fixed income portion is the anchor to windward that mitigates portfolio risk.  Emphasis is placed upon positioning along the yield curve and sector weightings.  In separately managed accounts, investment policy restrictions are easily accommodated.

Minimal shifts around the client’s strategic target asset allocation are made based upon the Investment Policy Group's (IPG's) outlook for the equity and fixed income markets.  Among the factors considered are the economic environment, financial market valuation, economic and investor liquidity, and investor sentiment.  Both short and long-term outlooks are evaluated.