Income Investment Strategy
Sachs Investment Group's general objective for fixed income accounts is to produce the highest level of income that is consistent with safety of principal. Because long-term investors are not paid to minimize risks with income instruments, we focus on buying quality.
Our income investment strategy includes:
- A focus on investment grade quality to reduce risk and preserve capital
- Evaluation of risk versus yield reward
- Duration and forecast for interest rate environment
- Active management to reduce volatility and maintain income levels
Income investments include BBB+ rated or better corporate bonds, U.S. Treasuries and, if appropriate, foreign government bonds. Preferred stocks, convertible bonds and dividend producing income stocks provide a competitive level of income and a hedge against inflation with potential for an increasing income stream.