Fixed Income Investment Process

Investment Process

3 Step Process

Maturity Assessment

Determines why we should be increasing or decreasing our average duration

Credit Risk Assessment

Helps us determine credit quality of the portfolio

Security Selection

This determines what specific securities we should own

Maturity Assessment

Duration

The first model forecasts the trend of intermediate-term interest rates. If the model indicates that interest rates will be increasing, we will reduce the average maturity of the treasury allocation of the portfolio. Conversely, if the model forecasts that interest rates will be declining, we will lengthen the average maturity of the treasury allocation of the portfolio.

Credit Risk Assessment

Credit Quality

Once we reach a decision on the average maturity, the second model determines the credit quality of the portfolio. This model guides us in determining our exposure to treasury, high-grade corporate, high-yield and emerging market fixed income securities.

Security Selection

Meeder Security Selection Process

Our fixed income security selection process utilizes a multi-factor quantitative model with a qualitative overlay to find securities that have outperformed their respective peers over various market cycles. This process is designed to select securities that complement one another and assist the portfolio in achieving its duration, quality, and sector allocation goals.