Fixed Income

Although our equity portfolios tend to be relatively conservative and generate significant levels of current income, client circumstances often warrant the construction of a “balanced” portfolio, i.e., one that has an allocation to fixed income securities as well as to equities. Verity & Verity meets this need for balance through the development of fixed income portfolio allocations that support and complement the income-producing equity strategies developed for each individual client.

Philosophically, we look to a client’s equity allocation for income and growth, and therefore we tend to see a client’s fixed income allocation in a more conservative mode, i.e., capital preservation and income. Consequently, we strive to preserve market values through the selection of short to intermediate term fixed income positions that do not have high exposure to changing interest rates. Depending on each client’s tax situation, we generally construct five to seven year fixed income “ladders”, utilizing corporate and/or tax exempt securities.