Fixed Income Investment Management
Based on Process and Discipline Behind the Process
Fixed Income Investment Strategies    
    
PDR Advisors understands that in the world of customized fixed income solutions, it is imperative not to offer a “black box” solution to any client.  With our focus on customizing a fixed income portfolio designed to address all clients’ needs, expectations, regulatory and statutory requirements, classifying a portfolio by a specific style or discipline may not offer any advantages to our clients.  That being said, it is appropriate to define certain fixed income categories with which PDR Advisors has a high level of expertise.

Enhanced Cash Strategy--- typically defined as a portfolio whose average maturity or average duration is under one year.  This strategy is available for accounts with a preference for either tax advantaged income or fully taxable income and total return.  The tax advantaged focus is directed at both the federal and state effective tax rates applicable to interest income. PDR Advisors offers expertise in managing overnight investment mandates as well as investment mandates requiring average maturities as short as 30 to 90 days.

Limited Duration Strategy---  typically defined as a portfolio whose average maturity or average duration is between one and three years.  This strategy is also available for accounts with a preference for either tax advantaged income or fully taxable income and total return.  As is the case with an enhanced cash strategy portfolio, the tax advantaged focus is directed at both the federal and state effective tax rates applicable to interest income. PDR Advisors offers expertise in managing portfolios that may use a one to three year or a one to five year index as a relative benchmark.

Intermediate to Long Strategy--- typically defined as a portfolio whose average maturity or duration is greater than three years.  This strategy is available for accounts with a preference for either tax advantaged income or fully taxable income and total return.  As is the case with both the  enhanced cash and limited duration strategies, the tax advantaged focus is directed at both the federal and state effective tax rates applicable to interest income. PDR Advisors offers expertise in managing portfolios that may use a one to ten year or a Lehman Aggregate as a relative benchmark.  Insurance companies may typically have their portfolios managed with this strategy, utilizing tax exempt municipals, trust preferreds and DRD-eligible preferreds if permitted under the investment policy.

High Yield Strategy--- typically defined as a portfolio able to invest in individual bonds rated below the investment grade rating scale. Hybrid fixed income securities such as Exchange Traded Products (ETFs and ETNs as examples) and Master Limited Partnerships (MLPs) may also be utilized in this strategy. This strategy is directed at accounts whose focus is on current taxable income. For accounts subject to a high federal effective tax rate, tax-advantaged municipal bonds will be utilized.

High Dividend Strategy--- typically defined as a portfolio benefiting from the advantageous tax treatment offered on qualified dividends. This strategy is used as a compliment to a tax advantaged strategy for accounts subject to high effective federal tax rates.