Deciding on Asset Allocation

For every investment plan, we establish a set of principles for our money managers to follow in order to attain the plan’s investment objectives. The first step is asset allocation—we decide how to divide the portfolio. We determine an allocation percentage for different asset classes (bonds, cash equivalents, and international securities) and then diversify within the asset classes by buying different holdings in each asset class.

Fixed Income ProductU.S Investment GradeDenominated Euro BondsEmerging MarketsU.S Gov´t & AgenciesMunicipal Bonds
Investment Grade100%0%0%0%0%
Emerging Markets70%0%30%0%0%
Euro Bonds0%100%0%0%0%
U.S Gov´t & Agencies0%0%0%100%0%
State & Municipal Bonds0%0%0%0%100%

Fixed Income Best Practices