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 Product | U.S Investment Grade | Denominated Euro Bonds | Emerging Markets | U.S Gov´t & Agencies | Municipal Bonds |
|---|---|---|---|---|---|
| Investment Grade | 100% | 0% | 0% | 0% | 0% |
| International | 70% | 30% | 0% | 0% | 0% |
| Emerging Markets | 70% | 0% | 30% | 0% | 0% |
| Euro Bonds | 0% | 100% | 0% | 0% | 0% |
| U.S Gov´t & Agencies | 0% | 0% | 0% | 100% | 0% |
| State & Municipal Bonds | 0% | 0% | 0% | 0% | 100% |
Fixed Income Best Practices