Intermediate Duration Gov’t/Corp Fixed Income

Investment Philosophy

The Tocqueville Asset Management L.P. (“TAM”) Fixed Income team believes that portfolio yield is crucial to a successful investment management strategy. It also believes that consistent excess returns are achieved by maximizing income and reinvestment opportunities, along with active asset allocation. To this end, the team utilizes intermediate term tactical insights to generate portfolios with greater risk/return profiles than traditional asset allocation structures. The team seeks to supplement fixed income investments with a strategy that aims to provide higher current income than is available from a typical stock or bond portfolio. Over a full market cycle, the strategy is likely to underperform stocks yet post higher returns than bonds, with a relatively stable stream of income.

Investment Strategy

TAM’s Fixed Income team employs a top-down macro-economic approach to determine an intermediate term tactical asset allocation in order to manage risk and income. The team then uses a bottom-up, fundamentally driven approach to portfolio construction utilizing both traditional and non-traditional sources of income. This actively managed approach seeks to provide a higher yield and return than the Bloomberg U.S. Aggregate Index, with lower duration (sensitivity to interest rates)., the Blended Benchmark of 50% Russell 1000 / 50% Bloomberg U.S. Aggregate, and the Russell 1000 Index. The portfolio is diversified amongst Income Oriented Equities, Preferred Stocks, REITs, MLPs, Emerging Markets Debt, High Yield Bonds, Bank Loans, Investment Grade Bonds, and other income generating securities. To achieve proper diversification, the portfolio may hold mutual funds, ETFs, and other commingled products in order to represent part or all of one of the aforementioned asset classes.