The SGL Strategic Income portfolio model is designed for the investor in search of current income and/or preservation of principal. The SGL Strategic Income portfolio primarily focuses is on taxable-income-generating debt instruments that the advisor believes may offer income or appreciation potential above that of the market and/or benchmark. This portfolio is actively managed for total return; bonds that have appreciated significantly and so therefore might no longer offer relative value going forward may be sold in the interest of more effectively deploying that capital. The primary focus of the Strategic Income portfolio is on U.S.-dollar denominated debt instruments.
In an SGL Strategic Income portfolio, under normal circumstances SGL Investment Advisors prefers to generate alpha via assuming a calculated amount of credit risk before taking undue interest rate risk. As such, the primary emphasis is on short-term to midterm maturities. The Strategic Income portfolio can include corporate bonds and notes, municipal bonds, certificates of deposits, government or government agency bonds, mortgage-backed securities, exchange-traded funds (in which the underlying securities are fixed income instruments), as well as other fixed income debt instruments. The percentage portion of the Strategic Income portfolio devoted to each constituent asset class will be primarily determined by what the advisor believes represent market opportunities.