OVERVIEW & PROCESS

Investment Philosophy & Process

IRON’s fixed income investment strategies are designed for strategic allocation to the fixed income asset class on a long-term basis. Our portfolio managers use their experience and expertise in the fixed income capital markets to create strategies and build and manage diversified portfolios that match our clients’ goals and objectives, guided by these principles:

  • Eliminate conflicts of interest and provide complete transparency via a fee-only pricing model
  • Identify the soundest long-term investment opportunities in the marketplace, then construct a portfolio that enables the discerning Advisor and long-term investor to capitalize on these opportunities
  • Focus on principal preservation; and avoid adding incremental risk by “chasing” return

Risk Management

The portfolio is actively monitored using IRON’s proprietary risk management practices. Credit quality, duration, and sector diversification are closely monitored and adjusted as needed on an ongoing basis.

In addition, our disciplined investment approach incorporates a set of specific criteria for exiting securities that no longer fit the risk/reward profile that we seek.

IRON’s investment grade corporate bond portfolios

Short-Term Investment Grade Corporate Bond Portfolio

Strategy
Short-Term
Grade Corporate Bond
Minimum Investment
Investment $1,000,000
Average Position Size of Portfolio
3%

Investment Objective

The IRON Short-Term Investment Grade Corporate Bond Portfolio seeks to provide current income with relatively low price volatility from a portfolio of diversified investment grade bonds.

Investment Approach

The Portfolio invests in corporate bonds with a credit quality of BBB- or higher and maturities from 1-5 years. The typical portfolio has an average credit quality of A-/BBB+ with an average duration of approximately 3 years. While the manager seeks to limit turnover, a bond may be sold if it violates the investment grade threshold or the manager deems it to be a risk to the overall portfolio objective.

Strategy Goals

  • Current Income
  • Lower Price Volatility
  • Diversified Investment Grade Exposure

Intermediate-Term Investment Grade Corporate Bond Portfoio

Strategy
Intermediate-Term
Grade Corporate Bond
Minimum Investment
Investment $1,000,000
Average Position Size of Portfolio
3%

Investment Objective

The IRON Intermediate-Term Investment Grade Corporate Bond Portfolio seeks to provide current income from a portfolio of diversified investment grade bonds.

Investment Approach

The portfolio invests in corporate bonds with a credit quality of BBB-or higher and maturities from 1-10 years. The typical portfolio has an average credit quality of A-/BBB+ with an average duration of approximately 6 years. While the manager seeks to limit turnover, a bond may be sold if it violates the investment grade threshold or the manager deems it to be a risk to the overall portfolio objective.

Strategy Goals

  • Current Income
  • Diversified Investment Grade Exposure

PORTFOLIO CHARACTERISTICS

as of 9/30/2017

Short-Term Investment Grade Corporate Bond

Portfolio Characteristics

Weighted Avg.

Eff. Maturity

2.76

Weighted Avg.

Duration

2.52

Weighted Avg.

Coupon

3.93%

Weighted Avg.

Yield to Cost

2.44%

Weighted Avg.

Credit Quality

BBB+/BBB

Intermediate-Term Investment Grade Corporate Bond

Portfolio Characteristics

Weighted Avg.

Eff. Maturity

3.87

Weighted Avg.

Duration

3.30

Weighted Avg.

Coupon

4.78%

Weighted Avg.

Yield to Cost

3.63%

Weighted Avg.

Credit Quality

A-/BBB+

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MANAGEMENT TEAM

 - AARON IZENSTARK

AARON IZENSTARK

CO-FOUNDER, CIO
MANAGING DIRECTOR

 - TED CONNOLLY

TED CONNOLLY

DIRECTOR, PORTFOLIO MANAGEMENT AND TRADING

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