Fixed Income Management

Recognizing the needs of its clients, The Swarthmore Group introduced its fixed income investment management capabilities in early 2000. These capabilities were enhanced in July 2003 through the acquisition of a fixed income portfolio management team that started working together in 1979. Building upon the work of the Investment Policy Committee, fixed income portfolio managers assess relative value across major market sectors in order to establish individual sector weightings. Within each of the sectors, value is identified among securities by evaluating spread, security characteristics, credit quality and liquidity. The result is a portfolio of securities designed to limit volatility yet have the greatest impact on performance. Well-defined ranges of duration, sector diversification, yield curve distribution, and quality standards insure that portfolio risk can be controlled. To ensure that the process remains dynamic within any interest rate environment, a trading discipline is maintained that allows for a constant evaluation of changing security value.

Product Benchmarks

• Domestic Core product benchmarked to Lehman Aggregate

• Index/Intermediate product benchmarked to Lehman Intermediate Government/Credit Index

• Short Duration product benchmarked to Lehman 1-3 Year Index

• Treasury Inflation Protected Securities benchmarked to Lehman US TIPS Index

• Approximately $781.7 million in assets under management

• 15 institutional clients