Fixed Income

Fixed Income Portfolio

Investment-grade fixed income for portfolio stability and consistent cash flow.

Capital Preservation with Stable Income

Pendleton's fixed income platform emphasizes downside protection, consistent income, and disciplined duration management. We allocate across government, corporate, and municipal instruments, plus selected CDs and ETFs, to deliver portfolio stability while remaining opportunistic when spreads widen.

Investment-grade bias with active credit monitoring
Duration laddering to manage rate volatility
Tax-efficient municipal allocations where appropriate
Liquidity management across short and intermediate tenors
Integrated risk controls aligned with portfolio objectives
Real Estate — 55%
Equities — 20%
Fixed Income — 15%
Private Credit — 10%

Government Bonds

Issued by national governments, government bonds are considered among the lowest-risk fixed income instruments available. Pendleton's government bond holdings include U.S. Treasuries and other sovereign debt, providing a stable foundation for portfolio income and capital preservation. These instruments serve as a core defensive allocation during periods of market volatility.

U.S. Treasury Bills, Notes, and Bonds across maturities
UK Gilts and other sovereign debt exposure
Government agency securities (GNMA, FNMA)
Treasury Inflation-Protected Securities (TIPS)
Considered low-risk with full government backing

Corporate Bonds

Corporate bonds are debt instruments issued by companies seeking to raise capital. They typically offer higher yields than government bonds in exchange for taking on additional credit risk. Pendleton focuses on investment-grade corporate issuers with strong balance sheets, proven cash flow generation, and favorable industry positioning to balance yield enhancement with prudent risk management.

Investment-grade corporate debt (BBB- and above)
Diversified across industries and sectors
Higher yields compared to government securities
Rigorous credit analysis and ongoing monitoring
Senior secured and unsecured bond positions

Municipal Bonds

Municipal bonds are issued by state and local governments, often providing interest income that is exempt from federal taxes and, in many cases, state and local taxes as well. Pendleton strategically allocates to municipal bonds to enhance after-tax returns for investors, focusing on general obligation and revenue bonds from municipalities with strong fiscal profiles and essential-service backing.

General obligation bonds backed by taxing authority
Revenue bonds from essential-service projects
Tax-exempt interest income advantages
Strong credit quality from rated municipalities
Infrastructure and public works financing

Certificates of Deposit (CDs)

Certificates of Deposit are bank-issued, FDIC-insured time deposits that offer a fixed interest rate over a specified term. CDs provide one of the safest fixed income options available, with principal protection up to FDIC insurance limits. Pendleton utilizes CD laddering strategies to maintain liquidity while capturing competitive yields across various maturities and banking institutions.

FDIC-insured deposits with guaranteed principal
Fixed terms ranging from 3 months to 5 years
Competitive fixed interest rates locked at purchase
CD laddering strategy for liquidity management
Diversified across multiple banking institutions

Fixed Income Funds / ETFs

Fixed Income Funds and Exchange-Traded Funds provide managed portfolio exposure to diversified baskets of bonds and other debt instruments. These vehicles offer professional management, broad diversification, and daily liquidity. Pendleton selects funds with strong track records, low expense ratios, and strategies that complement our direct bond holdings to optimize overall portfolio risk-adjusted returns.

Professionally managed bond portfolios
Broad diversification across hundreds of issuers
Daily liquidity through exchange trading
Low expense ratios for cost-efficient exposure
Strategies spanning aggregate, high-yield, and specialty sectors
Fixed Income Metrics

Fixed Income Portfolio Highlights

15%

Portfolio Allocation

Fixed income portion of total assets under management

A-

Avg Rating

Average credit rating across holdings

4.1%

Yield

Portfolio yield to maturity

$180M

Total Value

Fixed income portfolio market value