The Short Term Fixed Income strategy seeks to provide current income and competitive total return. The strategy is available in separate accounts and CITs.
Strategy Description
Putting cash to work in a rising-rate environment.
Segall Bryant & Hamill’s (SBH) suite of short term strategies may provide a sound option for investors with a focus on risk management. These strategies represent highly customized solutions designed to enhance the cash portion of a diversified portfolio by seeking to provide higher yields than traditional money market alternatives while helping to protect against interest rate risk. SBH offers solutions through the Short Term and Short Term Plus strategies. A customizable Short Term Municipals strategy is available as well.
Short Duration Income Solutions
The SBH Short Term strategies seek to provide income without taking significant interest rate risk. As illustrated in Exhibit 1, the strategies have historically yielded more than a money market fund, without taking significantly more duration risk. In addition, while money market funds may provide relative safety to investors, they often have gates, higher fees, and other components that can make them a less preferable investment.
Exhibit 1: SBH Short Term Strategies Offer Attractive Yield with Low Duration
Yield to Worst* on Cash Alternatives
(As of 12/31/23)
Duration on Cash Alternatives
(As of 12/31/23)
Sources: BondEdge, Bank of America Merrill Lynch (BofAML), Bloomberg as of 12/31/23. Past performance does not guarantee future results.
1 0-1 Year U.S. Treasury represented by the BofA ML 0-1 Year Treasury Bill Index
2 Money Market represented by the Vanguard Prime Money Market Fund
3 1-3 Year U.S. Gov’t/Credit represented by the Bloomberg 1-3 Year U.S Government/Credit Index
+ Yield to Worst is the lowest return that can be received on a bond without the issuer defaulting.
Access a Full Range of Short Term Capabilities
Segall Bryant & Hamill offers the ability to customize actively managed, institutional-quality strategies.
An Opportunistic and Flexible Approach
- Customizable portfolios to meet specific investor objectives.
- Option for a customizable short term muni portfolio.
- Ability to take meaningful positions in smaller credits that are less efficiently traded.
- Historically higher-yielding option than traditional money market funds.
- Short-term liquidity with no redemption gates or liquidity fees.
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Fixed Income Team
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Investment Vehicles
Short Term Fixed Income strategy
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All opinions expressed in this material are solely the opinions of Segall Bryant & Hamill. You should not treat any opinion expressed as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of the manager’s opinions. The opinions expressed are based upon information the manager considers reliable, but completeness or accuracy is not warranted, and it should not be relied upon as such. Market conditions are subject to change at any time, and no forecast can be guaranteed. Any and all information perceived from this material does not constitute financial, legal, tax or other professional advice and is not intended as a substitute for consultation with a qualified professional. The manager’s statements and opinions are subject to change without notice, and Segall Bryant & Hamill is not under any obligation to update or correct any information provided in this material.
