VTC - Choosing A Fixed Income Allocation With Portfolio Optimization

• A fixed income investment can serve as diversifier against equities, a source of income, or even protection against inflation when using TIPS.
• As interest rates and inflation expectations evolve, a tactical rules-based approach to portfolio optimization can help provide investors with a flexible fixed income allocation in different scenarios.
• Three of the more common fixed income characteristics are duration, credit quality, and product/sector type. An investor's allocation to each of these may depend on the economic cycle and yield curve.

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