The professionals at Confluence were among the first to understand how to utilize fixed income exchange-traded funds (ETFs) in separately managed accounts. Within the Fixed Income strategy (Taxable or Tax-Exempt), we strive to deliver the income and lower volatility traditionally available from a diversified bond portfolio. Fixed income ETFs are available in a wide range of maturities across corporate, agency and treasury sectors and over time we will adjust the allocation across these sectors. We may also adjust the average maturity depending upon our interest rate outlook. The allocations will incorporate our viewpoints regarding Fed policy, the shape of the yield curve, relative yields (known as spreads), default rates and other market factors.

• Fixed Income Quarterly (September 2022)

• Fixed Income Taxable Fact Sheet
• Fixed Income Taxable Performance Thru 12-31-22

• Fixed Income Tax-Exempt Fact Sheet
• Fixed Income Tax-Exempt Performance Thru 12-31-22

The Confluence Balanced Accounts are an efficient way to combine equity and fixed income exposure in a single account, while providing diversification and lower volatility. Clients indicate the proportion of their portfolio that they would like to allocate to fixed income ETFs using our Fixed Income strategy (Taxable or Tax-Exempt) and paired with one of our Value Equity strategies. Equity-to-fixed income ratios are available in increments of 10%, ranging from 80/20 to 30/70. Balanced Account management accommodates systematic deposits or withdrawals and includes automatic rebalancing.

• Confluence Balanced Accounts: Pursuing Attractive Returns with Less Risk

Below is an example of how to combine one of our value equity strategies with our Fixed Income strategy to create a Balanced Account.