Our Preservation of Capital Investment strategy is suited for those who prioritize price stability over price growth. The main objective here is the safety of principal.
When Growth Isn’t the Only Goal
There comes a point in most financial plans when growth is no longer the only goal. Taxes come due. Gifts are made. Distributions begin and life happens. In those moments, how your money is allocated across different types of investments can make all the difference.
As priorities shift, investors may place greater emphasis on income, stability, and safeguarding what they’ve built. That’s where bonds come into the picture. This part of the portfolio, commonly called fixed income, is intended to provide more predictable income and help manage volatility over time.
Equity strategies and fixed income can work together. Stocks support long-term growth, while bonds help provide income and stability along the way.
Focused on Income & Stability
Preservation of Capital, our actively managed fixed income strategy, is designed to generate steady income while helping preserve your original investment. The strategy aims to manage key risks, including borrowers’ ability to repay their debts, sensitivity to interest-rate changes, and how income is reinvested. It invests across a diversified mix of securities, including agency, corporate, mortgage-backed, municipal, preferred, and U.S. Treasury securities.
Not all fixed income is the same. During years when the bond market declined, Preservation of Capital has historically experienced smaller losses than the broad bond market index.1 A disciplined approach to these key risks can make a meaningful difference in periods of market stress, further supporting your financial goals.
Support Through Changing Markets
A thoughtfully constructed fixed income portfolio does more than cushion volatility; it helps fund both planned and unplanned needs. Everyday life obligations don’t pause during market downturns. Without reliable income, investors may face a difficult choice: sell stocks at an unfavorable time or reduce spending.
Fixed income is sometimes viewed as a reluctant concession rather than a strategic choice. However, maintaining a stable bond portfolio during long periods of strong stock market performance is often what allows investors to stay committed when conditions change. Knowing a portion of the portfolio is steady and producing income can make periods of uncertainty easier to navigate.
A Foundation for Long-Term Confidence
Preservation of Capital can stand alone as a fixed income strategy or be paired with our other equity strategies based upon the needs of your portfolio. The goal remains the same: consistent income, principal protection, and support for the lasting success of your financial plan.
This article was featured in the Spring 2026 edition of the Rising Dividend Report.
Read more articles from this issue here.
This has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Information obtained from third-party sources is believed to be reliable though its accuracy is not guaranteed. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of publication and are subject to change without notice. Past performance is not indicative of future results.