Fixed income – Treasuries
Under normal circumstances, KCM will invest at least 80% of its net assets in full faith and credit U.S. Government obligations.
In selecting investments for fixed incomes, KCM tries to increase total return without adding undue risk by analyzing yields and economic factors, such as expected inflation. The investments include Treasury Bonds, Treasury Notes, Treasury Inflation-Protected Securities and short-term U.S. Government money market funds.
KCM considers, among other things, the security’s interest rate, yield, maturity and inflation protection.
KCM actively manages the maturity of the security to increase the total return based on current market interest rates and our outlook on the market.
Although U.S. Government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates.