The Louisville Trust Company's general objective for fixed income accounts is to produce the highest level of income that is consistent with safety of principal. Because long-term investors are not paid for taking risks with income instruments, we focus on buying quality.

Our income investment strategy includes:

• A focus on investment grade quality to reduce risk and preserve capital
• Evaluation of risk versus yield reward
• Duration and forecast for interest rate environment
• Active management to reduce volatility and maintain income levels

Income investments include BBB+ rated or better corporate bonds, U.S. Treasuries, and–if appropriate–foreign government bonds. Preferred stocks, convertible bonds, and dividend producing income stocks provide a competitive level of income and a hedge against inflation, with potential for an increasing income stream.