January 2023 – Tactical Income Solution Updates

Thank you for your continued trust and confidence. We would like to inform you that we made several changes to the Tactical Income Solution strategy.

We sold the Eaton Vance Floating Rate Fund (EIBLX) and reduced the Lord Abbett Short Duration Income Fund (LDLFX) position from 15% to 10%. Proceeds from those trades were invested in PIMCO Investment Grade Credit Bond (PIGIX) and Vanguard Long-Term Investment Grade Fund (VWETX). We believe these trades will increase credit quality, extend duration, and manage costs within the fixed income portion of our portfolio.

We believe that moderation in inflation data, potential for an economic slowdown, and the repricing of many fixed income assets in 2022 has resulted in more attractive fixed income risk-reward profiles. We continue to prefer investment grade bonds over below investment grade due to their more resilient balance sheet profile and pricing that is more reflective of the embedded risks. The potential for fixed income returns in peak inflationary environments, coupled with recessionary risks, also lead us to believe that there is more upside to bond strategies with longer durations.

We continue to be active and tactical in our fixed income positioning and view the new position as constructive in today’s landscape.

In summary, you nor your clients need to act at this time.

If you have any questions, please don’t hesitate to reach out to us. Thank you for your continued trust and confidence.

Liberty One Investment Management, LLC is a Registered Investment Advisor with the SEC. Liberty One Investment Management’s ADV Brochure, which serves as Liberty One’s primary disclosure document, is available upon request at no charge or may be obtained directly from Liberty One Investment Management’s website at www.libertyoneim.com. An investment in any Liberty One strategy involves risk of loss, including principal, as well as the potential for gain. Before investing, consider the investment objective, risk tolerance, potential for loss of principal, fees, and expenses. Past performance is no guarantee of future results. Diversification and asset allocation do not ensure a profit or guarantee against loss. Liberty One Investment strategies may lose value, are not FDIC/NCUA insured. Liberty One strategies are not suitable for all investors.

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