In the Beginning


Insurers should dollar average into a CMO portfolio by setting an initial target amount and building to that level with regular investments, advisers say.


It’s an interesting program because we have a dialogue on a monthly basis.


Bob Hughes, Gray Insurance Company


“As we’ve seen the success of the program we’ve become more comfortable with this type of investment and we’ve seen the way Allen and Ray operate,” North Star Mutual’s Joe Hoff said. “This allowed us to gradually increase our commitment. It was very important that we see that they’re very focused, which they are.”


Gray Insurance’s Bob Hughes said he started with an initial target amount and then grew the portfolio of CMOs through compounding and additional investments. An ongoing dialogue with Ray and Allen keeps him informed in an investment market that continually changes.


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