We believe that sector allocation combined with disciplined risk management results in consistent, value-added returns. Our strategy is to focus on capital preservation while providing a competitive return. We achieve this objective through:
- Stringent credit quality
- Emphasis on portfolio liquidity
- Focus on risk-adjusted returns
Benchmark: BofA Merrill Lynch 1-3 Year Gov/Corp Index
Our Short Duration 1-3 Year Government/Credit fixed income strategy follows a team-oriented, disciplined, top-down investment process. The first step is to formulate an economic outlook to derive yield curve positioning and duration targets. We determine sector weightings based on relative value and the sector and subsector outlook. After determining sector weightings, we conduct extensive analysis on each security, including fundamental and structural analysis, examining relative valuation, and dissecting the risk/reward profile. Our risk management framework focuses on a verification of strategic intent. Areas of emphasis include sector and subsector weights, selecting securities in support of the portfolio risk/reward profile, and managing duration and yield curve positioning in support of our investment process.