Value in All Market Environments
Fixed income markets are constantly in flux, challenging investors to analyze ever changing, complex information. We believe that our philosophy of active management utilizing a robust set of proprietary tools in the hands of our experienced team is the best approach to add value to our clients’ portfolios.
History has shown that it is difficult to consistently predict the future of interest rates. To profit, the investor must accurately forecast not only the direction of the change, but also its timing and magnitude. Analyzing the current environment, our team of financial professionals will develop a thorough range of interest rate scenarios, including rising, falling and stable rate environments which may occur at a six-month horizon. This proprietary, quantitative process allows us to construct portfolios designed with the potential to exceed benchmark returns over a wide range of possible rate changes.
Key Steps in Pursuit of Optimal Performance
We seek to outperform the benchmark while managing risk by acting on the following key steps:
- Constraining portfolio duration relative to the benchmark
- Strategically allocating assets to market sectors, and rotating sectors as values change
- Positioning securities along the yield curve to capture additional value
- Selecting bonds that we believe offer the greatest potential for risk-adjusted return