A Process Refined Over Time
Since the firm’s inception in 1988, we have developed and refined our unique process—a blend of quantitative analysis and qualitative insights of the fixed income markets judiciously applied by a team of seasoned financial professionals.
A Disciplined Portfolio Management Approach
To consistently add value to client portfolios across all economic and market cycles, we adhere to a disciplined, well-defined process. Our proprietary Horizon Analysis Model is the quantitative foundation for Chandler’s portfolio construction process. The Model enables the portfolio management team to integrate its research into the portfolio management process in a quantitative, disciplined, and repeatable way.
Inputs to the Model include: (1) current yields on Treasury, agency and corporate securities; (2) specific client constraints, such as maturity restrictions and maximum sector exposure; and (3) a thorough range of forecasted interest rate scenarios based upon a six-month horizon date.
Through an iterative process, the Model generates what we believe is the “optimal portfolio structure” (duration, maturity distribution and sector allocation), which is the portfolio designed with the goal of achieving a return greater than the benchmark in each of the interest rate scenarios. That is, the Model generates a portfolio structure that we expect will outperform the portfolio’s benchmark over a wide range of possible future interest rate movements.