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:
- Current yields on Treasury, agency and corporate securities
- Specific client constraints, such as maturity restrictions and maximum sector exposure; and
- 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 & 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.
Designed for Above –
Benchmark Expected Returns
Our portfolio structuring process is designed with the goal of providing above-benchmark expected returns over a range of interest rate scenarios.
We actively manage yield curve structure and sector allocation while maintaining duration close to the benchmark.
Our proprietary, quantitative Horizon Analysis Model enables our investment team to analyze various yield curve structures and sector allocations across numerous interest rate and yield curve scenarios.
Fundamentals Key to Pursuit of Optimal Portfolio
We believe that actively managing fixed income portfolios using robust quantitative analysis and qualitative insights can provide superior risk-adjusted returns across a broad range of market environments. The objective of our disciplined management process is to build a portfolio we expect will exceed benchmark returns over a range of market conditions without the assumption of undue risk. To pursue this goal, we focus on the fundamental elements that create value in fixed income portfolios: duration, sector allocation, yield curve management and security selection.
Our Investment Process
Our proprietary quantitative process suggests optimal portfolio structures
Proprietary quantitative Horizon Analysis Model suggests target duration, sector allocation and term structure
The security selection process employs quantitative tools and rigorous qualitative analysis to determine relative value
We take a disciplined, comprehensive approach to credit research by carefully selecting from a diversified group of securities, and manage exposure to credit risk.
Rigorous analysis leads us to select individual bonds that offer the appropriate risk/return characteristics.