Core Fixed Income

Our Core fixed income portfolios seek to provide consistent returns and the stability afforded by focusing on high quality securities. We believe in achieving the highest returns from a portfolio of fixed income securities through:

  • Sector allocations
  • Active management of the portfolio’s average duration and maturity distribution in anticipation of changes in interest rates
  • Individual security selection to capture relative value

Our process is consistent with an absolute commitment to a conservative approach. We avoid excessive risk and do not reach for extra yield. A well-diversified and high-quality portfolio has allowed us to add incremental value in normal market environments and perform exceedingly well in more difficult times.

Our fixed income portfolio approach:

  • We modify portfolio duration to protect principal or capture gains.
  • We adjust maturities with expected changes in the shape of the yield curve.
  • Sector weights are based on their relative risk/reward profile.
  • Portfolios are invested in investment grade securities.
  • We constantly review the credit outlook for portfolio holdings.

We allocate assets to various sectors of the bond market—primarily governments, mortgages, corporate, and asset-backed securities—to provide the greatest risk-adjusted relative returns. Our core fixed income portfolios hold between 100 and 120 securities.

Strategy Performance & Characteristics