We take a differentiated, transparent and bottom-up approach to investment management, focusing on finding relative value among the tens of thousands of securities in the fixed income market.
Our investment process is driven by security selection, duration management, yield curve positioning and sector allocation, in concert with overall portfolio management.
We aim to identify undervalued securities that offer a strong total return profile relative to similar securities.
We focus on the most inefficient parts of the market, which often results in owning securities that are not included in the benchmark and are overlooked by peers but can offer strong risk-adjusted returns.
Duration is carefully managed to help control interest rate risk; however, we use it sparingly as an active portfolio management tool.
In conjunction with the portfolio duration decision, we identify broad interest rate trends and supply and demand relationships that may influence the shape of the yield curve.