A bond’s risk-adjusted total return prospects drive our process.
This pursuit usually prompts heavy consideration of the market’s higher yielding sectors, such as corporate bonds and mortgage-backed securities.
As these sectors are more research-intensive, our portfolio managers utilize high-end analytical tools and services, including independent credit research firms to augment any internal credit work. To control interest rate risk relative to a client’s benchmark, we perform exhaustive assessments of individual security durations. This allows us to accurately maintain portfolio price movements in line with a given market benchmark.
While each fixed income professional has the experience and the latitude to manage individual client portfolios, our fixed income team meets together on a bi-weekly basis to assess the macroeconomic and market environments, and to share viewpoints on relative value in the marketplace. These meetings, combined with ongoing daily interaction among Portfolio Managers, form the basis of consolidated firm-wide opinions on fixed income investment topics. The application of these opinions promotes a consistency across all client portfolios and makes the most of the collective experience of our fixed income team.
Our Portfolio Managers regularly review all important variables of a fixed income portfolio, including sector allocations, income level, average quality and yield curve positioning, as well as individual security creditworthiness and structures. Advanced analytics are brought to bear on all buy and sell decisions, as a high degree of quantitative analysis gives Portfolio Managers a strong understanding of likely future scenarios for individual bonds and total portfolios.
Finally, when an investment decision is made, the Portfolio Manager personally executes the trade. This creates a thoroughly fluid, adept, and opportunistic trading dynamic, as no approval committees are involved.