Investment Management

Core Plus

Portfolio Managers

Matt Toms, CFA Photo

Matt Toms, CFA

Chief Investment Officer, Fixed Income

Sean Banai, CFA Photo

Sean Banai, CFA

Head of Portfolio Management

Bob Kase, CFA Photo

Bob Kase, CFA

Senior Portfolio Manager

Dave S. Goodson Photo

Dave S. Goodson

Head of Securitized

Randy Parrish, CFA Photo

Randy Parrish, CFA

Head of Credit

Summary

Total return approach, investing across full spectrum of the fixed income market including up to 20% in below investment grade securities

Philosophy

We believe that intensive security level research paired with a broadly informed awareness of the economic and credit cycle is critical to identifying superior investment opportunities and managing downside risk.

Objective

To outperform the Bloomberg Barclays U.S. Aggregate Index by 1.25-1.75% over a full credit cycle with annualized tracking error of 1.5-2.5%

Process

Our investment process involves a focus on macro themes, which are incorporated in every aspect of the decision-making process. We integrate quantitative and fundamental analysis at the center of the disciplined, bottom-up security selection approach. Feedback loops across all teams ensure that all elements are continuously connected. Strong risk budgeting, risk management and compliance capabilities ensure quality checks and balances. Ultimately, we seek consistently competitive returns appropriate to each client's mandate and risk tolerance.

Competitive Advantage

  • Top-down macro themes shape overall strategy and provide context for our bottom-up security selection
  • Balanced emphasis on quantitative and qualitative inputs foster strong checks and balances and validation for our investment themes
  • Proprietary risk budgeting and management tools guide portfolio construction
  • Historically competitive performance over time and within each component of the portfolio

Principal Risks

The principal risks are generally those attributable to bond investing. Holdings are subject to market, issuer, credit, prepayment, extension and other risks, and their values may fluctuate. Market risk is the risk that securities may decline in value due to factors affecting the securities markets or particular industries. Issuer risk is the risk that the value of a security may decline for reasons specific to the issuer, such as changes in its financial condition. The strategy may invest in mortgage-related securities, which can be paid off early if the borrowers on the underlying mortgages pay off their mortgages sooner than scheduled. If interest rates are falling, the strategy will be forced to reinvest this money at lower yields. Conversely, if interest rates are rising, the expected principal payments will slow, thereby locking in the coupon rate at below market levels and extending the security’s life and duration while reducing its market value. High yield bonds carry particular market risks and may experience greater volatility in market value than investment grade bonds. Foreign investments could be riskier than U.S. investments because of exchange rate, political, economic, liquidity and regulatory risks. Additionally, investments in emerging market countries are riskier than other foreign investments because the political and economic systems in emerging market countries are less stable.

*There is no guarantee that this objective will be achieved.

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