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Matt Toms, CFA
Chief Investment Officer, Fixed Income
Sean Banai, CFA
Head of Portfolio Management
Bob Kase, CFA
Senior Portfolio Manager
Dave S. Goodson
Head of Securitized Investments, Fixed Income
Randy Parrish, CFA
Head of Credit
SummaryMaintains a short duration profile of 1-3 years, primarily investing in investment grade securities with a maximum 10% allocation to below IG securities.
PhilosophyWe 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.
ObjectiveTo outperform the Bloomberg Barclays U.S. Government/Credit 1-3 Year Index by 0.75-1.00% over a full credit cycle with annualized tracking error of approximately 0.75-1.50%.
ProcessOur 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.
- A short duration and quality-focused strategy can provide protection in periods of rising rates
- 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 RisksThe 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.
*There is no guarantee that this objective will be achieved.