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Strategic Bond

The Strategic Bond strategy seeks to achieve capital appreciation and income with a low correlation to interest rate movements.

 

Inside the Strategy

  • The strategy seeks to achieve the investment objective by investing at least 80% of the value of its net assets in a broad set of fixed income securities, such as U.S. Government securities, corporate fixed income securities, high yield bonds, bank loans and collateralized loan obligations, tax-exempt municipal bonds, U.S. Treasury bonds, Treasury inflation-protected securities (TIPS), mortgage-backed and asset-backed securities, and derivatives.
  • The strategy's unconstrained bond approach is not managed to a benchmark or limited by maturity, sector, quality or geography. A broader investable universe means greater opportunity for uncovering attractive relative value. This flexibility allows the strategy to potentially minimize interest-rate exposure and to provide positive returns across different market environments with low correlation to equity markets. Also, the use of alternative fixed income strategies can provide enhanced diversification benefits to traditional portfolios.
  • We believe that the strategy's alpha-oriented, strategic bond approach offers more potential upside than trading-oriented strategies and lower downside risk than thematic investment strategies. We are not high-frequency traders or forecasters of macroeconomic movements. Our bottom-up, fundamental investment process capitalizes on the strength of the team’s credit research and actively hedges interest rate risk, selectively allocates to sectors in order to manage credit risk, and, at times, invests opportunistically.

Inception: 09/30/2010

Benchmark: Bloomberg Barclays Intermediate U.S. Aggregate Bond Index

Portfolio Managers: Thomas D.D. Graff, CFA and Rob Snyder

Vehicle: Separately Managed Account, Mutual Fund

Publications

Downside Protection in a Rising-Rate Environment
Our clients want many things from bonds: income, diversification, liquidity, outperformance. But one goal consistently rises above the others: stability. Here, our fixed income team discusses how our Strategic Bond strategy offers stability, especially in the current environment of rising interest rates.

Learn More

 

By viewing the documents on this page, you confirm and accept that you are an institutional client and are acting on behalf of your client as their authorized advisor or are seeking information as a representative of an institution and that you have read and understood the terms on which the information is being provided.

The information in this section of the website is for information purposes only and does not constitute a recommendation or investment advice to buy or sell securities.

Some Brown Advisory strategies may meet your needs and objectives more effectively than those referred to in this section of the website. For more information, please contact us directly. For more information on all U.S. strategies, please see the list of strategies on the right column of this page.

The contents of this section of the website have not been prepared for the benefit of investors outside the United States. They are not directed at any person or entity elsewhere, nor are they intended for distribution or to be used by any person or entity outside of the United States. In some countries, the distribution of information in this section of the website may be restricted: it is your responsibility to find out what those restrictions are and to observe them. Brown Advisory cannot be liable for a breach of such restrictions. Non-U.S. investors should consider their local regulations before considering investment.

 

Strategy Resources

 

Click here to see all Brown Advisory investment strategy documents.

 

Please read our composite disclosure and other important firm disclosures.

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U.S. Institutional Content Disclosure

 

 

By viewing the documents on this page, you confirm and accept that you are an institutional client and are acting on behalf of your client as their authorized advisor or are seeking information as a representative of an institution and that you have read and understood the terms on which the information is being provided.

The information in this section of the website is for information purposes only and does not constitute a recommendation or investment advice to buy or sell securities.

Some Brown Advisory strategies may meet your needs and objectives more effectively than those referred to in this section of the website. For more information, please contact us directly. For more information on all U.S. strategies, please see the list of strategies on the right column of this page.

The contents of this section of the website have not been prepared for the benefit of investors outside the United States. They are not directed at any person or entity elsewhere, nor are they intended for distribution or to be used by any person or entity outside of the United States. In some countries, the distribution of information in this section of the website may be restricted: it is your responsibility to find out what those restrictions are and to observe them. Brown Advisory cannot be liable for a breach of such restrictions. Non-U.S. investors should consider their local regulations before considering investment.

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