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

Investment approach

  • 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.

Vehicle: Separately Managed Account, Mutual Fund

 

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