We use fixed income benchmarks
The primary goal of our Core Investment-Grade Fixed Income strategies is to structure and manage bond portfolios to match or exceed the return of a fixed income benchmark. The benchmark should be both appropriate and representative of the client’s individual investment objective. These strategies and common benchmark indices include:
Limited Duration Strategies: (Bloomberg Barclays 1-3 Year Government/Credit and Bloomberg Barclays 1-5 Year Government/Credit)
Intermediate Duration: (Bloomberg Barclays 1-10 Year Government/Credit and Bloomberg Barclays Intermediate Aggregate)
Broad Market: (Bloomberg Barclays Government/Credit and Bloomberg Barclays Aggregate)
Our team applies an investment philosophy, strategy, and process when establishing and managing our clients’ individual portfolios. Importantly, the distinguishing characteristic among each strategy is the universe of bonds constituting the benchmark index. Portfolio selection is confined by the chosen benchmark index.
Individual client objectives and guidelines also help us to make each determination. Our investment management team ensures there is a suitable match between the client objectives and the benchmark index.
Though our approach is a customized one, our goal is to maintain consistency among portfolios – duration bias, sector exposure, quality profile, and credit selection are uniformly applied across each strategy.
In addition to our Core Investment Grade Product, we also offer the following strategies:
Treasury Inflation-Protected (TIPS): Indexed “Real Return” Strategies
Tax-Advantaged: Municipal Bond Portfolio Strategies
Liability-Driven: Immunization, Dedication, and Customized Strategies
Bloomberg Barclays 1-3 Year U.S. Government/Credit Index: Includes all medium and larger issues of U.S. government, investment-grade corporate, and investment-grade international dollar-denominated bonds that have maturities of between 1 and 3 years and are publicly issued.
Bloomberg Barclays 1-5 Year Government/Credit Index: A broad-based benchmark that measures the non-securitized component of the Barclays U.S. Aggregate Index. It includes investment grade, U.S. dollar-denominated, fixed-rate Treasuries, government-related and corporate securities that have a remaining maturity of greater than or equal to one year and less than five years.
Bloomberg Barclays Intermediate Aggregate Index: An unmanaged index that consists of 1-10 year Governments, 1-10 year Corporates, all Mortgages, and all Asset-Backed securities within the Aggregate Index (i.e. the Aggregate Index less the Long Government/Corporate Index).
Bloomberg Barclays Intermediate Government/Credit Index: An unmanaged index based on all publicly issued intermediate government and corporate debt securities with maturities of 1-10 years. This index represents asset types which are subject to risk, including loss of principal.
Bloomberg Barclays U.S. Aggregate Bond Index: An unmanaged index composed of securities from the Bloomberg Barclays Government/Corporate Bond Index, Mortgage-Backed Securities Index and the Asset-Backed Securities Index. Total return comprises price appreciation/depreciation and income as a percentage of the original investment. Indices are rebalanced monthly by market capitalization.
Bloomberg Barclays Govt/Credit Bond Index Unmanaged Index: Tracks the performance of US Government and corporate bonds rated investment grade or better, with maturities of at least one year.