The Investment Grade Debt team seeks to generate consistent risk-adjusted outperformance relative to the Barclays U.S. Aggregate Bond Index while exhibiting similar levels of risk. The team believes such outperformance can be achieved by operating within a risk-controlled framework, employing a shorter-term investment horizon of 6-12 months, and expressing top-down views primarily via active sector allocation.
We take a top-down, bottom-up investment approach, where our 6-12 month investment outlook influences portfolio manager risk budgeting across drivers of return. Sector-dedicated research analysts are responsible for security analysis and selection. Risk management is critical throughout our process and includes multi-layered/dimensional risk limits as well as the use of various proprietary tools including stop-outs.
There can be no assurance that any investment process or strategy will achieve its investment objective.
- Strict Adherence to multi-layered and multi-dimensional risk limits
- Regular reconciliation to portfolio risk budgeting targets
- Disciplined use and employment of stop-outs
Independent Risk Management Team: Portfolio Level Monitoring
- Projected portfolio volatility and tracking error
- Various interest rate and spread sensitivity metrics
- Active sector and issuer weights
Independent Risk Management Team: Firm Level Monitoring
- Comprehensive portfolio review with investment team and senior management
- Individual security holdings across the entire firm