Government/Corporate

Discipline

A committee of senior investment professionals from each asset class determines asset allocation for portfolios, and is responsible for assessing relative value among sectors and monitoring customized client guidelines and risk preferences. The implementation of our philosophy enables the portfolio management team to add significant return potential to portfolios. In allocating to certain sectors, we must be confident that market conditions are conducive to success and that probability-weighted, risk-adjusted total return potential is greater than elsewhere. Our asymmetric risk preference profile determines the probability of a sector's outperformance. Our portfolios will be well diversified and will typically be structured with a yield bias.

The Fixed Income team utilizes a rigorously applied sell discipline. A bond becomes a sell candidate when it becomes "fully-priced" due to narrowing yield spreads, adverse trends in credit quality or certain supply/demand factors.