Core Conservative Strategy
A quintessential “no surprises” strategy, this lower-risk Core Fixed Income Strategy has generated virtually all of its excess return over the past 23 years from bottom-up subsector and security selection. This strategy seeks consistent outperformance with a modest tracking error, and has been managed by the same portfolio manager since inception.
Intermediate Core Conservative Strategy
A variation of our Core Conservative Strategy, this intermediate duration strategy similarly has historically generated virtually all of its excess return from bottom-up subsector and security selection. Often the choice of stable value plans, this strategy is managed by the same portfolio manager as the Core Conservative Strategy, with the same approach applied to an intermediate duration benchmark.
Investment Grade Corporate Bond Strategy
Investment grade corporate bonds look attractive today, particularly given stable-to-improving fundamentals across many industries. For plans seeking U.S. corporate bond exposure, this strategy seeks to provide consistent outperformance over corporate market benchmarks with a high information ratio. We know credit, and we prioritize research—this strategy is managed by a seasoned corporate bond team that benefits from the fundamental credit research insights of a large and dedicated research team whose senior analysts average 15 years’ experience.
Long Duration Corporate Strategy
The merits of extending duration to better match plan liabilities are well known. This strategy offers a time-tested approach to long duration management from a firm with decades of experience solving liability problems. With $177 billion under management in corporate bonds, including nearly $22 billion in long duration corporate bonds, we have an intricate understanding of the unique role long duration corporate bonds play in many liability solutions.
Long Duration Government/Credit Strategy
Long Duration Government/Credit Strategies are a straightforward way for plans to extend duration. For the past 14 years, this strategy has emphasized high-quality spread sectors over lower-yielding government sectors, prioritizing bottom-up, research-based security selection. Long duration exposure is maintained at all times, and disciplined risk budgeting helps size each position appropriately to limit both tracking error and idiosyncratic risk.
As of December 31, 2012.