Screening and Analysis
We screen the non-investment grade universe for corporate bonds that meet our standards. In our security analysis, corporate bonds are subjected to a fundamental analysis of financial statements and an in-depth proprietary analysis. We also conduct a valuation of the entire capital structure for corporate bonds, as well as a credit review in our weekly research meetings.
Acquisition and Disposition
The relative value analysis for the Corp Core Plus Fixed Income strategy is based on our proprietary spread data, and a robust fixed income analytic infrastructure. Our investment committee oversees the portfolio strategy, and reviews portfolio structure. The portfolio manager makes the final decision for security acquisition.
The portfolio’s strict sell discipline includes if the risk/return on a security becomes unfavorable; if an attractive swap candidate emerges; if an analyst uncovers deteriorating credit fundamentals; if portfolio rebalancing is required; or based on client specific needs.
• Minimum quality: Caa or CCC for individual securities
• Minimum weighted average quality: Baa2
• Maximum single issuer exposure: 5%
• Maximum industry limit: 15%
• Maximum high yield exposure: 20%