Acquisition and Disposition
The relative value analysis for the Core 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: Baa3 or BBB- for individual securities
- Minimum weighted average quality: A
- Maximum single issuer exposure: 5%
- Maximum industry limit: 10% (excluding U.S. Treasuries)
- Guidelines tailored to client-specific needs