The strategy seeks to achieve a high level of current income consistent with preservation of capital.
- Security and sector selection has the potential to pay over time through income
- Liquidity premiums can be exploited
- Interest rate anticipation increases risk (volatility) and must be controlled at all times.
We employ a fundamental investment process to construct a diversified portfolio of high quality fixed income securities that aims to deliver consistent excess returns (income) with low volatility.
The fixed income securities in which the strategy may invest include, but are not limited to, bonds, convertible securities, municipal securities, mortgage-related and asset-backed securities, and obligations of governments and their agencies. In addition, the strategy may invest in derivatives. The strategy seeks to maintain a duration of three years or less.