Fixed income

U.S. Aggregate Income Focus Strategy

The strategy aims to maximize investment income and total return, preserve capital, and maintain liquidity. The strategy mainly focuses on investment-grade corporate bonds, but government and agency bonds make up 15% to 25% of the portfolio.

Products offered
  • Separate Account
    • U.S. Aggregate Income Focus

Competitive advantages

Yield-enhanced total return solutions

​Consistent and competitive long-term performance, on both an absolute and risk-adjusted basis.

Benchmark-aware vs. Benchmark-centric

Absolute return orientation and flexibility to focus on less efficient sectors within the market.

Client partnership model

An extension of each client’s team—a tailored portfolio, not a “product.”

Optimal team structure

The team is functionally organized to extract value from the market.

Competitive income and risk controls

Well-underwritten income seeks to drive competitive total return and information ratios.

Investment approach

Focus on yield advantage and security selection

Evaluation of relevant market themes forms the basis for portfolio strategy.

Regularly scheduled meetings are held to discuss macro strategy, thematic sectors, market trends, and name-specific reviews.

The portfolio framework is constructed using team strategy conclusions.

Sector targets, duration and curve views, quality bias, and liquidity targets are considered.

Credit sector portfolio managers implement high-conviction ideas into portfolios.

The team blends rigorous fundamental research within a robust relative-value framework.

The sell discipline is driven by valuation and risk management.

The process encompasses valuation, fundamentals, and partnership with credit analysts.

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Composite performance

Average annual returns

Average annual returns

(as of 9/30/2024)
10/1/2003
1M
3M
YTD
1Y
3Y
5Y
10Y
Inception
Composite (Gross)
1.35
5.00
5.00
12.21
-1.00
1.11
2.79
4.53
Composite (Net)
1.33
4.94
4.81
11.91
-1.29
0.82
2.49
4.18
Benchmark
1.40
5.10
4.39
11.31
-1.50
0.41
2.00
3.29
Benchmark
1.34
5.20
4.45
11.57
-1.39
0.33
1.84
3.25

Performance is historical and does not guarantee future results. For more information, please refer to the GIPS composite report found in the documents section.


Calendar year

Calendar year

2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Composite (Gross)
6.09
-12.91
-1.53
10.45
10.86
-0.87
5.28
4.32
1.47
7.75
Composite (Net)
5.78
-13.17
-1.82
10.13
10.53
-1.16
4.97
4.01
1.16
7.43
Benchmark
5.72
-13.58
-1.75
8.93
9.71
-0.42
4.00
3.05
0.15
6.01
Benchmark
5.53
-13.01
-1.54
7.51
8.72
0.01
3.54
2.65
0.55
5.97

Performance is historical and does not guarantee future results. For more information, please refer to the GIPS composite report found in the documents section.


Our team
Meet the investment team

To deliver strong performance for clients, the team maintains an intense focus on finding high-quality, well-underwritten bonds with a competitive income advantage.

View Team
Scott

Scott Smith

Head of Investment Grade Income
Jonathan

Jonathan Terry

Portfolio Manager

Key risks

Market risk: Security markets are volatile and may decline significantly in response to adverse issuer, regulatory, political, or economic developments with different sectors of the market and different security types reacting differently to such developments.

Debt securities risk: Debt securities are subject to both credit and interest rate risk. Credit risk is the possibility that the issuer or guarantor of a debt security may be unable, or perceived to be unable or unwilling, to pay interest or repay principal when they become due, and credit risk increases as an issuer’s credit quality or financial strength declines. Interest rate risk is the possibility that interest rates will change over time such that when interest rates rise, the value of debt securities tends to fall and the longer the terms of the debt securities held the greater the impact of this risk.

High yield risk: If a strategy invests in high yield securities (commonly known as junk bonds), these securities are considered speculative and have a much greater risk of default or of not returning principal and their values tend to be more volatile than higher-rated securities with similar maturities.

Foreign securities risk: If a strategy invests in the securities of non-U.S. issuers, these investments may be subject to lower liquidity, greater price volatility, and risks related to adverse political, regulatory, market, or economic developments and may be affected by changes in foreign currency exchange rates.

Investors should know that this strategy deployed may be subject to additional investment risks. For important information about the investment manager, please refer to the investment manager’s Form ADV Part 2, which is available upon request.

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We look forward to helping you with your investment needs

 

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