Fixed Income Mandates
Our philosophy in managing fixed income portfolios is based on two fundamental beliefs:
- All decisions and strategies are based on the Preservation of Capital,
- The opportunities, with quantifiable risk, within bond markets, rewards an Active Management approach.
Preservation of Capital
In an effort to protect our clients’ capital, we focus our research and the resulting portfolio on high quality issuers. The assessment of quality is based on internal credit analysis and a qualitative judgment based on our outlook. In addition to our emphasis on high quality, we approach the research process with a conservative mindset. This conservatism has meant that we do not rely solely on the credit rating agencies. While we review their opinions, we believe that it is important to complete first hand research of the security covenants, company fundamentals, industry forces and legislation, that might affect the holdings in our portfolio.
Active Management
We believe market volatility and inefficient markets allow for an active approach to bond management that can add value to portfolio results over the long run, while helping to reduce risks in the portfolio. Our philosophy towards active management is based on three principles: an approach that considers both capital gains and income in decision-making, gradualism, and the capturing of incremental gains.