Investment Grade Corporate Credit

Inception date Benchmark Total strategy assets Product literature
September 30, 2009 BBG Barclays U.S. Corporate Bond Index $8.3B (As of November 2017) Strategy profile (PDF)
  • Highlights
  • Performance

Objective**

The strategy seeks to achieve above-average total return with commensurate volatility relative to the benchmark through an actively managed, broadly diversified exposure to investment-grade issues over a credit cycle.

Product highlights

  • The team believes generating outperformance over time requires avoiding deteriorating credits, identifying opportunities for capital appreciation, adhering to a stringent risk management process, and actively managing the portfolio's profile from the top down
  • The managers emphasize a top-down macro framework with a bottom-up fundamental credit research as the primary driver of portfolio returns, seeking to exploit inefficiencies and opportunities within the investment-grade market
  • Security selection is primarily driven by weighing the relative value offered versus the potential risk-adjusted return
  • Invests mainly in investment-grade, corporate debt securities, but may also invest in some high-yield and emerging-market debt as well as derivatives
  • Tracking error will typically range between 1.25% and 2.0%
  • Typical duration of +/- 0.25 per year versus the index

Investment team

Assets may include accounts that are not reflected in the composite.

**No assurance can be given that the investment objective will be achieved or that an investor will receive a return of all or part of his or her initial investment. Actual results could be materially different from the stated goals. Investors should carefully consider the risks involved before deciding to invest. See the product profile for a summary of risk considerations. As with any investment, there is a potential for profit as well as the possibility of loss.

Tracking error targets are based on a number of assumptions and are subject to revision and may change materially with changes in underlying assumptions. While the investment manager considers tracking error in the investment process, the strategy's composition and performance may vary substantially from that of the target. Achieved tracking error is the result of many factors, including market conditions and there can be no assurance that the tracking error actually reflected in client portfolios will be at levels indicated in the investment objectives.