Core Plus

This product seeks to meet portfolio objectives by balancing risks across a broad opportunity set.  Experienced portfolio managers and rigorous risk management support process.

We draw from our expertise in global markets, inflation linked markets, structured products and credit to generate returns above the benchmark.  Rather than allocate to a sector, we look along the yield curve for the most attractive asset at a given point along the curve.  Our commitment to the MBS sector might be in discount MBS, while our allocation to corporate bonds might be below five years in duration, based on our analysis.  We carefully manage our term structure commitments to take advantage of our views on monetary policy, upcoming supply, or other drives of the yield curve shape.  We make small to medium bets to ensure that excess returns arise from multiple sources.

Given the flexibility of guidelines to use various tools, over a market cycle (3-5 years), the products targets an information ratio of 0.6, to generate return in excess of 100bp of the benchmark without undue tracking error.

Sources of alpha include:

     Duration management
     Term structure management
     Sector selection
     Breakeven inflation relative value trading
     Security selection