Why choose this strategy?
- To outperform the benchmark while maintaining moderate volatility
- As an actively managed, benchmark-aware fixed income allocation
Investment strategy
- Portfolio managers seek to identify the best opportunities using Loomis in-house research, emphasizing bottom up security selection combined with top down macro analysis
- Investment ideas are evaluated on a potential return versus contribution to portfolio risk basis, emphasizing diversification
- Risk is managed on an overall portfolio basis, and kept within defined ranges to capitalize on potential market opportunities
- Duration is typically managed within a close range to the index. Duration bands are +/- 1 year, but typically it is managed closer
- Investment flexibility is constrained to the investment grade portion of the US fixed income markets, and typically includes US Treasurys, Agencies, Investment Grade Corporates, Mortgages Backed Securities (MBS), Asset Backed Securities (ABS), Commercial Mortgage Backed Securities (CMBS), and Yankee Bonds
- Strategy holdings are typically between 50-90 individual securities, and also utilizes no-fee funds for access to higher minimum securities and provide additional diversification
