The US Long Duration Fixed Income is a comprehensive fixed income strategy offering exposure to US long-duration fixed income comprised of a core allocation of higher-quality, income-generating assets. It seeks to deliver excess yield sources from across the fixed income universe while maintaining the discipline of a long duration fixed income holding.
Broader opportunity set
Draws on a wider opportunity set than traditional benchmarks, combining exposures to complement rather than concentrate risk
Integrated expertise
Dedicated sector specialists and multisector portfolio management bring their insights together into a coherent portfolio
Seeks repeatable alpha
Pursues appropriate compensation for each incremental risk taken, rather than relying on yield or spread alone
Fixed income markets can offer various sources of risk premia with differing efficiencies. Credit markets are asymmetric, potentially offering attractive long-term compensation that may require deep fundamental research to capture. More idiosyncratic markets tend to be less efficient, creating greater potential for excess return.
Disciplined research, positioning across the efficiency spectrum where the potential reward justifies the risk, may allow for exploitation of these inefficiencies.
Establish strategic asset allocation through analysis of risk-return characteristics across fixed income sectors to determine baseline exposures consistent with investment objectives.
Cyclical tilts to risk and sector allocations, integrating top-down and bottom-up research to reflect current market conditions.
Security selection aims to elevate highest-conviction ideas, optimized within defined portfolio parameters. Client objectives and a risk management overlay guide each step through to portfolio construction.
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Risk Disclosures
Investing involves risk, including the possible loss of principal.
Investments in derivatives may involve additional expenses and are subject to significant loss if they perform differently than anticipated. Derivatives are also subject to the risk that the counterparty may fail to perform its obligations.
Fixed income securities can lose value, including the possible loss of principal. Fixed income securities are subject to credit risk and interest rate risk. Credit risk is the risk that an issuer of a fixed income security may be unable to make interest payments and/or repay principal in a timely manner. Interest rate risk is the risk that prices of bonds and other fixed income securities will increase as interest rates fall and decrease as interest rates rise. Fixed income securities with longer maturities or duration generally are more sensitive to interest rate changes.
High yield securities (“junk bonds”) are subject to reduced creditworthiness of issuers, increased risk of default, and a more limited and less liquid secondary market. High yield securities may also be subject to greater price volatility and risk of loss of income and principal than higher-rated securities.
Mortgage-backed securities (MBS) and asset-backed securities (ABS) are subject to credit risk and interest rate risk and may also be subject to prepayment risk and extension risk. In addition, MBS and ABS may decline in value, become more volatile, face difficulties in valuation, or experience reduced liquidity due to changes in interest rates or general economic conditions. Certain MBS, such as collateralized mortgage obligations, real estate mortgage investment conduits, and stripped MBS may be more susceptible to these risks than other MBS.
Securities in the energy sector may be subject to price fluctuations due to various factors including real and perceived inflationary trends and political developments, the cost assumed in complying with environmental safety regulations, demand of energy fuels, energy conservation, the success of exploration projects, and governmental regulations.
Diversification may not protect against market risk.
The principal on a fixed income security may be prepaid prior to maturity, which may require reinvestment at a lower interest rate.
Longer-duration debt securities are more likely to decline in price than shorter duration debt securities in a rising interest rate environment.
The value of an investment will decline if there is a default by or a deterioration in the credit quality of the issuer or a provider of a credit enhancement or demand feature.
Liquidity risk is the possibility that securities cannot be readily sold within seven calendar days at approximately the price at which a portfolio has valued them. To the extent that a portfolio holds fixed income securities in smaller “odd lot” sizes, such positions may be less liquid and harder to sell. Odd lots may trade at lower prices than institutional round lot sizes, which may affect a portfolio’s ability to accurately value its investments.
Investments in collateralized loan obligations (CLOs) are subject to liquidity risk, interest rate risk, credit risk, prepayment risk, valuation risk, and the risk of default of the underlying asset, among others. The degree of such risk will generally correspond to the specific tranche in which an investment is made, with lower-rated CLO tranches often subordinate to higher-rated tranches in terms of payment priority and therefore subject to relatively greater risk.
Interest payments on inflation-indexed debt securities will vary as the principal and/or interest is adjusted for inflation.
Nothing presented should be construed as a recommendation to purchase or sell any security or follow any investment technique or strategy.
All third-party marks cited are the property of their respective owners.
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Investing involves risk including the possible loss of principal. The investment capabilities described in this website involve risks due, among other things, to the nature of the underlying investments. All examples herein are for illustrative purposes only and there can be no assurance that any particular investment objective will be realized or any investment strategy seeking to achieve such objective will be successful. Past performance is not a reliable indication of future performance.
Before acting on any information, you should consider the appropriateness of it having regard to your particular objectives, financial situation and needs and seek advice.
The fund or strategy is subject to liquidity risk, which is the risk that the fund or strategy’s investments cannot be readily sold within seven calendar days at approximately the price at which the fund or strategy has valued them.