Core Plus ETF Strategy
This ETF-only strategy leverages 22 years of research and fixed income expertise to re-imagine the way fixed income should be managed.
Benchmark: 100% Bloomberg US Aggregate Bond Index
Inception Date: 12/23/2020
“Go-anywhere” ETF-based fixed income allocation strategy that invests across fixed income market segments. Prioritization is total return with a secondary mandate of generating income. Managing within risk parameters will be a focus of our approach. Over time, and under normal market conditions, the portfolio should consistently be invested in a mix of quality/maturity/asset classes to pursue our objective. Strategic policy guidelines are in place to provide an additional layer of risk-management.
Asset Allocation Guidelines
The strategy’s allocation is based on a long-term neutral policy of 20-100% US Fixed Income, 0-50% Non-US Fixed Income and 0-30% cash.
Exposure guardrails are +/- 30% of benchmark weights for US fixed income sectors:
Strategic and Tactical
Top down and bottom-up research process to determine strategic and tactical direction of risk.
Cyclical vs. Defensive
High quality vs. low quality, credit vs. rates.
Relative and absolute duration targeting based on macro indicators, liquidity and rate cycles.
Fundamental and macro models to determine optimal asset class and region allocations.
Rich/Cheap analysis across maturities and asset classes based on fundamental and historical relative value analysis.
Quantitative techniques and scenario analysis to determine upside/downside.
Utilize 5-15 ETFs to achieve desired exposures
Maximize contribution from top-down macro-economic views
Minimize portfolio risk through asset class portfolio risk measurement
Minimize stock-specific risk through usage of ETFs
Manage overall portfolio risk by “x-raying” the underlying holding of the ETFs