The Core Plus Fixed Income investment strategy seeks a favorable long-term total return through income, while also giving special consideration to capital preservation. The strategy invests primarily in high-quality, investment-grade fixed income securities. In addition, the strategy invests in high-yield and emerging markets fixed-income securities in an effort to improve the strategy's total return.
The Core Plus Fixed Income team uses a detailed approach that emphasizes extensive credit research, yield-curve analysis and ongoing assessments of duration characteristics in an effort to identify undervalued market sectors and individual securities. A top-down macro-economic analysis enables the investment team to determine allocation between the core, high yield and emerging markets fixed income segments. The team carefully manages portfolio risk related to ratings downgrades and defaults by analyzing company financial statements, reviewing rating agency reports, and assessing industry trends on a quarterly basis.
Core Plus Fixed Income portfolios are subject to certain risks such as market and investment style risk. Fixed-income investments are subject to certain risks such as interest rate, inflation, and credit risks. High-yield fixed-income securities, also known as “junk bonds,” are considered speculative, involve greater risk for default and tend to be more volatile than investment-grade fixed-income securities. Investing in non-U.S. markets involves certain additional risks, including currency fluctuations and controls, restrictions on foreign investments, less governmental supervision and regulation, less liquidity, and the potential for market volatility and political instability. In addition, investing in emerging markets may involve relatively higher degrees of volatility.
This material is provided for the informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate.