Skip to navigation

Multi-Sector Absolute Return Strategy

  1. Investment Principles
  2. Investment Process

Investment Principles Multi-Sector Investment Principles

Our Multi-Sector Absolute Return Strategy utilizes an actively managed, opportunistic and duration flexible approach that strategically manages and tactically allocates to:

  • Investment Grade U.S. Corporate Bonds
  • High Yield U.S. Corporate Bonds
  • Leveraged Loans
  • Non-U.S. Bonds

The allocation decision and review are based on an analysis of macroeconomic and microeconomic themes and an assessment of the relative value of each sector.

MACRO THEMES
  • Broad economic trends
  • Business / credit cycle analysis
  • Federal Reserve policy
  • Interest rates / inflation
MICRO THEMES
  • Sector trends
  • Industry dynamics
  • Quality spreads
  • Supply / demand
  • Volatility / liquidity
PORTFOLIO CONSTRUCTION
  • Target sector weights
  • Sector allocation
  • Industry focus
  • Quality breakdown
  • Senior vs. subordinate
  • Yield curve positioning
  • Liquidity preference

The targeted return objective for our Multi-Sector Absolute Return Strategy is LIBOR +500 basis points. Past performance is not indicative of future results.

Investment Process

The Investment Process for the Multi-Sector Absolute Return Strategy is driven by the Multi-Sector portfolio management team, led by Jim Keegan, Chief Investment Officer, after reviewing the findings of our Investment Policy Group (IPG). The IPG consists of the sector team leaders in each of the major asset classes. The group's decisions arise from a series of discussions, both formal and informal, between members of the IPG and their respective research professionals. The Multi-Sector Absolute Return Strategy portfolio managers have a formal monthly meeting during which the emphasis among the sectors is determined and the analyses of the IPG are synthesized.

The IPG process consists of:

Market Review Meeting - An informal daily market briefing with the Chief Investment Officer, senior portfolio managers, analysts and traders to review current developments within their areas of expertise.

Weekly IPG Meeting - Meets at least weekly to discuss strategy. Target allocations are determined as a result of these meetings.

Credit Team Meetings - Our best ideas flow from the two-way communication between analysts and senior portfolio managers, on both a formal and informal basis. We frequently contrast opposing opinions on a specific security or industry. The fundamental research prepared by our experienced analysts in recommending sound credits supports the relative value decisions made by our seasoned management team.

Monthly MSAR Meetings - Meets monthly to deliberate tactical issues that pertain to the Multi-Sector Absolute Return Strategy.

IPG Process

Multi-Sector Absolute Return Strategy sector allocation ranges can be customized to meet a client’s preference. Examples of sector allocation ranges are:  

Investment Grade Bonds

40% to 60%

High Yield Bonds & Leveraged Loans    

20% to 80%

 

Investment Grade - Broad Market

Interested in Broad Market Investment Grade Strategies? Learn More.