Our Core Total Return strategy emphasizes active management utilizing sector rotation, yield curve management and security selection. This approach is designed to capture the bulk of the excess returns available in the market, while minimizing the variability of those returns.

In addition, we actively manage portfolios while maintaining a neutral duration stance. We believe this emphasis on yield will dominate returns through time while risk is minimized through neutral duration management.

To learn more about neutral duration fixed income management, please read the Q&A with our fixed income team.

Key features of the Core Total Return strategy:

• 50-70 investment grade fixed income securities
• Adjusted duration in line with the Lehman Aggregate index
• High average credit quality
• Higher yield (typically) to maturity than the Lehman Aggregate index

Three major tenants guide our Core Total Return investment philosophy:

• Neutral duration strategy
• Sector rotation emphasizing yield-enhanced sectors
• Security selection made according to relative value opportunities

View detailed Core Total Return portfolio characteristics