Our Intermediate Government Credit 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 to accent yield while being neutral duration in an intermediate setting. 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 Intermediate Government Credit strategy:

• 50-70 investment grade fixed income securities
• Adjusted duration (typically) longer than intermediate benchmark index
• High average credit quality
• Higher yield (typically) to maturity than the intermediate benchmark index

Three major tenants guide our Intermediate Government Credit investment philosophy:

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

View detailed Intermediate Government Credit portfolio characteristics