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ACCESS CAPITAL COMMUNITY INVESTMENT STRATEGY |
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Investment Process
Our risk-controlled investment process is grounded in the belief that the role of fixed income investing is to produce sustainable income while maintaining the stability of principal. Our active management focuses on individual security selection. Investment ideas originate from two sources:
• Fixed income portfolio managers and analysts who are members of
specialized teams responsible for idea generation, and
• Originators, brokers, and other intermediaries we work directly with to
identify loans that may be candidates for securitization.
We make independent determinations of the credit-worthiness of each bond we hold, and emphasize rigorous analyst underwriting through fundamental research and valuation.
Our research and experience reinforce our belief that strategic allocation across available spread sectors enhances returns while reducing risk. Credit and structural risk is monitored in all non-Treasury sectors of the fixed income market on a daily basis. Our investment professionals also conduct ongoing surveillance of credit risk and discuss performance, rating actions, other material events, and their potential impacts on portfolio holdings.
Investment Universe
The minimum credit quality of the strategy is AAA (subject to client guidelines). Most of the holdings in the portfolio are U.S. Government Agency securities and securities backed by the full faith and credit of the U.S. Government. Performance is typically measured against a blended benchmark of 80% of the Merrill Lynch 30-Year Mortgage Index and 20% of the Merrill Lynch 1-10 Year Treasury Index. This benchmark generally has a high degree of correlation with the Lehman Aggregate Bond Index. We maintain a fairly neutral duration (+/-10%) relative to the benchmark.
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