Investment Process
Most of our active management focuses on individual security selection and sector diversification. To select individual securities we use a fundamental, quantitative analysis of relative value that calculates the "true economic value" of securities. The securities that represent the best relative values and comply with clients’ investment guidelines may then be purchased. Conversely, securities that do not represent fair relative values will be considered for sale. This valuation process ensures that we constantly monitor new ideas and existing holdings, and maximize relative performance.

We base sector emphasis on a combination of bottom-up and top-down factors. We maintain strategic ranges to ensure that portfolios are well diversified. Our research and investment experience reinforces our belief that a strategic allocation across all spread sectors in a broad market mandate enhances returns while reducing risk. Sector emphasis is a result of the investment process rather than a target. This bottom-up approach to actively managing portfolios is a crucial element in adding value over the long term.

Investment Universe
This strategy invests in U.S. Government securities including U.S. Treasuries, agencies and mortgage-backed securities backed by U.S. agencies. Performance is typically measured against the Bank of America Merrill Lynch 1-3 Year U.S. Treasury/Agency Index with the overall duration generally kept between +/-10% of the duration of the benchmark.