Portfolio Construction

Portfolios are constructed with high-quality; U.S. dollar-denominated securities rated investment grade or better at time of purchase. Primary consideration is given to numerous and diverse value-adding opportunities using duration management, yield curve positioning, sector allocation and security selection. We can and do make major shifts in our sector allocations to take advantage of short-term market conditions. Duration is closely monitored but not restricted to the benchmark. We believe this allows us to take advantage of opportunities while managing volatility. No single non-government security will be more than 5 percent of the portfolio value at the time of purchase.

Portfolio Characteristics

Inception DateJanuary 1, 2003
Assets Under Management (in millions)$160.40
Investment StyleCore - Specialized
Decision MakingOpportunistic
BenchmarkBarclays U.S. Aggregate Bond Index

Portfolio Statistics as of 12/31/19

Strategic Fixed IncomeBarclays U.S. Aggregate Bond Index
Average Credit QualityAa1Aa1
Duration6.0 yrs5.9 yrs
Current Yield3.0%3.0%
Number of Holdings7511037

Sector Diversification as of 12/31/19

Strategic Fixed IncomeBarclays U.S. Aggregate Bond Index
Governments45.4041.10
Asset-Backed6.000.50
Mortgage-Backed34.5029.30
Corporates5.9028.40
Taxable Municipals2.800.80
Cash5.400.00