The objective of our Investment Grade fixed income discipline is to enhance portfolio return over time without incurring excessive portfolio risk. Newfleet blends top down macro-economic analysis with bottom up credit and structural research to build portfolios with superior performance characteristics. The portfolio average quality is typically rated "A" or better.
Value is added in four ways: sector rotation, issue selection, interest rate anticipation, and trading opportunities. Portfolios target the benchmark duration plus or minus 25%. Top down research features traditional economic research as well as geopolitical, and regulatory analysis. Security selection encompasses a broad spectrum of investment grade debt obligations, including U.S. and non-US corporate bonds, securitized debt and government securities. From a bottom up perspective, emphasis is placed on a security's credit fundamentals, relative value, and risk characteristics, rather than it's weighting in the benchmark.