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| institutional asset management > fixed income > core fixed income |
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Philosophy Fort Washington Core Fixed Income uses a detailed risk budget methodology that enables specialists to precisely evaluate potential sources of risk and return for the major segments of the fixed income market. The appropriate alignment of this risk and return provides the most favorable opportunity to outperform over a full market cycle. Process Fort Washington employs a disciplined investment process designed to maximize risk-adjusted returns. Careful examination of the fixed income markets helps us discover relative value opportunities over the short-term in four areas. Those themes include duration management, sector allocation, yield curve positioning and security selection. First, we analyze the current economic outlook and fundamental trends in the marketplace. From this analysis, we create a risk budget, determining an allocation of assets to the four themes. Dedicated sector specialists and analysts evaluate opportunities in each asset class to determine the optimal mix of securities within that sector. Criteria for security selection include credit analysis, security structure, liquidity, volatility, risk-adjusted return expectations, and yield curve analysis. Objective Fort Washington's Core Fixed Income seeks to outperform its benchmark over a full market cycle by utilizing multiple strategies opportunistically. We believe that the volatility of market segments allows us to capture the best possible risk-return scenario. |
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