Active Fixed Income

Philosophy

Fort Washington Investment Advisors active fixed income strategy uses a detailed risk budget methodology that enables our sector specialists to evaluate potential sources of risk and return for the major segments of the fixed income market, including high yield and other non-index securities. The appropriate alignment of this risk and return provides the most favorable opportunity to outperform over a full market cycle.

Process

Fort Washington Investment Advisors 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 thematic areas:

• Duration management
• Sector allocation
• Yield curve positioning
• Security selection

Our team's approach is to analyze the current economic outlook and fundamental trends in the marketplace. From this analysis, we create a risk budget and determine an allocation of assets to the four themes. Our 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

Our active fixed income strategy 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.