Focused on competitive total return while seeking to minimize fundamental downside risks
Jennison has been managing fixed income portfolios for stable value clients since 1991. We believe that our investment approach can be suited to stable value clients. Since our firm’s fixed income investment strategy is based on adding value in the high quality sectors without employing interest rate anticipation, our portfolios tend to track their benchmarks closely. We do not have to change our investment approach to manage stable value accounts, and our results are typically characterized by low relative volatility with an objective of providing better yield/return than the benchmark.
We have managed stable value portfolios against many different benchmarks over the years.
- Bloomberg Barclays US Aggregate Bond Index
- Bloomberg Barclays US Intermediate Aggregate Bond Index
- Bloomberg Barclays US Intermediate Gov/Credit Bond Index
- Bloomberg Barclays US Intermediate Gov/Credit A+ Bond Index
- Bloomberg Barclays US Intermediate Government Bond Index
- Bloomberg Barclays US Gov/Credit 1-5 Year Bond Index
- Bloomberg Barclays US Gov/Credit 1-5 Year A+ Bond Index
- BofA Merrill Lynch 15+ Year US Treasury Index (G8O2)
- BofA Merrill Lynch 5-10 Year US Treasury Index (G6O2)
- BofA Merrill Lynch 1-10 Year US Treasury Index (G5O2)
- BofA Merrill Lynch 1-3 Year US Treasury Index (G1O2)
- BofA Merrill Lynch US Treasury Index (G0Q0)
- Custom Benchmarks
The objective of our Intermediate strategies is to provide desired alpha without taking fundamental risk. We only use investment grade securities and our portfolios generally have a higher quality profile than their benchmarks. Individual security selection drives our corporate, asset backed, agency, commercial mortgage-backed securities (CMBS) and collateralized mortgage obligation (CMO) sector management. We actively trade within each of these sectors. We manage pass-throughs based both on individual security analysis as well as the richness or cheapness of the sector as a whole. Portfolio durations are kept very close to benchmark durations. At extremes in yield curve shape, we will make moderate yield curve bets.
Our decision-making is based on the belief that investment values revert to the mean over time. This belief applies to yield spread and yield curve shapes. Because we use higher quality securities, we have confidence that such reversion will take place.
Eight portfolio managers are responsible for managing stable value fixed income accounts. We designate a lead portfolio manager and a back-up for each account. The lead manager is responsible for coordinating and implementing the team’s decisions for the individual accounts. The lead is also the key contact person for the client.
Meet the Team
Please remember that there are inherent risks involved with investing in the markets, and your investments may be worth more or less than your initial investment upon redemption. There is no guarantee that the investment managers’ objectives will be achieved. Professional money management is not suitable for all investors. The risks associated with investing include but are not limited to: derivative securities, which may carry market, credit, and liquidity risks; short sales, which involve costs and the risk of potentially unlimited losses; leveraging, which may magnify losses; high yield (“junk”) bonds, which are subject to greater market risks; small/mid cap stocks which may be subject to more erratic market movements than large cap stocks; foreign securities, which are subject to currency fluctuation and political uncertainty; real estate, which poses certain risks related to overall and specific economic conditions as well as risks related to individual property, credit and interest-rate fluctuations; and mortgage-backed securities, which are subject to prepayment and extension risks.
Thematic and concentrated portfolios may not be suitable for all investors. Such portfolios are non-diversified, so a loss resulting from a particular security will have greater impact on the portfolio’s return. Fixed income investments are subject to interest rate risk, and their value will decline as interest rates rise.
Your investment objectives, risk tolerance, and liquidity needs must be reviewed before suitable programs can be recommended. Asset allocation and diversification strategies do not assure a profit or protect against loss in declining markets. Investors should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation.
This web site is not intended as an offer or solicitation with respect to the purchase or sale of any security or other financial instrument or any investment management services.
The does not constitute investment advice and should not be used as the basis for any investment decision. There is no assurance that the strategy objectives as discussed will be met. Further, there is no assurance that any strategies, methods, sectors, or any investment programs herein were or will prove to be profitable, or that any investment recommendations or decisions we make in the future will be profitable for any investor or client.
These materials do not purport to provide any legal, tax or accounting advice.