Fixed Income

Fixed Income Capabilities

Our fixed income group has resided in the Boston area since it became part of Jennison Associates in 1975. The portfolio management team is comprised of a small, but highly seasoned group of investment professionals with broad expertise across the high quality market sectors in which we invest. Our mission for the fixed income accounts we manage is to provide top tier returns while using investment strategies that will do particularly well in difficult economic climates when our clients’ equity holdings and lower quality bonds are likely to underperform. Flowing directly from this mission, we have developed an investment style that seeks to provide competitive alpha while minimizing fundamental risk within the portfolio. Our high quality style has provided good diversification within multi-manager fixed income portfolios.

We work with our clients to develop investment guidelines that convey the expected outperformance and tolerated levels of risk. We have extensive experience working with clients employing multiple benchmarks over long periods of time. Many of our clients have changed benchmarks as the needs of their plans have changed and we have worked with them to restructure their portfolios into new mandates. With many clients we have acted as quasi-consultants, advising on asset/liability strategies, constructing customized benchmarks, and analyzing funded status over various investment scenarios.
 

Our fixed income capabilities include:

Fixed Income Philosophy and Process

Objective

  • Top quartile returns
  • Minimize downside risk

Fundamental Strategy Underpinnings

  • Favor high quality securities
  • Expect reversion of investment value to mean
  • Duration neutral
  • Blend rigorous quantitative analysis with common sense

Potential Sources of Added Value

  • Yield Curve Structure
  • Sector Rotation
  • Bottom-Up Security Selection

 

Fixed Income Portfolio Management Team

All of our portfolios are managed on a team basis by our fixed income portfolio managers. Sector specialists generate ideas within their areas of expertise and then compare these to relative value in other market segments. The decision making process is consensus oriented with the team scrutinizing and challenging investment ideas across the sectors. We believe this close and constant interaction among our sector managers is a key competitive advantage allowing us to make faster and better cross sector decisions.

We don’t distinguish between the terms analyst and portfolio manager in terms of individuals. All of our portfolio managers are analysts of some sort, and vice versa. We believe that having very senior, experienced individuals doing both the analysis of securities and the investment in those securities is the best way to ensure that good decisions are made.