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:

 
 
Capital at Risk: 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.

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.

 

This website is intended for Institutional and Professional Investors only.

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.

Additional considerations:
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.

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.

In the UK: The information contained herein is provided by PGIM, Inc., the principal asset management business of Prudential Financial, Inc. (PFI), Both Jennison, and PGIM are U.S. SEC registered investment advisers. Jennison is a wholly-owned subsidiary of PGIM, which is the principal asset management business of PFI, a company incorporated and with its principal place of business in the United States. PFI is not affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom.

PGIM Limited registered office: Grand Buildings, 1-3 Strand, Trafalgar Square, London, WC2N 5HR is authorised and regulated by the Financial Conduct Authority of the United Kingdom (registration number 193418) and duly passported in various jurisdictions in the EEA. These materials are issued to persons who are professional clients or eligible counterparties for the purposes of the Financial Conduct Authority’s Conduct of Business Sourcebook.

In certain countries in Asia, information is presented by PGIM Singapore, a Singapore investment manager registered with and licensed by the Monetary Authority of Singapore.

In Japan, information is presented by PIMJ, registered investment adviser with the Japanese Financial Services Agency.

In South Korea, information is presented by PGIM, Inc., which is licensed to provide discretionary investment management services directly to South Korean investors.

In Hong Kong, information is presented by representatives of PGIM (Hong Kong) Limited, a regulated entity with the Securities and Futures Commission in Hong Kong to professional investors as defined in Part 1 of Schedule 1 of the Securities and Futures Ordinance.