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 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.

 

This website is intended for Institutional and Professional Investors only. All investments involve risk, including the possible loss of capital.

Important Disclosures

Jennison Associates is a registered investment advisor and a Prudential Financial company. Jennison Associates LLC has not been licensed or registered to provide investment services in any jurisdiction outside the United States. Certain investment vehicles are distributed or offered through Prudential Investment Management Services LLC (also a Prudential Financial Company) or other affiliated entities. Additionally, vehicles may not be registered or available for investment in all jurisdictions.

Please click on this disclosure link for important information, including information on non-US jurisdictions.

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. It does not constitute investment advice, should not be used as the basis for any investment decision, and does not purport to provide any legal, tax or accounting advice. This is for informational and educational purposes only and should not be construed as investment advice or an offer or solicitation in respect of any products or services to any persons who are prohibited from receiving such information under the laws applicable to their place of citizenship, domicile or residence.

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.

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. 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. Professional money management is not suitable for all investors.

Links to third-party sites are intended for informational purposes only and should not be considered investment advice or recommendation to invest. These links do not constitute endorsement or confirm their accuracy, and we are not responsible for any third-party guidelines, security, or accuracy of information.