We only manage fixed income assets in US portfolios. We invest in a diversified portfolio of high-quality, investment grade bonds, most commonly in the Government, Agency, and Corporate bond markets. We seek to add value through: tactical asset allocation decisions regarding the relative attractiveness of stocks and bonds; fixed income sector and duration decisions driven by our macroeconomic outlook; and by our strong fundamental knowledge of the financial position of investment grade corporate issuers.
On an ongoing basis, we search the bond markets for attractive opportunities that will help us meet the desired risk profile set in our macro policy, and we assemble the resulting securities into a fixed income model portfolio.
We assess the purpose for which the funds are being raised: sustainable purpose makes a bond interesting; undesirable purpose makes the bond uninteresting even if the issuer is otherwise positive.
Approximately 10% of our fixed income holdings are in 'green' bonds divided equally between corporate and state issuers.