Core Fixed Income

The goal of our Core Fixed Income strategy is to perform better than the Bloomberg Barclays US Aggregate benchmark over time and through time. Since the fixed income portion of a portfolio also serves as a risk diversifier to volatility we believe it is essential to provide consistent returns each and every year. We seek a high batting average of success without incurring unnecessary risks in the portfolio or making bets. Over time we expect to deliver excess returns with comparable overall volatility to the market, and greater downside risk protection during difficult market periods.
Decoration
Our primary objective across all duration mandates is to outperform the market with comparable volatility by utilizing our proprietary and unique Quality Yield approach and the deep experience and continuity of our investment team.
Johnson believes that bonds should behave like bonds, especially during periods of economic and market stress. We also believe that the consistent compounding of income drives returns in the bond market. As a result, our strategy employs a quality yield approach.
The cornerstones of our approach are to emphasize investment grade, non-government securities and capture the slope of the yield curve, focusing on building portfolios with a sustainable yield advantage over the benchmark. Investment decisions are made with respect to sector allocation, maturity structure and issue selection that capture the relative value of the bond market for client portfolios.
  • Benchmark: Bloomberg Barclays US Aggregate
  • 100% investment grade securities
  • Duration between 80% - 120% of benchmark (110% normal)
  • Diversification by sector, issuer and maturity
  • Expected annual turnover between 20%-40%
  • Typical portfolio holds between 60-80 securities
  • No derivatives, no junk, no foreign currency exposure
  • No interest rate speculation

Performance

Performance

Portfolio Statistics

Portfolio Statistics

Duration Distribution

Duration Distribution