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Fixed Income Investments

Core Plus

Philosophy

We believe that fixed income markets tend to be largely efficient in aggregate given the large number of investors active across various segments. At the same time, the wide variety of those investors can create pockets of inefficiency, whether structural or at the security level, that provide relative value to investors able to find them. In order to remain focused on these inefficiencies, we have devoted considerable resources to building and constantly enhancing our own analytics in order to identify and analyze the most compelling opportunities


Process

The foundation of our investment process is our team structure. Specialized, integrated teams of experienced professionals focus on portfolio management, research and trading within their market sectors. Vigorous interaction among teams ensures consistent total portfolios. The senior portfolio management team provides strategic oversight and integration.

Our teams use a framework of proprietary valuation models of primary market characteristics, and other information such as economic fundamentals, politics, demographics, and market flows to form an outlook on major strategic factors, including the level of interest rates, the yield curve and sector valuations. In implementing the strategic outlook, our teams select securities mainly using internal research and analytics and intensively monitoring markets for distressed valuations.

DuPont Capital Core Plus Fixed Income employs multiple strategies to diversify risk. We control risk with limits on duration, sector and quality weights, and security weights. Risk limits are derived from client guidelines and benchmark characteristics.