Core Aggregate Fixed Income

Investment Strategy

At AUIM, we manage portfolios under a uniform investment approach driven by a seasoned group of investment and risk management professionals. Performing in a team-oriented environment, we focus on fundamentals, sentiment and positioning, technicals, and valuation throughout each step of the investment process. We begin our investment process with emphasis on top-down factors that have significant impact on performance of the portfolio strategy, duration, and allocation. An active duration management approach is taken to position the portfolio short or long the duration benchmark, as well as curve and convexity positioning. Concentration is given to monetary policy, fiscal policy, geopolitical environment, and inflation expectations, as well as sentiment and technical factors. Considerable effort is taken to position the portfolio optimally between governments, structured, and corporate credits. The asset allocation process includes many of the same factors previously mentioned, in addition to secular trends such as demographic changes, regulation, taxes, and the corporate growth outlook.

AUIM's most valuable attribute is the result of our rigorous approach to asset allocation and independent bottom-up credit research. We strive to exploit inherent inefficiencies of the market and outperform the benchmark over a full market cycle. Investment focus is on bonds with potential for credit improvement that is not reflected in current valuations. Strategies in security selection, sector weightings, duration, and term structure management are critical to generating excess returns.

Simultaneously, a rigorous bottom-up research process is used to evaluate securities to round out the portfolio construction process. For structured products, we focus on securities with superior and predictable collateral, along with transparent and robust structures. Further, we conduct proprietary and intensive modeling and stress testing for principal protection and performance. Loan underwriter, servicer, and issuer track records are closely scrutinized. Both top-down and bottom-up information is shared amongst our global partners and between different fixed income asset classes to fully leverage resources and provide optimal value to our clients.

Key Facts

$4,712 million USD

Strategy AUM

$106 billion USD

Firm AUM

Strategy Objective

To consistently outperform the Barclays U.S. Aggregate Index throughout the credit cycle.

As of 9/30/2017

Core Aggregate Fixed Income Institutional Fact Sheet

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Composite Disclosures

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Portfolio Management Bios

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Aegon USA Investment Management, LLC, (AUIM) is a U.S.-based investment adviser registered with the Securities and Exchange Commission (SEC) and a member company of Aegon Asset Management, the global investment management brand of the Aegon Group.