Core Plus 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 focuses on fundamentals, 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 strategy, duration, and allocation. An active duration management approach is taken to position the portfolio short or long the duration benchmark, as well as along the curve. 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 government, structured, and corporate credits. Many of the same factors used in duration analysis are used in the allocation process.

AUIM's most valuable attribute is the result of our rigorous approach to asset allocation and independent bottom-up credit research. Our Core Plus portfolio management style uses fundamental and credit research to capitalize on misvaluations in the least efficient portions of the fixed income markets. The investment focus is on bonds where potential for credit improvement is not reflected in current valuations. Strategies in security selection, sector weightings, duration, and term structure management are all critical to generating excess returns. The portfolios are managed from a long-term perspective with focus on delivering consistent and competitive risk adjusted returns over complete economic cycles.

Simultaneously, we follow a rigorous bottom-up research process to evaluate securities and sectors to round out the portfolio construction process. For structured products, we focus on securities with superior and predictable collateral, and 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. Top-down and bottom-up information is shared amongst our global partners, and between fixed income asset classes to fully leverage resources and provide optimal value to our clients. We strive to exploit inherent inefficiencies of the market and outperform the benchmark over a full market cycle.

Key Facts

$859 million USD

Strategy AUM

$114 billion USD

Firm AUM

Strategy Objective

To provide a high total return through a combination of current income and capital appreciation. The Composite is compared to Barclays U.S Aggregate Bond Index.

As of 3/31/2017

Core Plus 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 division of the Aegon Group.