Passive Fixed Income Strategies
The strategies seek to replicate the total return of their respective indexes. They principally invest in a diversified portfolio of fixed income securities designed to replicate the performance and risk characteristics of the index each is managed to. They systematically combine risk models, trading cost projections and other inputs to optimize an investable bond portfolio, targeting a low tracking error to each benchmark.
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Separate Account
- U.S. Passive Treasury Bond
Competitive advantages
The Remi engine
The team’s systematic investment engine, Remi, supports multi-asset, customized, tax-managed solutions and portfolio optimization.
Systematic implementation
A factor-based systematic process provides a robust framework to deliver customized solutions for clients targeting specific outcomes.
Risk management
The team’s independent risk management provides a consistent, unbiased framework for evaluating risks and exposures within a portfolio.
A factor-based, systematic process of predict-decide-learn
The team philosophy is to leverage a continuous and repeatable process of predict-decide-learn to deliver differentiated investment solutions to clients.
Key risks
Market risk: Security markets are volatile and may decline significantly in response to adverse issuer, regulatory, political, or economic developments with different sectors of the market and different security types reacting differently to such developments.
Debt securities risk: Debt securities are subject to both credit and interest rate risk. Credit risk is the possibility that the issuer or guarantor of a debt security may be unable, or perceived to be unable or unwilling, to pay interest or repay principal when they become due, and credit risk increases as an issuer’s credit quality or financial strength declines. Interest rate risk is the possibility that interest rates will change over time such that when interest rates rise, the value of debt securities tends to fall and the longer the terms of the debt securities held the greater the impact of this risk.
High yield risk: If a strategy invests in high yield securities (commonly known as junk bonds), these securities are considered speculative and have a much greater risk of default or of not returning principal and their values tend to be more volatile than higher-rated securities with similar maturities.
Foreign securities risk: If a strategy invests in the securities of non-U.S. issuers, these investments may be subject to lower liquidity, greater price volatility, and risks related to adverse political, regulatory, market, or economic developments and may be affected by changes in foreign currency exchange rates.
Investors should know that this strategy deployed may be subject to additional investment risks. For important information about the investment manager, please refer to Form ADV Part 2.
