Using a team approach, we design and implement portfolio construction through a disciplined allocation of resources focused on three areas of portfolio value: fundamental, relative and structural.
Fundamental Value
Since any investment, particularly a fixed income security, represents a series of cash flows owed to the portfolio, we look for assurance that those cash flows are sustainable, both in amount and timing. Our credit and structured products analysts make such judgments and capsulate their opinions in their official recommendations.
Relative Value
Relative value determination falls to the trading desk, where traders apply their knowledge of trading histories, inter-market spreads, dealer inventories, and end-user portfolios to find and execute the best price.
Structural Value
Portfolio managers are responsible for portfolio structure and ultimately determine how to construct and when to execute. This decision is based on the “best fit” for our client’s portfolio.
Factors that drive this decision include:
- The existing and desired duration exposure, yield curve positioning, credit posture and liquidity requirements
- Concentrations of risk by sector and sub-sector, cash flow and volatility exposures and relevant accounting effects
To learn more about Conning’s comprehensive investment services, please contact us.