Top-Down, Macro Approach
Analyze macroeconomic conditions to correctly identify duration and spread sector allocations through the market cycle.
Brandywine Global U.S. Fixed Income Strategy
Strategy Overview
The strategy adds value through active U.S. Treasury duration management and opportunistic shifts to corporate credit. It also is a compelling alternative to traditional core plus approaches that overutilize credit and underutilize duration management which may lead to outcomes that are suboptimal from an asset allocation utility standpoint.
Active U.S. Treasury Duration Management
Treasury allocations are determined by valuation relative to the business cycle, as well as consumer, business, and credit conditions.
Opportunistic Shifts to Corporate Credit
Trigger-based allocations to investment-grade corporate credit only in response to significant spread-widening events.
High, Differentiated, and Defensive Alpha
Low correlation to spread markets and low to negative correlation to equities typically allows the strategy to exhibit positive returns and outperform both the benchmark and peer group during major equity drawdown events.
Our Philosophy
This value-based strategy is guided by the broad investment themes of our Global Fixed Income team with the goal of maximizing total return while meeting our primary objective of capital preservation. To avoid the inefficiencies of multi-sector U.S. bond benchmarks, the team takes a benchmark-agnostic approach that limits investment to only the few sectors and issues considered most attractive.
Our Investment Process
The U.S. Fixed Income strategy employs two levers to ultimately construct and manage the portfolio. Our first lever, sector allocation, is driven by our aforementioned global macro themes. When we encounter a fixed income sector, such as U.S. Corporates or Treasuries, or bonds with superior risk/return profiles and when conditions are ideal, we will create a significant overweight within our guideline parameters. Our second lever, duration management, involves managing the interest rate exposure of the portfolio based upon the stages of the global business cycle.
Management Team
Jack P. McIntyre, CFA Portfolio Manager
Industry since: 1987
Anujeet Sareen, CFA Portfolio Manager
Industry since: 1994
Brian L. Kloss, JD, CPA Portfolio Manager
Industry since: 1995
Tracy Chen, CFA, CAIA Portfolio Manager
Industry since: 2002
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WHAT OUR MANAGERS THINK
