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Traditional Strategies |
PRINTER FRIENDLY |
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TCW MetWest’s traditional strategies invest in all major domestic fixed income sectors, including government, corporate, mortgage-backed and asset-backed securities. Value is added through a combination of duration, yield curve, sector, security, trading and execution strategies. In some cases, various futures and/or swap contracts are utilized to gain exposure along the yield curve or to hedge positions.
Our traditional strategies control interest rate risk by constraining average duration exposure to within one year of the average duration of the respective benchmark and generally within one-half year. The typical average credit quality of TCW MetWest's traditional portfolio is AA. TCW MetWest offers four traditional strategies for institutional investors: Our Ultra Short Fixed Income strategy seeks to consistently outperform the Merrill Lynch 1-Year U.S. Treasury Index, while maintaining overall risk similar to the index. In Ultra Short portfolios we typically maintain an average duration of less than one year. The Low Duration Fixed Income strategy seeks to consistently outperform the Merrill Lynch 1-3 Year U.S. Treasury Index, while maintaining overall risk similar to the index. Duration for the portfolio will average between 1 and 3 years. The objective of the Intermediate Fixed Income strategy is to consistently outperform the Barclays CapitalIntermediate Government/Credit Index, while maintaining overall risk similar to the index. Typical duration for an Intermediate portfolio is between 2 and 4.5 years. Our Core Fixed Income, Constrained Core Fixed Income, Core Plus Fixed Income, and Opportunistic Core Plus Fixed Income strategies seek to consistently outperform the Barclays Capital Aggregate Index, while maintaining overall risk similar to the index. A Core portfolio will typically maintain an average duration of between 3 and 6 years. |
