Insurance Crossover

Product Description

An actively managed portfolio of both taxable and tax-exempt investment grade securities, with exposure to the major sectors of the fixed income market including Treasuries, Agencies, municipals, investment-grade corporate and asset-backed securities, mortgages, and inflation-indexed securities. The balance of taxable/tax-exempt securities is driven by the client’s underwriting gains or losses, taxes, and relative value opportunities in the marketplace.

Objective

Seeks to maximize after-tax income. The underlying portfolios are managed in a tax-efficient manner with careful consideration given to the avoidance of AMT. Additional client-specific constraints frequently include the level of portfolio turnover and the accounting classification of portfolio holdings.

The strategy is designed to exploit relative value opportunities between various taxable and tax-exempt sectors and target ideal spots on the yield curve to take advantage of superior risk-adjusted return potential.

Risk Management

Portfolio risk is systematically measured and budgeted across all portfolio decisions (credit, yield curve, duration, liquidity, etc.) based on our forecast confidence, return and risk expectations, and experience. No single decision dominates the contribution to risk or return.

Factsheet

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