Fixed Income Strategy
This strategy seeks to generate above average yield with strict risk controls by consistently investing in those fixed income sectors that have strong risk-adjusted performance potential and eligible exchange traded fund representation. The portfolio is operated within a quantitative framework that seeks to objectively control the portfolio level yield, modified duration, and volatility.
The process starts with the collection of daily information of constituent sectors. This enables the close monitoring of the fixed income universe as it is represented within the ETF space. This information is then incorporated into the quantitative framework so that we can algorithmically control for both risk and yield. The framework is implemented as frequently as necessary in order to try to capitalize on investment opportunities as they arise; the framework is implemented no less than quarterly.
Providing Investment Solutions Through Flexibility
The Fixed Income Portfolio’s unconstrained investment approach may help provide solutions to a broad range of diversification needs. The trading efficiency afforded by ETFs allows the Innealta Investment Team to quickly and cost-effectively alter portfolio exposures to reflect the prevailing market climate.
As a core fixed income holding, the Innealta Fixed Income Portfolio provides a well-diversified base for which client-centric portfolios are built.
As a satellite to a client’s core fixed income holding, the Innealta Fixed Income Portfolio provides global diversification to the client’s overall fixed income allocation.