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Provided by FIAM LLC, a registered investment adviser.
FIAM STRATEGIES
FIAM Tactical Bond
Seeks to provide an attractive combination of current income and capital appreciation using a flexible management approach to allocate assets across the full spectrum of the debt markets.
Investment philosophy and approach
The investment team seeks to generate competitive returns, while maintaining bond-like volatility, from asset allocation, sector rotation, security selection, duration management, yield-curve positioning, and foreign currency exposures. Our philosophy and approach:
Dynamic multi-sector approach
Employs a dynamic multi-sector approach to utilize the entire opportunity set of global fixed income sectors.
Optimizes risk-adjusted returns
Optimizes risk-adjusted returns by continuously evaluating risk based on historical and expected.
Maintains adequate levels of liquidity
Maintains adequate levels of liquidity to take advantage of opportunities and mitigate downside risk
Leveraging a long history of fixed income asset allocation
Inception Date: Jan 31, 2006
| Characteristics | |
| Universe | Global investment-grade and non-investment grade fixed income sectors and securities |
| Potential Sources of Return | Asset allocation, sector rotation, security selection, yield curve, foreign currency |
| Targeted duration range | Flexible |
| Targeted volatility (standard deviation) | 3.0–6.0% annualized over a market cycle |
| Targeted non-investment-grade exposure | 0–70% |
| Average non-investment-grade exposure since inception | 30–40% |
Representative account information shown. As of 3/31/24.
Expected ranges are subject to review and change by a multi-disciplinary team including the CIO. Target volatility is presented gross of any fees and expenses, including advisory fees, which when deducted will reduce returns. Although FIAM believes it has a reasonable basis for any target, there can be no assurance that actual results will be comparable. Actual results will depend on market conditions over a full market cycle and any developments that may affect these investments and will be reduced by the deduction of any fees and expenses associated with the investment.
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Past performance is no guarantee of future results. An investment may be risky, may fluctuate in value, and may not be suitable for all investors.
This strategy’s performance will change daily based on changes in interest rates and market conditions and in response to other economic, political or financial developments. Debt securities are sensitive to changes in interest rates depending on their maturity, and may involve the risk that their prices may decline if interest rates rise or, conversely, if interest rates decline, their prices may increase. Debt securities carry the risk of default, prepayment risk and inflation risk. Changes specific to an issuer, which may involve its financial condition or economic environment, can affect the credit quality or value of an issuer’s securities. Lower-quality debt securities (those of less than investment grade quality, also referred to as high yield debt securities) and certain types of other securities are more volatile and are often considered to be speculative and involve greater risk due to increased sensitivity to adverse issuer, political, regulatory and market developments, especially in periods of general economic difficulty. The value of mortgage securities may change due to shifts in the market’s perception of issuers and changes in interest rates, regulatory or tax changes.
Derivatives may be volatile and involve significant risk, such as credit risk, currency risk, leverage risk, counterparty risk and liquidity risk. Using derivatives can disproportionately increase losses and reduce opportunities for gains in certain circumstances. Investments in derivatives may have limited liquidity and may be harder to value, especially in declining markets.
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