U.S. Fixed Income Strategies

US Fixed Income strategies at Amundi Smith Breeden:

  • Core
  • Investment Grade Corporate Credit
  • Agency MBS
  • High Credit Quality Short Duration

The Core Strategies seek to add value relative to a broad market index such as the Bloomberg Barclays US Aggregate by focusing on bond selection and sector rotation with limited duration exposure relative to the benchmark.

                         

                              

                       

                       

The Core bond portfolios will typically hold lower allocations to government bonds and higher allocations to the non-government sectors (corporate bonds, agency MBS, commercial MBS, asset-backed securities and non-agency MBS) relative to the Bloomberg Barclays US Aggregate index. This is for two reasons (1) The non-government sectors offer a yield spread advantage that is typically significant even after adjusting for credit and prepayment risk  (2) The greater variety of securities in the non-government sectors provides greater opportunities for adding value through identifying undervalued and overvalued securities. The Core strategies are appropriate for investors seeking actively managed broad U.S. high quality fixed income exposure.  

Tim Rowe

Senior Portfolio Manager

31 years of Industry Experience
28 years at Amundi Smith Breeden 

Timothy Rowe is a Managing Director and Senior Portfolio Manager at Amundi Smith Breeden LLC. Mr. Rowe is the lead portfolio manager for U.S. core bond portfolios and has managed core portfolios since 1994.  Before joining the firm in 1988, Mr. Rowe was an Assistant Economist at the Federal Reserve Bank of Richmond, Virginia. He holds a Master of Business Administration with specialization in Finance from the University of Chicago Booth School of Business and a Bachelor of Arts in Economics and History from Duke University.

Overview

  • Low exposure to macro factor risk (duration, curve, volatility)
  • Duration limits +/- 0.5 versus the benchmark
  • Focus on investment grade securities
  • Leverage is generally prohibited, or if permitted, not greater than 1.1 times capital

Why Amundi Smith Breeden?

  • We offer flexibility to meet client needs.  We manage a variety of Core strategies, including investment grade and core plus strategies.  Our investment process allows us to manage to custom guidelines and objectives.
  • The lead Portfolio Manager has managed the Core strategies since inception (1994). He is supported by sector teams covering all the sectors in the investment  universe.  
  • A decisive and nimble portfolio management process allows Amundi Smith Breeden to take advantage of market opportunities that are too small for larger U.S. fixed income managers.
  • Amundi Smith Breeden focuses on security selection and sector rotation, which we expect to provide more consistent excess returns than more macro/”top-down” strategies.

Data as of March 31, 2017. The strategy webpage includes targeted returns that are based on a variety of factors and assumptions and involve significant elements of subjective judgment and analysis. Factors considered in estimating target returns include the following:

Current and expected market conditions, expected composition of the portfolio and the benchmark, and expected returns from security selection, sector rotation and yield curve positioning.

Amundi Smith Breeden cannot guarantee the success of the investment strategy. Past results are not necessarily indicative of future performance. No assurance can be made that profits will be achieved or that substantial losses will not be incurred. All investments involve risk including the loss of principal.