Investment Capabilities and Approach
Breckinridge offers multi-sector, sector-focused, and sustainable bond strategies in short, limited, intermediate, long and broad durations.
MULTI-SECTOR
Our multi-sector strategies invest across a variety of investment grade bond sectors.
These strategies are benchmarked against the Bloomberg Barclays U.S. Government/Credit or U.S. Aggregate Indexes. Each index has a variety of duration-based components that we use. Other benchmarks may be available upon request.
SECTOR-FOCUSED
Our sector-focused strategies invest predominately in municipal and Treasury bonds (or municipal, Treasury and other government). These strategies are benchmarked against Bloomberg Barclays Municipal Bond, Managed Money or Treasury Indexes. Each index has a variety of duration-based components that we use.
SUSTAINABLE
Our sustainable strategies emphasize ESG performance by targeting issuers with above average and/or improving ESG profiles. Values-aligned solutions are also available. Breckinridge’s sustainable strategies are available across most of our multi-sector and sector-focused strategies.
Our disciplined and consistent approach to investing is based on the following processes:
Top-Down Outlook
Our top-down outlook is determined by our Investment Committee. Chaired by our chief investment officer, the Committee is comprised of seven senior investment professionals who together average more than 20 years of investment industry experience. The members bring a diversity of views to our outlook from the perspectives of their roles in portfolio management and analysis, research, trading and investment strategy.
Rigorous Bottom-Up Research
Rigorous, bottom-up research is grounded in our view that the risks to investment grade bonds are asymmetrical and the downside to investing in a problematic security can be significant. The goal is to develop a comprehensive perspective on whether a bond can compensate investors for risk relative to return. Our research team uses proprietary credit algorithms, a risk-based credit matrix, and quantitative and qualitative data to generate internal ratings and opinions on a broad universe of investment grade issuers.
ESG Integration
ESG integration combines a quantitative assessment of ESG factors alongside a rigorous review of qualitative ESG considerations to derive a composite sustainability rating. Proprietary quantitative ESG frameworks draw on external data from a range of highly respected non-profit organizations, governmental agencies and sustainability ratings providers. Our qualitative ESG assessment is based on internal analysis, including engagement discussions with issuers.
Customizing Separate Accounts
Customizing separate accounts affords our investment teams significant flexibility in managing portfolios in accordance with long-term client objectives. Fixed income separate accounts allow investors to collect interest payments and hold bonds to maturity. Separate account investors can receive principal repayment in full and earn a predictable return no matter what broader market volatility might ensue. Investors in fixed income mutual funds do not have the same optionality.
Technology Innovations
Technology innovations allow our investment teams to efficiently manage client-centric customizations across a substantial client base. We align portfolios with each client’s objectives, risk tolerances and liquidity requirements and customize by benchmark, sector weightings, maturity and duration targets, minimum and average credit quality, tax-status, sector and security-level screens and values-aligned screens (e.g. fossil fuel free). Our proprietary technology enables high levels of customization at competitive fees.