We believe the key to controlling risk while achieving competitive returns from fixed income securities lies in investing in high quality, highly liquid securities. Duff & Phelps' focus on high quality investments has resulted in a relatively low-turnover process.
Our investment grade fixed income process encompasses the full range of fixed income sectors – treasuries, agencies, residential mortgage-backed securities ("MBS"), commercial mortgage-backed securities ("CMBS"), asset-backed securities ("ABS"), corporate bonds and both taxable and tax-exempt municipal bonds.
We believe that the most effective way to provide incremental value for a fixed income portfolio is to seek relative value opportunities while consistently managing the portfolio's exposure to a variety of risks, utilizing both qualitative and quantitative analytical tools. We manage portfolios for relative duration, yield curve distribution and sector allocations versus a given benchmark while pursuing a moderate-turnover approach of active management of investment grade securities.