Fixed Income
Reinhart Limited Duration
Strategy Overview
Reinhart Limited Duration is a high-quality, actively managed bond strategy with the goal of providing superior yields and returns while minimizing volatility and default risk. To pursue our goals, we emphasize high-quality securities through a duration-constrained approach. The strategy invests in U.S. Treasuries, primarily “A” or better corporate bonds, and mortgage and asset-backed securities with maturities of five years or less.
Key Facts
| Benchmark | ICE BofA 1-5 Year U.S. Corporate/Government Bond Index |
|---|---|
| Strategy Inception | January 1998 |
| Investment Vehicles | Separate Account |
| Investable Securities | U.S. Treasury U.S. Agency & Mortgage-Backed Securities Primarily “A” or better rated U.S. Corporate Bonds AAA rated Asset Backed Securities |
| Average Duration | Usually within 10% of the benchmark index |
Experienced Management
Peter Altobelli, CFA®
Portfolio Manager, Credit Analyst
Michael Wachter, CFA®
Co-Head of Reinhart Fixed Income, Portfolio Manager
Quality, Stability, and Predictability
Investment Philosophy & Approach
We view fixed income management as being first and foremost about risk management. Fixed Income investors face four main risks. We seek to contain the level of these risks in order to preserve capital and only increase these exposures when investors are adequately compensated by the markets for taking them.
Conservative Credit Allocation and High Quality
Adjust credit allocation with market conditions, always using mostly “A” rated or better issuers.
Duration Constrained
Portfolio duration is typically within 10% of the benchmark index.
Well Structured
Predictable cash flows at the portfolio and security levels.
Highly Liquid
Invest in highly liquid bonds primarily from large issuers with multiple securities across the yield curve.
Reinhart Fixed Income Team
William Ford, CFA®
Co-Head of Reinhart Fixed Income, Portfolio Manager
Michael Wachter, CFA®
Co-Head of Reinhart Fixed Income, Portfolio Manager
Peter Altobelli, CFA®
Portfolio Manager, Credit Analyst
Katherine Doyle
Portfolio Manager, Credit Analyst
Douglas Fry, CFA®
Portfolio Manager
Ajla Kavazovic
Credit Analyst
Adam Lynch
Portfolio Manager, Credit Analyst
Sarah Molitor, CFA®
Portfolio Manager, Credit Analyst
Andrew Scargill
Fixed Income Associate
Matt Stoner
Credit Analyst
Related Insights
In addition to the ongoing market risk applicable to portfolio securities, bonds are subject to interest rate risk, credit risk and inflation risk. When interest rates rise, bond prices fall; generally, the longer a bond’s maturity, the more sensitive it is to this risk. Credit risk is the possibility that the issuer of a security will be unable to make interest payments and repay the principal on its debt. Bonds may also be subject to call risk, which allows the issuer to retain the right to redeem the debt, fully or partially, before the scheduled maturity date. Proceeds from sales prior to maturity may be more or less than originally invested due to changes in market conditions or changes in the credit quality of the issuer.
Quality refers to the bond ratings provided by the various third-party ratings agencies. Stability and predictability refer to the cash flow of individual securities and not to the market value or performance of portfolio holdings. There is no guarantee this strategy will lead to investment success.
Duration is a measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates. Duration measures how long it takes, in years, for an investor to be repaid the bond’s price by the bond’s total cash flows.
Indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only, and do not represent the performance of any specific investment. Index returns do not include any expenses, fees or sales charges, which would lower performance.
ICE BofA 1-5 Year U.S. Corporate/Government Index: tracks the performance of USD-denominated investment grade debt publicly issued in the U.S. domestic market, including U.S. Treasury, U.S. agency, foreign government, supranational and corporate securities with a remaining term to final maturity less than 5 years.