Sterling Capital Fixed Income Capabilities
While fixed income generally serves a straightforward role in an investment portfolio, seeks to provide income and risk protection, managing fixed income is anything but simple.
Because investors typically tolerate less risk in fixed income allocations, and losses can take years to recover, professional management is essential. Most fixed income securities trade “over the counter” in less liquid markets, making expertise in trading and risk management critical. Investors need portfolio managers who understand the full spectrum of risks in fixed income and have the skill to navigate this less-liquid asset class.
At Sterling Capital, our experienced fixed income team has managed assets for institutional and retail clients for decades. In today’s environment, where the search for incremental yield often overshadows risk management, our process is rooted in striking a balance between the two.
Our approach is differentiated by a deeply integrated, team-based process that combines top-down macroeconomic analysis with bottom-up security selection to capture prevailing themes and opportunities.
Who We Are
Sterling Capital leverages the collective expertise of our team across every mandate. This includes insights into macroeconomic trends as well as sector-specific and security-level analysis. The result: fixed income strategies that seek to perform across market cycles, delivering an attractive balance of risk management, income, and long-term capital appreciation.
Philosophy and Process
Sterling Capital seeks to provide long-term, consistent investment performance and exceptional client service. We strive to achieve these through our process for managing risk and focusing on developing strong client relationships.
Our Fixed Income team aims to deliver consistent, superior risk-adjusted performance over time through a multi-faceted approach to investing. Based on our team's forecast for the broader economy and specific market sectors, we utilize a variety of strategic and tactical levers that allow us to construct portfolios for various market environments.
Due to the asymmetric risk and return profile of bonds, we believe in the importance of quantifying risk prior to assessing the potential return of any investment. We analyze risk on both a stand-alone basis and within the portfolio context and firmly believe that when it comes to risk, “if you cannot measure it, you cannot manage it.”
Philosophy
- Independent, fundamental research is the foundation of our investment process.
- We strive to deliver a predictable and understandable portfolio that produces a competitive rate of return
and consistent income. - Most individual investors purchase bonds for income, capital preservation, and diversification benefits; not
for a short-term trade. - Many sectors of the bond market offer opportunities for selective investors.
