The Bond markets are one of the most important asset classes for many investors as well as for James Investment Research. Portfolio objectives such as liquidity and income often require fixed income exposure. We are active fixed income managers. That means we will adjust the risk profile of the bond portfolio to reflect what is happening in the economy.
This risk management is multi-dimensional. James uses duration, convexity, credit rating and other important fixed income characteristics to build a bond portfolio that reflects the client's risk tolerance as well as his/her objectives and needs. Since each client is different, each client's portfolio will also be unique.
James will use economies of scale whenever possible to keep transaction costs low. Also, buying and selling in large blocks enables clients to get better prices. In the competitive fixed income markets, this is an important advantage.
Of course a major function of a bond portfolio is to protect capital when the stock market is declining. The transfer of assets from stocks to bonds in those difficult times and then back into stocks when the outlook for equities is brighter is referred to as strategic asset allocation. This is the cornerstone of our balanced management style.
Professionally managed bond portfolios have been a James hallmark for decades. These portfolios are always invested in bonds and generally add growth to their list of objectives. Our statistical fixed income indicators, revalidated every other year, have been adding value to these client portfolios when rates rise as well as fall.
The value of careful research and professional management is very apparent in James' fixed income style. Whether the client is an individual investor or a large institution, James bond management is a powerful tool to help meet financial goals.