The Core Bond Index investment strategy seeks a favorable long-term total return from a portfolio of fixed-income securities designed to produce a return that corresponds with the total return of the U.S. investment-grade bond market based on the Barclays Capital U.S. Aggregate Bond Index.
The Core Bond Index strategy attempts to replicate the Barclays Capital U.S. Aggregate Bond Index using a proprietary quantitative process that closely matches the overall investment characteristics of the index. The investment process takes into access to cash flow, trading activity, and corporate actions in order to maintains the portfolio in line with benchmark.
In addition, the portfolio management team employs proprietary optimizing techniques to evaluate and control portfolio risk, with a goal of maintaining portfolio-tracking error within very close range of the index, while effectively managing trading costs and other portfolio expenses.
Core Bond Index portfolios are subject to certain risks such as market and investment style risk. Fixed-income investments are subject to certain risks such as interest rate, inflation, and credit risks.
This material is provided for the informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate.