Intermediate Duration

• Core – Construct a portfolio using all major fixed-income sectors with a bias towards non-Treasuries, especially corporate, mortgage-backed and asset-backed securities. Value can be added through sector rotation, issue selection, duration and term structure weighting.
• Core Full Discretion – Construct a portfolio using all major fixed income sectors with a bias towards non-Treasuries. This strategy allows for opportunistic investments in high-yield, emerging markets and non-dollar securities. Value can be added through sector rotation, yield curve positioning, issue selection and duration management.
• Intermediate – Construct a portfolio using all major fixed-income sectors with a bias towards non-Treasuries, especially corporate, mortgage-backed and asset-backed securities. Value can be added through sector rotation, issue selection, duration and term structure weighting.

Alternatives

Macro Opportunities – Macro Opportunities uses a long-term assessment of value complemented by short-term liquid strategies driven by market dislocations. The focus is on global valuations in credit, changes in interest rates and volatility conditions. The strategy offers active management and flexible guidelines that enable the manager to direct exposures opportunistically toward segments of the market that represent strong value opportunities.

Long Duration

Long Duration Full Discretion – Construct a portfolio predominantly using governments and corporates with duration targets in excess of eight years. This strategy allows for opportunistic investments in high-yield, structured securities, emerging markets and non-dollar securities. Derivatives may be used to enhance portfolio strategy and control risk. Value can be added through sector rotation, yield curve positioning, issue selection and duration management.

Total Return

• Global Multi-Sector – Construct a strategic multi-sector portfolio by investing in global fixed-income markets and currencies. Primarily, these are mortgage- and asset-backed securities, high-yield corporate securities, investment-grade corporate securities and emerging market securities. Value can be added by active sector selection and by security selection. Portfolio risk is controlled through broad diversification across markets and sectors.
• Global Total Return – Construct a portfolio that employs an actively, team-managed investment approach around a long-term, value-oriented investment philosophy. The strategy utilizes an opportunistic fixed-income approach, independent of any traditional bond index benchmark, which seeks to maximize total return through active macro strategies and tactical asset allocation across the global fixed-income opportunity set. It does this primarily by identifying relative value among securities and sectors in the investment-grade global fixed-income and currency markets. Strategies employed include duration and yield curve positioning, currency allocation / hedging, relative-value trading as well as sector rotation and issuer selection; while emphasizing macro strategies.

Government

Global Sovereign – Construct a portfolio using all major global investment-grade fixed-income markets and currencies, with a bias towards government issues.

Region / Country Specific

• Asia External Debt – Construct a diversified portfolio of Asian sovereign, quasi-sovereign and corporate issuers. Value is added through sector allocation, country allocation / duration, sub-sector and issue selection, yield curve positioning and currency. Portfolio risk is controlled through broad diversification across strategies, active risk budgeting and scenario analysis. Construct a diversified portfolio of Asian sovereign, quasi-sovereign and corporate issuers. Value is added through sector allocation, country allocation / duration, sub-sector and issue selection, yield curve positioning and currency. Portfolio risk is controlled through broad diversification across strategies, active risk budgeting and scenario analysis.
• Asia Local Currency – Construct a diversified portfolio of Asian government bonds in their local currencies with a controlled exposure to non-government issuers. Value is added through country allocation/duration, currency, duration, yield curve positioning, sector allocation and sub-sector and issue selection. Portfolio risk is controlled through broad diversification across strategies, active risk budgeting and scenario analysis.
• Euro Core Full Discretion – Construct a portfolio using all major fixed-income sectors with a bias towards euro-denominated securities. This strategy allows for opportunistic investments in high-yield, emerging markets and non-euro securities. Value can be added through sector rotation, issue selection, yield curve positioning, duration management and non-benchmark exposure. Market risk is controlled by constraining duration exposure.
• Pan-Euro High Yield – Construct and maintain a diversified portfolio of European high-income securities. Added value is sought through issuer/issue selection and sector rotation. LCHS uses various tools, both external and proprietary, to help identify, measure and manage portfolio risk.

Sector Strategies

Emerging Markets Debt

Emerging Markets Debt Diversified – Construct and maintain a diversified portfolio of government and corporate issuers in emerging market countries. Value can be added through sector rotation, issuer/issue selection and country rotation. LCHS uses various tools, both external and proprietary, to help identify, measure and manage portfolio risk.

Credit

• Global Credit – Construct an investment-grade portfolio that emphasizes corporate bonds. Value can be added through sector rotation and issue/issuer selection.
• Multi-Asset Credit – Construct a diversified portfolio of global high-income securities, including investment-grade credit, non-dollar, high yield, bank loan, emerging markets, and structured securities. We seek to add value through sector rotation, yield curve positioning, issue selection, duration management, country selection, and currency positioning.
• Short-Dated High Yield – To construct and maintain a portfolio of high-yield investments with maturities of seven years or less that seeks to generate superior risk-adjusted returns. A key ingredient of the process is to uncover issues that LCHS believes are candidates that may be retired early for various reasons. These reasons may include onerous covenant feature(s), interest rate savings or an issuer’s view on the direction of interest rates.

Inflation-Linked

TIPS Full Discretion – Construct a well-diversified, higher-yielding inflation-protected portfolio with a bias towards Treasury Inflation-Protected Securities (TIPS). Exposure to the diversifying sectors (which include credit, global inflation-linked securities and mortgage-backed securities) may be derived through derivative and forward transactions. This strategy allows for opportunistic investments in high-yield, emerging markets, non-dollar securities, commodities and bank loans.

Structured Product

Structured Product – Construct a portfolio using all structured product sectors, including non-agency residential mortgage-backed, commercial mortgage-backed and asset-backed securities.

Municipal

Municipal Intermediate Aggregate – Construct a portfolio using municipal securities and seek to add value through yield curve management, sector allocation and security selection

Global Solutions

Total Return

• Global Multi-Sector – Construct a strategic multi-sector portfolio by investing in global fixed-income markets and currencies. Primarily, these are mortgage- and asset-backed securities, high-yield corporate securities, investment-grade corporate securities and emerging market securities. Value can be added by active sector selection and by security selection. Portfolio risk is controlled through broad diversification across markets and sectors.
• Multi-Asset Credit – Construct a diversified portfolio of global high-income securities, including investment-grade credit, non-dollar, high yield, bank loan, emerging markets, and structured securities. We seek to add value through sector rotation, yield curve positioning, issue selection, duration management, country selection, and currency positioning.

Credit

• Global Credit – Construct an investment-grade portfolio that emphasizes corporate bonds. Value can be added through sector rotation and issue/issuer selection.
• Global High Yield – Construct and maintain a diversified portfolio of high-income securities. Value can be added through issuer/issue selection and sector rotation. LCHS uses various tools, both external and proprietary, to help identify, measure and manage portfolio risk.

Inflation-Linked

Global Inflation Linked – Construct a portfolio primarily of inflation-indexed securities. Value can be added through country selection, term structure, issue selection, and duration management.

Government

Global Sovereign – Construct a portfolio using all major global investment-grade fixed-income markets and currencies, with a bias towards government issues.

Diversified

Global Core Full Discretion – Construct a portfolio using global fixed-income markets and currencies. Added value is sought through country and currency allocation, sector rotation, duration and yield curve management, as well as issue selection. Portfolio risk is managed through broad diversification across markets/sectors, duration management and active hedging of currency exposure.

Alternatives

Macro Opportunities – Macro Opportunities uses a long-term assessment of value complemented by short-term liquid strategies driven by market dislocations. The focus is on global valuations in credit, changes in interest rates and volatility conditions. The strategy offers active management and flexible guidelines that enable the manager to direct exposures opportunistically toward segments of the market that represent strong value opportunities.