Marshall Fixed-Income Fund

Investment Philosophy

The investment objective of the Marshall Fixed Income Fund is to outperform the Barclay’s Corporate Index.  The fund seeks to achieve its objective by identifying credits that will provide attractive relative yield with minimal credit risk; that is an appropriate risk/reward.  The portfolio management team utilizes top-down macroeconomic analysis to identify economic sectors that are likely to benefit from economic developments with a two to four year time horizon. The management team then identifies companies within target sectors that it feels will experience an improved credit outlook.  Additionally, the team uses a top-down approach to project likely yield curve movements and position the portfolio’s duration accordingly.

Security Selection Methodology

Investment Style:

  • Governments & Corporations

General Investment Mandate:

  • Long only
  • ADR ≤ 10%
  • No one security can account for >10% of the portfolio
  • Annual turnover ratio will be ≤ 50%, but, with the permission of the SIF instructor, can be >50%
  • Cash ≤ 10%
  • Sell if fraud is announced (or suspected) 

Additional Concentration Guidelines:

  • 60% Core
  • ≤40% Outside of the Benchmark “Basket”, including HY (≤30%), taxable Munis… etc. (to maximize the flexibility and learning for current and future managers)
    • “Passive” ETFs can be used for liquidity, diversification or gaining exposure to certain sectors that owning/single issues might prove too costly (e.g., bid-asked spread, other transaction costs, indivisibility, etc.). For example, you could use an ETF to gain exposure to emerging markets
    • Similar due diligence and analysis must be performed when investing in ETF compared to buying single issues.

Benchmark:

  • Blended Index