Core Bond is AAM's primary fixed-income strategy, investing throughout the investment-grade market within a relative value framework.

The investment management process begins by identifying an optimal, or AAM Normal Portfolio. This quantitative optimization analysis includes reasonable sector constraints and leads to the construction of a high quality investment grade portfolio with the highest risk-adjusted return profile. This process uses historical monthly excess return data from 1988 to present and is updated quarterly.

Once the AAM Normal Portfolio is modeled, individual client needs, including but not limited to, investment policy guidelines, risk profile, business lines, tax position and state of domicile are factored into structuring each client portfolio.

Our sector specialists, along with our internal investment committee, meet bi-weekly to determine sector over/under weighting, relative to the AAM Normal Portfolio. This group formulates strategy in response to current market and relative value conditions.