AAM: Customized Investing

No two insurance companies are quite the same — so why should their investment portfolios be managed that way? At AAM, we understand that investing successfully for insurance companies requires not just a firm grasp of market opportunities, but also a knowledge of the unique parameters, guidelines, regulatory considerations and risk constraints for each client.

Strategies targeted to your line of business — and your company

We know, for instance, that different types of insurance companies require different strategies. Property & Casualty companies may need to determine the appropriate mix of taxable and tax-exempt investments in their portfolio to optimize results. Life companies, by contrast, typically focus on matching investment yield to their liability streams.

At AAM, we have spent decades learning the nuances of insurance asset management, across business lines and corporate structures. We bring to bear an in-depth understanding of both the capital markets and the specific challenges that insurers face, and we construct customized portfolios designed exclusively to meet your company’s needs.

A direct relationship with your portfolio manager

There are no intermediaries at AAM: Your relationship is with the portfolio manager who oversees the day-to-day management of your account. Our portfolio managers work directly with clients throughout the relationship, building on a detailed understanding of your investment objectives as well as your business strategy. They take the time to develop perspective on both sides of your balance sheet so that they can craft solutions that support your overall business plan. Moreover, they provide insight on strategies and answer your questions personally — whenever you need to speak to them.

Constructing portfolios on a solid foundation

All AAM portfolios are customized to meet clients’ specific needs, yet they are developed from a common discipline.

AAM’s investment process combines the longer-term strategic focus of our Investment Strategy Committee with the ongoing tactical insights generated by our trading and research teams. The Investment Strategy Committee meets weekly to analyze the long-term macroeconomic outlook as well as more specific factors that influence the various fixed income sectors in which we invest. From these analyses we generate our broad portfolio themes, such as target sector allocations, that form the basis for our ongoing portfolio structure.

On a daily basis the trading and research teams develop security-specific trade recommendations based on activity in the capital markets, including issuance of new securities, headline news events and yield curve movements. These “best ideas” are communicated to the portfolio management teams and integrated into client portfolios based on suitability for individual client objectives and risk tolerances. While we strive to have thematic consistency across portfolios, the customization to client guidelines is a key deliverable of our investment management service.