Jeff Herold (lead manager)
Fixed Income Specialty Management
For investors seeking a relatively stable and secure return, fixed income provides a high quality, liquid component to a portfolio. To serve clients with unique needs and mandates, we approach fixed income with a robust, multi-strategy approach that has consistently generated low-risk, above-benchmark returns in all market conditions.
An integral element of our multi-strategy approach is positioning the portfolio for anticipated changes in interest rates. Forecasting interest rate changes begins with a broad economic outlook, considering the pace of growth, the rate of inflation as well as North American monetary policy. What becomes interesting and adds significant value is predicting how markets respond to these shifts. In constructing our portfolio, we combine bonds with various durations to optimize yield and term structure as well as use our cash position strategically. This approach has positively impacted our returns.
Our team does in-depth research and analysis of the Canadian bond market, identifying sectors with strong relative value and selecting individual securities that meet our requirements for credit risk, covenant protection and liquidity. Issuers are selected on the basis of their business and financial risk profiles, management strength, growth plans and financial policies. Final security selection is based on relative value and its suitability within the strategic portfolio structure.
J Zechner Associates is widely recognized for our strong performance in fixed income. Our process stands apart for its rigorous credit analysis and taking decisive action when we believe sectors are over-valued.