Core Strategy

Fact Sheet Commentary

The goal of our Core Fixed Income strategy is to outperform the Bloomberg US Aggregate benchmark over time and through time. Since the fixed income portion of a portfolio also serves as a risk diversifier to volatility we believe it is essential to provide consistent returns each and every year. We seek a high batting average of success without incurring unnecessary risks in the portfolio or making bets. Over time we expect to deliver excess returns with comparable overall volatility to the market, and greater downside risk protection during difficult market periods.

Strategy Overview

Our primary objective across all duration mandates is to outperform the market with comparable volatility by utilizing our proprietary and unique Quality Yield approach and the deep experience and continuity of our investment team.

Investment Philosophy

Johnson believes that bonds should behave like bonds, especially during periods of economic and market stress. We also believe that the consistent compounding of income drives returns in the bond market. As a result, our strategy employs our proprietary Quality Yield approach.

Portfolio Overview

The cornerstones of our approach are to emphasize investment grade, non-government securities and capture the slope of the yield curve, focusing on building portfolios with a sustainable yield advantage over the benchmark. Investment decisions are made with respect to sector allocation, maturity structure and issue selection that capture the relative value of the bond market for client portfolios.

Investment Guidelines

  • Benchmark: Bloomberg US Aggregate
  • 100% investment grade securities
  • Duration between 80% - 120% of benchmark (110% normal)
  • Diversification by sector, issuer and maturity
  • Expected annual turnover between 20%-40%
  • Typical portfolio holds between 60-80 securities
  • No derivatives, no junk, no foreign currency exposure
  • No interest rate speculation

Meet the Portfolio Managers

Fixed Income

We implement our proprietary Quality Yield investment approach across our suite of duration mandates with the objective of outperforming the market while maintaining a focus on downside risk management and comparable volatility.

Equity

Johnson Asset Management offers both enhanced return index capabilities and active equity solutions. We implement a repeatable and disciplined process that seeks to optimize return per unit of risk.

Mutual Funds

Johnson Asset Management’s Fixed Income and Equity solutions are accessible through our competitively priced mutual funds, which we have been providing institutional clients since 2000.

Disclaimer:

Important Information

Johnson Asset Management ("JAM") is a division of Johnson Investment Counsel, Inc. ("JIC"), an SEC-registered investment adviser. Registration does not imply a certain level of skill or training.

This information is provided for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any security. Any investment decision should be made based on an investor's individual objectives, financial circumstances, and risk tolerance.

All investments involve risk, including the possible loss of principal. Past performance does not guarantee future results.

Portfolio holdings, characteristics, allocations, and investment guidelines are subject to change without notice and may differ for individual client accounts.

For additional information regarding the strategy, including investment objectives, risks, fees, benchmark information, performance disclosures, and composite-related information, please refer to the applicable strategy fact sheet and commentary.