Core Plus Strategy

Fact Sheet Commentary

The goal of our Core Plus Fixed Income strategy is to perform better than the Bloomberg US Aggregate benchmark over time. The Core Plus strategy follows the same Quality Yield investment approach utilized in our Core strategy and intends to further enhance yield and total return with an allocation to high-quality high yield securities as well as treasury futures. 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 and downside protection in risk-off environments. 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 and more downside risk protection by utilizing our proprietary and unique Quality Yield investment approach and the deep experience and continuity of our team.

Investment Philosophy

Johnson believes that bonds should behave like bonds, especially during periods of economic and market stress. We believe combining both Quality and Yield produces superior, risk-adjusted returns. As a result, our strategy employs a 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. The Core Plus portfolio will also include non-investment grade securities for yield and total return enhancement. 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
  • High-quality BB/B rated corporates to enhance portfolio yield
  • Overweight low beta, shorter duration credit
  • Strict adherence to quality credit discipline
  • Own longer duration government as a credit hedge and for liquidity
  • Neutral duration slightly longer than benchmark

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.