U.S. Core Fixed Income

Summary

STRATEGY FACTS

As of 12/31/2018 tooltip

When Listed:

Mutual funds and CIT only available in the United States.

SICAVs only available in certain non-U.S. countries. Please check country availability.

Available Vehicles Separate Account
CIT
Mutual Fund
Investment Universe U.S. Intermediate Duration Fixed Income
Benchmark Bloomberg Barclays U.S. Aggregate Bond Index
Inception Date 05/01/1993
Total Assets $8.05 B

TARGET

Tracking Error 1% - 2% over a standard market cycle
Excess Return 0.5% - 1% over a standard market cycle

INVESTMENT TEAM

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Portfolio managers are not licensed by the Hong Kong Securities and Futures Commission to perform any regulated function in or from Hong Kong. Furthermore, none of the portfolio managers are located in or operate in or from Hong Kong.

Charles Tan

Kevin Akioka

Robert V. Gahagan

2 Client Portfolio Managers

Documents & Resources

 

The U.S. Core Fixed Income strategy invests across the major investment-grade bond sectors in an effort to create a broadly diversified, high-quality, intermediate-duration, fixed income portfolio, while controlling risk relative to the benchmark.

We believe that significant areas of the bond market are inherently inefficient and mean reverting. Opportunities exist to exploit the bond market's inefficiencies and mean reversion tendencies through a diverse collection of active positions in duration, yield curve, sector allocation, sector management and security selection encompassed within a risk-managed framework.

Underlying Tenets:

  • Proprietary Fundamental Research
  • Diversified Sources of Return
  • Active Risk Budgeting

Performance

As of 12/31/2018

  COMPOSITE PERFORMANCE IN USD (%)
  QTR YTD 1 YR 3 YR* 5 YR* 10 YR*
U.S. Core Fixed Income (gross) 0.82% -0.82% -0.82% 2.07% 2.70% 3.96%
U.S. Core Fixed Income (net) 0.74% -1.14% -1.14% 1.63% 2.23% 3.45%
Standard Deviation --- --- 2.76% 2.82% 2.74% 2.84%
Sharpe Ratio --- --- -0.97 0.38 0.77 1.27
Bloomberg Barclays US Aggregate 1.64% 0.01% 0.01% 2.06% 2.52% 3.48%
Excess Return -0.82% -0.83% -0.83% 0.01% 0.18% 0.48%
Tracking Error --- --- 0.90% 0.62% 0.56% 0.70%
Information Ratio --- --- -0.93 0.02 0.33 0.68

*Annualized

Sources: Bloomberg Index Services Ltd, FactSet

Data reflects past performance. Past performance does not guarantee future results. The value of investments may fluctuate. Data assumes reinvestment of dividends and capital gains.

For a presentation that complies with the GIPS® standards, click here .

For purposes of compliance with the Global Investment Performance Standards ("GIPS®"), the Firm is defined as American Century Investment Management, Inc. ("ACIM"). ACIM claims compliance with GIPS®. The U.S. Core Fixed Income composite includes portfolios that typically invest in a diversified portfolio of primarily investment grade debt securities, with a portfolio weighted-average maturity of 3½ years or longer. Index futures (and currency forwards and futures, where applicable or appropriate) are occasionally used to equitize cash and manage portfolio risk. Other derivative instruments may be used, as allowed, as part of the investment strategy. Returns are calculated and stated in U.S. dollars and may increase or decrease as a result of currency fluctuation.