Sector Q&A

Most of our traditional fixed income portfolios hold a diversified bucket of securitized products. These includes Asset-Backed Securities (ABS), Mortgage-Backed Securities (MBS) and Commercial Mortgage-Backed Securities (CMBS). This case study details the key points of emphasis in LIM's securitized research.
LIM’s investment objective is to consistently generate strong risk-adjusted returns. Our process is founded on identifying and mitigating risk – seeking attractive return potential opportunities by avoiding underperformers. LIM analysts incorporate components under the categories of environmental, social and governance (ESG) into their assessment of industries, issuers, collateral and obligors. Evaluating these aspects is not a new phenomenon, but rather have been a part of research for many years. However, as disclosures improve and research continues to confirm, integrating these topics in a more formal and standardized manner makes good investment sense.
Many clients have given us the flexibility to invest a portion of their portfolio (typically to a maximum of 10%-15%) in high yield securities across a variety of mandates, including Short Duration, Intermediate Duration, Core and High Net Worth portfolios. This case study details the key points of emphasis in LIM's high yield research.
This case study evaluates how Longfellow utilizes municipals and points of emphasis in our research process.