Oppenheimer Investment Management

Philosophy

The OIM Intermediate Fixed Income strategy is rooted in the idea that individual security selection produces the best opportunity for risk-adjusted excess returns over time. Through an extensive, bottom-up research process, our portfolio management team focuses on optimal bond selection of investment grade corporate bonds, mortgage-backed securities, US Government Treasuries and taxable municipal bonds. The team employs a tightly controlled duration discipline and closely manages all portfolio risk factors. The portfolio management team’s objective is to produce predictable, consistent excess returns net of fees over the Barclays Capital Government/Credit-Intermediate Bond Index.

Process

Screening and Analysis

We screen the investment grade universe for corporate bonds, taxable municipal bonds, mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities that meet our standards. We also conduct labor-friendly screening and socially responsible screening of securities as well. In our security analysis, corporate bonds are subjected to a fundamental analysis of financial statements and an in-depth proprietary analysis. We also conduct a valuation of the entire capital structure for corporate bonds, as well as a credit review in our weekly research meetings. Structured securities are subjected to model cash flows and stress-test prepayment assumptions under multiple scenarios.

Security Selection

Our Intermediate Fixed Income strategy security selection includes:

50% Core Holdings
• Higher current yield than benchmark • Shorter maturities • Stable fundamentals • Long holding period

10-30% Expected Rating Upgrades
• Rapidly improving fundamentals • Identifiable catalysts • Intermediate holding period

10-30% Undervalued Bonds
• Special situations • Industry consolidations • Intermediate holding period

5-10% Opportunistic
• Mispriced security • Liquidity imbalance • Short holding period

Acquisition and DispositionThe relative value analysis for the Intermediate Fixed Income strategy is based on our proprietary spread data, and a robust fixed income analytic infrastructure. Our investment committee oversees the portfolio strategy, and reviews portfolio structure. The portfolio manager makes the final decision for security acquisition.The portfolio’s strict sell discipline includes if the risk/return on a security becomes unfavorable; if an attractive swap candidate emerges; if an analyst uncovers deteriorating credit fundamentals; if portfolio rebalancing is required; or based on client specific needs.Investment Guidelines

• Minimum quality: Baa3 or BBB- for individual securities
• Minimum weighted average quality: BBB
• Maximum single issuer exposure: 5%
• Maximum industry limit: 15%
• Maximum high yield exposure: 20%

Click here for access to our complete profile Fixed Income Intermediate Profile

Philosophy

The OIM Core Fixed Income strategy is rooted in the idea that individual security selection produces the best opportunity for risk-adjusted excess returns over time. Through an extensive, bottom-up research process, our portfolio management team focuses on optimal bond selection of investment grade corporate bonds, mortgage-backed securities, US Government Treasuries and taxable municipal bonds. The team employs a tightly controlled duration discipline and closely manages all portfolio risk factors. The portfolio management team’s objective is to produce predictable, consistent excess returns net of fees over the Barclays Capital Aggregate Bond Index.

Process

Screening and Analysis

We screen the investment grade universe for corporate bonds, taxable municipal bonds, mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities that meet our standards. We also conduct labor-friendly screening and socially responsible screening of securities as well. In our security analysis, corporate bonds are subjected to a fundamental analysis of financial statements and an in-depth proprietary analysis. We also conduct a valuation of the entire capital structure for corporate bonds, as well as a credit review in our weekly research meetings. Structured securities are subjected to model cash flows and stress-test prepayment assumptions under multiple scenarios.

Security Selection

Our Core Fixed Income strategy security selection includes:

50% Core Holdings
• Higher current yield than benchmark • Shorter maturities • Stable fundamentals • Long holding period

10-30% Expected Ratings Upgrades
• Rapidly improving fundamentals • Identifiable catalysts • Intermediate holding period

10-30% Undervalued Bonds
• Special situations • Industry consolidations • Intermediate holding period

5-10% Opportunistic
• Mispriced security • Liquidity imbalance • Short holding period

Acquisition and Disposition

The relative value analysis for the Core Plus Fixed Income strategy is based on our proprietary spread data, and a robust fixed income analytic infrastructure. Our investment committee oversees the portfolio strategy, and reviews portfolio structure. The portfolio manager makes the final decision for security acquisition.

The portfolio’s strict sell discipline includes if the risk/return on a security becomes unfavorable; if an attractive swap candidate emerges; if an analyst uncovers deteriorating credit fundamentals; if portfolio rebalancing is required; or based on client specific needs.

Investment Guidelines

• Minimum quality: Baa3 or BBB- for individual securities
• Minimum weighted average quality: BBB
• Maximum single issuer exposure: 5%
• Maximum industry limit: 15%
• Maximum high yield exposure: 20%

Click here for access to our complete profile Fixed income Core Profile

Philosophy

The OIM Core Plus Fixed Income strategy is rooted in the idea that individual security selection produces the best opportunity for risk-adjusted excess returns over time. Through an extensive, bottom-up research process, our portfolio management team focuses on optimal bond selection of investment grade corporate bonds, mortgage-backed securities, US Government Treasuries and taxable municipal bonds. The team employs a tightly controlled duration discipline and closely manages all portfolio risk factors. The portfolio management team’s objective is to produce predictable, consistent excess returns net of fees over the Barclays Capital Aggregate Bond Index.

Process

Screening and Analysis

We screen the investment grade universe for corporate bonds, taxable municipal bonds, mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities that meet our standards. We also conduct labor-friendly screening and socially responsible screening of securities as well. In our security analysis, corporate bonds are subjected to a fundamental analysis of financial statements and an in-depth proprietary analysis. We also conduct a valuation of the entire capital structure for corporate bonds, as well as a credit review in our weekly research meetings. Structured securities are subjected to model cash flows and stress-test prepayment assumptions under multiple scenarios.

Security Selection

Our Core Plus Fixed Income strategy security selection includes:

50% Core Holdings
• Higher current yield than benchmark • Shorter maturities • Stable fundamentals • Long holding period

10-30% Expected Ratings Upgrades
• Rapidly improving fundamentals • Identifiable catalysts • Intermediate holding period

10-30% Undervalued Bonds
• Special situations • Industry consolidations • Intermediate holding period

5-10% Opportunistic
• Mispriced security • Liquidity imbalance • Short holding period

Acquisition and DispositionThe relative value analysis for the Core Plus Fixed Income strategy is based on our proprietary spread data, and a robust fixed income analytic infrastructure. Our investment committee oversees the portfolio strategy, and reviews portfolio structure. The portfolio manager makes the final decision for security acquisition.The portfolio’s strict sell discipline includes if the risk/return on a security becomes unfavorable; if an attractive swap candidate emerges; if an analyst uncovers deteriorating credit fundamentals; if portfolio rebalancing is required; or based on client specific needs.Investment Guidelines

• Minimum quality: Baa3 or BBB- for individual securities
• Minimum weighted average quality: BBB
• Maximum single issuer exposure: 5%
• Maximum industry limit: 15%
• Maximum high yield exposure: 20%

Click here for access to our complete profile Fixed Income Core Plus Profile

Philosophy

The OIM Corp Core Plus Fixed Income Strategy is rooted in the idea that individual security selection produces the best opportunity for risk-adjusted excess returns over time. Through an extensive, bottom-up research process, our portfolio management team focuses on optimal bond selection of approximately 60% Double B high yield corporate bonds and 40% Triple B corporate bonds. The team employs a tightly controlled duration discipline and closely manages all portfolio risk factors. The portfolio management team’s objective is to produce predictable, consistent excess returns net of fees over the Bloomberg Barclays U.S. Credit Index.

Process

Screening and Analysis

We screen the non-investment grade universe for corporate bonds that meet our standards. In our security analysis, corporate bonds are subjected to a fundamental analysis of financial statements and an in-depth proprietary analysis. We also conduct a valuation of the entire capital structure for corporate bonds, as well as a credit review in our weekly research meetings.

Acquisition and Disposition

The relative value analysis for the Corp Core Plus Fixed Income strategy is based on our proprietary spread data, and a robust fixed income analytic infrastructure. Our investment committee oversees the portfolio strategy, and reviews portfolio structure. The portfolio manager makes the final decision for security acquisition.

The portfolio’s strict sell discipline includes if the risk/return on a security becomes unfavorable; if an attractive swap candidate emerges; if an analyst uncovers deteriorating credit fundamentals; if portfolio rebalancing is required; or based on client specific needs.

Investment Guidelines

• Minimum quality: Caa or CCC for individual securities
• Minimum weighted average quality: Baa2
• Maximum single issuer exposure: 5%
• Maximum industry limit: 15%
• Maximum high yield exposure: 20%

 

Click here for access to our complete profile Corporate Core Plus Fixed Income Profile

Philosophy

The OIM High Yield Fixed Income strategy is rooted in the idea that individual security selection produces the best opportunity for risk-adjusted excess returns over time. Through an extensive, bottom-up research process, our portfolio management team focuses on optimal bond selection of corporate bonds, preferred securities, bank loans, convertible securities and taxable municipal bonds. The team's emphasis is on relative value, and they closely manage all portfolio risk factors. The portfolio management team's objective is to produce predictable, consistent excess returns net of fees over the BofA/ML High Yield Master II Index.

Process

Screening and Analysis

We screen the high yield universe for corporate bonds, preferred securities, bank loans, distressed securities, convertible securities and taxable municipal bonds that meet our standards. In our security analysis, corporate bonds are subjected to a fundamental analysis of financial statements and an in-depth proprietary analysis. We also conduct a valuation of the entire capital structure for corporate bonds, as well as a credit review in our weekly research meetings.

Security Selection

Our High Yield Fixed Income strategy security selection includes:

70% Core Holdings
• Higher current yield than benchmark • Shorter maturities • Stable fundamentals • Long holding period

10-15% Expected Rating Upgrades
• Rapidly improving fundamentals • Identifiable catalysts • Intermediate holding period

5-10% Undervalued Bonds
• Special situations • Industry consolidations • Intermediate holding period

5-10% Opportunistic
• Mispriced security • Liquidity imbalance • Short holding period

Acquisition and DispositionThe relative value analysis for the High Yield Fixed Income strategy is based on our proprietary spread data, and a robust fixed income analytic infrastructure. Our investment committee oversees the portfolio strategy, and reviews portfolio structure. The portfolio manager makes the final decision for security acquisition.The portfolio’s strict sell discipline includes if the risk/return on a security becomes unfavorable; if an attractive swap candidate emerges; if an analyst uncovers deteriorating credit fundamentals; if portfolio rebalancing is required; or based on client specific needs.Investment Guidelines

• Minimum quality: Baa3 or BBB- for individual securities
• Minimum weighted average quality: B
• Maximum single issuer exposure: 10%
• Maximum industry limit: 15%

Click here for access to our complete profile Fixed Income High Yield Profile