This strategy consistently invests in those fixed-income sectors that have strong risk-adjusted performance potential and eligible ETF representation. The portfolio is operated within a quantitative framework that seeks to objectively control the portfolio level yield, modified duration, and volatility. The framework is implemented as frequently as necessary – and no less than quarterly – in order to try to capitalize on investment opportunities as they arise.
The fixed-income strategy’s investment approach can help provide solutions to a broad range of diversification needs. The trading efficiency afforded by ETFs allows the Innealta Investment Team to quickly and cost-effectively alter portfolio exposures to reflect prevailing market opportunities. The Innealta fixed-income portfolio provides a well-diversified base from which client-centric portfolios can be built. It provides global diversification to the client’s overall fixed-income allocation.