Broad Market Strategic Income Fund

DateDaily Change
CAMBX
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Cincinnati Asset Management

Broad Market Strategic
Income Fund

DateDaily Change
CAMBX
0
0
0

CAMBX

Strategy. Discipline. Value.

The CAM Broad Market Strategic Income Fund provides an opportunity for long-term investors to find a conservative risk/reward balance that focuses on downside protection and total return. The mutual fund’s strength is in its managers’ disciplined approach to bottom-up, value investing. The managers use in-depth analysis in an attempt to identify and purchase high-quality bonds when they are undervalued or out of favor, resulting in income and growth potential for CAMBX.

Our Process

A Disciplined Approach

In constructing the portfolio, we rely on a proprietary analytical discipline that measures the yield of a security against our assessment of that security’s quality. Buy and sell decisions are made on the basis of the constant comparison of the bond issues of companies on our “focus list,” searching for securities with a higher yield relative to our quality assessment. Our objective is to improve quality, increase yield and shorten maturity.

Identify industry groups and corporations trading below current and historic market levels.

Based on fundamental credit research, select issuers that in our opinion exhibit asset strength and an appropriate capital structure.

Select portfolio candidates that we believe have potential to increase revenues and cash flow.

Build our “focus list” from those candidates that we consider to have a better competitive advantage.

Fund Philosophy

Favorable risk/reward scenarios

As conservative investors, our choice to manage corporate bonds, exclusively, is the result of capitalizing on the structural inefficiencies of the corporate bond market as well as maximizing favorable risk/reward scenarios that exist within domestic fixed income markets. The structural inefficiencies of the corporate bond market are predicated upon two distinct factors:

  • The fragmentation of the market (there is no central pricing source)
  • Investors’ tendency to overreact to events, providing a mispricing of securities. Moreover, over the long term, corporate bonds have outperformed Treasuries and other fixed income sectors.*

CAM follows a conservative “bottom-up value” investment discipline that seeks out companies that are currently out of favor with investors, but poised to improve. The primary focus is preservation of capital with a secondary, but extremely important, emphasis on total return.

Holdings by Sector

(as of 9/30/17)

Our portfolios are not managed to a benchmark in setting overall portfolio characteristics via tracking error.  We believe there are some inherent problems with the methodology of managing to a benchmark. We do look to outperform respective benchmarks over a full market cycle, but the prime objective is an absolute return. We do not utilize interest rate anticipation tactics. We look to minimize the impact of macro-economic factors, such as interest rate risk, from the investment process by employing defensive maturity structure within the portfolio.

1 Period of 1980-2014; Source: Credit Suisse, 2015 Leveraged Finance Outlook and 2014 Annual Review. 

Fund Philosophy

Favorable risk/reward scenarios

As conservative investors, our choice to manage corporate bonds, exclusively, is the result of capitalizing on the structural inefficiencies of the corporate bond market as well as maximizing favorable risk/reward scenarios that exist within domestic fixed income markets. The structural inefficiencies of the corporate bond market are predicated upon two distinct factors:

  • The fragmentation of the market (there is no central pricing source)
  • Investors’ tendency to overreact to events, providing a mispricing of securities. Moreover, over the long term, corporate bonds have outperformed Treasuries and other fixed income sectors.*

CAM follows a conservative “bottom-up value” investment discipline that seeks out companies that are currently out of favor with investors, but poised to improve. The primary focus is preservation of capital with a secondary, but extremely important, emphasis on total return.

Our portfolios are not managed to a benchmark in setting overall portfolio characteristics via tracking error.  We believe there are some inherent problems with the methodology of managing to a benchmark. We do look to outperform respective benchmarks over a full market cycle, but the prime objective is an absolute return. We do not utilize interest rate anticipation tactics. We look to minimize the impact of macro-economic factors, such as interest rate risk, from the investment process by employing defensive maturity structure within the portfolio.

1 Period of 1980-2014; Source: Credit Suisse, 2015 Leveraged Finance Outlook and 2014 Annual Review. 

Holdings by Sector

(as of 9/30/17)

Investment Advisors

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