Cincinnati Asset Management
Specialized Management Of Fixed Income Securities
As advisors to CAMBX, Cincinnati Asset Management, Inc. has specialized in the management of fixed income securities for our clients for over 25 years.
We concentrate our efforts almost exclusively in the North American taxable bond market, managing a range of strategies from the very conservative to the more opportunistic. In all cases, fundamental credit research is a primary element of our security selection process. In addition to our open-end mutual fund, CAM offers four strategies for investors’ fixed income allocations of their investment portfolios
The portfolio management team employs a “value” strategy. We purchase bonds that we believe are undervalued but poised to improve over time based on our fundamental credit analysis and financial projections.
The key to our long-term performance is a more conservative strategy that focuses on total return and the minimization of downside in adverse markets. CAM stresses asset quality and yield relationship, not just yield.
Potentially benefits long-term investors by further diversifying their bond portfolios. Adding a high yield bond strategy has historically increased long-term returns while decreasing long-term volatility and has reduced the adjusted duration of an all investment grade portfolio.
This strategy was initiated in the second quarter of 2004 to accommodate those investors seeking to shorten the duration of their portfolios.
Employing a Bond Manager
We buy bonds of companies whose credit quality is stable to improving. Continuous monitoring of the corporation’s credit quality is imperative to determine when a bond’s price no longer reflects its actual credit quality.
CONSISTENT APPLICATION OF AN INVESTMENT STRATEGY
Our relative value approach to buying and selling bonds meets defined objectives of intermediate maturity and best value, as well as broad diversification of holdings.
BUYING/SELLING IN THE OVER-THE-COUNTER MARKET
The bond market is an over-the-counter market that requires knowledge of historical pricing and the different bid/ask quotations of the many different market makers. Investment grade and high yield corporate bonds cover over 20,000 separate issues of over 2,000 companies; inventories are exclusive, or vary, among brokers, so having the ability to trade with best execution with many different brokers is imperative to achieving better portfolio performance.
EXECUTING IN SIZE
It is not unusual to observe significant price disparities between smaller retail executions and larger block trades. We buy/sell for all our clients in sufficient quantity in one trade to satisfy the needs of all our clients’ portfolios; the smaller retail investor participates at the same price as the larger institutional client when a transaction is effected.