Our Investment Approach
Overall, we are active investment managers focused on risk awareness and management. We emphasize a disciplined investment management process and foster a team-based portfolio management environment.
Fixed Income Approach
We approach fixed-income investing by first evaluating the relative attractiveness of various fixed-income sectors. We are conscious of the underlying sector weights of the benchmark, but sector weights are the residual of security selection.
Within our process, the fixed-income market is broken into two segments — corporate credit and structured credit — with specific evaluation variables for each area of the market. We do not believe there is a high probability of generating long-term outperformance by using interest rate management as a primary investment tactic. Therefore, we do not attempt to anticipate interest rates. Instead, our focus is on top-down sector allocation with bottom-up security selection.
Our fixed income team is comprised of the same team of portfolio managers, credit analysts and traders that manage fixed-income assets for the Knights of Columbus.
Our investment partner for the equity strategies is Boston Advisors, LLC, which serves as our equity sub advisor. Boston Advisors has collaboratively managed equity investments on behalf of Knights of Columbus since 2011. Knights of Columbus owns 20% of Boston Advisors, LLC.
Boston Advisors approaches equity investing by looking at companies in two ways — quantitatively and fundamentally. Both fundamental and quantitative inputs drive the equity investment team’s decision making. This hybrid investment approach combines sophisticated, proprietary quantitative modeling with a fundamental overlay. It is during the fundamental review that portfolio managers collaborate to interpret the data, carefully considering what the quantitative models are indicating, within the context of current stock ranking, market environment and valuation information. Our relationship with Boston Advisors is an additional aspect of the strategic vision that Knights of Columbus Asset Advisors brings to investors.