Investment Capabilities and Approach
Breckinridge offers multi-sector, sector-focused, and sustainable bond strategies in short, limited, intermediate, long and broad durations. Breckinridge also offers dividend income and sustainable dividend income strategies. All strategies are offered in separately managed accounts.
Our multi-sector strategies invest across a variety of investment grade bond sectors. These strategies are benchmarked against the Bloomberg U.S. Government/Credit or U.S. Aggregate Indexes.
Our sector-focused strategies invest predominately in municipal and Treasury bonds (or municipal, Treasury and other government). These strategies are benchmarked against Bloomberg Municipal Bond, Managed Money or Treasury Indexes.
Our High Quality Dividend strategies seek to generate income from dividends by investing in a portfolio of large-capitalization equities with a consistent history of paying growing dividends. These strategies are offered through separately managed accounts and can be managed on a tax-aware basis.
Our sustainable strategies emphasize ESG performance by targeting issuers with above average and/or improving ESG profiles. Values-aligned solutions are also available. Breckinridge’s sustainable strategies are available across most of our fixed income and dividend income strategies.
Our top-down outlook is determined by our Investment Committee. Chaired by our chief investment officer, the Committee is comprised of seven senior investment professionals who together average more than 20 years of investment industry experience. The members bring a diversity of views to our outlook from the perspectives of their roles in portfolio management and analysis, research, trading and investment strategy.
Rigorous Bottom-Up Research
Rigorous, bottom-up research is grounded in our view that the risks to high grade securities are asymmetrical and the downside to investing in a problematic security can be significant. The goal is to develop a comprehensive perspective on whether a security can compensate investors for risk relative to return. Our research team uses proprietary credit algorithms, a risk-based credit matrix, and quantitative and qualitative data to generate internal ratings and opinions on a broad universe of investment grade issuers.
ESG integration combines a quantitative assessment of ESG factors alongside a rigorous review of qualitative ESG considerations to derive a composite sustainability rating. Proprietary quantitative ESG frameworks draw on external data from a range of highly respected non-profit organizations, governmental agencies and sustainability ratings providers. Our qualitative ESG assessment is based on internal analysis, including engagement discussions with issuers.
Customizing Separate Accounts
Customizing separate accounts affords our investment teams significant flexibility in managing portfolios in accordance with long term client objectives. Investors own each of the securities held in their separately managed accounts. Investors in mutual funds do not have the same optionality.*
Technology innovations allow our investment teams to efficiently manage client-centric customizations across a substantial client base. We align portfolios with each client’s objectives, risk tolerances and liquidity requirements. We can customize most fixed income strategies by benchmark, sector weightings, maturity and duration targets, minimum and average credit quality, tax-status, sector and security-level screens and values-aligned screens (e.g. fossil fuel free). Our proprietary technology enables high levels of customization at competitive fees. Customizations must be reviewed and approved by investment team.