As a bond fund manager in the early 1990s, Peter saw clients paying high fees for one size-fits-all investment solutions. He believed Breckinridge could create a better product at a better price. "Leveraging technology, we delivered investment grade fixed income separate accounts customized to client-centric goals," says Dominica Ribeiro, Chief Marketing and Distribution Officer.
In a separate account, the investor has the advantage of direct ownership of the portfolio securities and greater control of those investments than in a pooled account like a mutual fund.* “We built a research team and technology platform that allows us to efficiently monitor our holdings, and actively manage portfolios, while preserving the important advantage of owning securities directly in a separate account,” says Co-Head of Portfolio Management Matt Buscone.
* Some investors are more suited for mutual funds and similar pooled accounts as they may have lower minimum investment requirements and potentially lower management fees. Investors should consult with their financial advisers before making any investment decisions.
Market disruption during the Global Financial Crisis proved the value of our philosophy. This type of transparency, which can be applied to equities (or any security), is a reason we are firm believers in separate accounts. “We could point to each bond owned in their accounts and explain to clients why we believed each issuer was a safe issuer,” Co-Head of Portfolio Management Jeff Glenn says.
Following the financial crisis, our investment process expanded to include assessing how ESG factors may affect future risks and costs.
Our initial effort was all about trying to understand our borrowers better and finding ways to systematically assess non-traditional, off-balance sheet risks” says Adam Stern, Co-Head of Research. “In short-order, our investment process included integrating ESG factors into our research process.” We look beyond financial results for ESG risks that may exist in an issuer’s operating model.
“Our research process aims to identify potential future costs due to unsustainable present practices that may impact financial risk and ultimately the spread or price of a bond,” says Nick Elfner, Co-Head of Research.
“Integrating sustainable investing practices into our philosophy also expanded our capacity to meet the needs of investors seeking to align investment portfolios with their values,” explains Tim Coffin, Director of Sustainability.
Breckinridge’s trading platform is exclusive to the firm. “Our trading platform is a real-time window into the marketplace,” says Sara Chanda, Head of Municipal Trading. “Traders have a comprehensive view of new deals and security offerings linked to internal fundamental analysis and portfolios with matching needs; important information needed to recognize value and to purchase assets that are appropriate to address portfolio objectives.”
“Because of our independence and scale," says Christina Lynch, Co-Head of Consultant Relations, "we can reinvest in our business with the singular intent of enhancing our ability to meet the needs of our stakeholders.”
We are continually challenged to be more insightful, more efficient and deliver greater value to our clients.
In March 2023 we applied our same convictions and philosophy to the development and launch of our dividend income strategies. These strategies leverage Breckinridge’s expertise in fundamental bottom-up credit research, applying the firm’s corporate credit ratings in an attempt to systematically identify high quality, large cap companies with a strong historical record of paying dividends.
