Core Plus

Core fixed income investing – with tactical allocations to high yield and emerging markets debt – aimed at enhancing alpha.

Designed for investors seeking exposure to all major fixed income asset classes, our Core Plus strategy allocates primarily to U.S. investment grade, with up to 20% in tactical allocations to emerging markets debt, high yield and non-U.S. investment grade.

Leading with a strategic allocation to investment grade, we tactically over and underweight the portfolio in pursuit of alpha.  A fundamentally-driven, relative-value process guides our high yield and emerging markets allocations, both of which are managed by experienced sector specialists as distinct portfolios.

Emphasizing tactical sector allocation as a potential source of excess return, our disciplined process leverages the expertise of all Stone Harbor portfolio managers and analysts.  Our approach includes:

  • Quantitative tools to create a strategic asset allocation framework
  • Qualitative judgments to determine tactical sector weightings
  • Risk management from the perspective of relative return volatility and shortfall risk
  • Credit monitoring and a strong sell discipline

We deliver choices – providing Core Plus strategies hedged against Sterling, Euro and other major currencies customized to a full range of relevant benchmarks.