GW&K has been managing taxable bond portfolios for clients for more than three decades. We aim to take advantage of the relative valuation among distinct bond sectors and the increased opportunities to generate income and capital appreciation in changing market environments. Our selective and opportunistic long-term investing style seeks to capture attractive risk-adjusted returns over time.
Guiding Principles
Active Multi-Sector Approach
We are active, multi-sector asset allocators. Depending on where we are in the economic cycle, the interest rate climate, and other market factors, we seek out the best relative value among investment grade and high yield corporate bonds, securitized bonds (agency and commercial mortgage-backed securities), government bonds, and Treasuries.
Comprehensive Research
Our active approach combines top down macroeconomic analysis and rigorous bottom-up credit research. We evaluate the business cycle, valuation trends, and market technicals to guide our market and sector allocation decisions. Our security selection process combines fundamental, valuation, and technical analysis to identify companies with solid business models and sustainable cash flows.
Risk Sensitive
A key tenet of our active approach to managing fixed income portfolios is to mitigate risk through diversification, in-depth research, and a distinct bias for quality.
The Taxable Bond Team’s research and security selection process
At GW&K, we have a very unique investment culture that really allows us to form lasting partnerships with our clients. We listen to our clients and then we construct customized portfolios to meet their goals, objectives, and risk control metrics. Taken together, this differentiates us from our competitors.
Mary Kane
Taxable Bond Portfolio Manager
Our approach focuses on relative value. We're constantly trying to optimize the reward that we're getting for the risks that we're taking. We do this at the sector level as well as at the individual security level. We believe one of the best ways of managing risk is by buying quality assets at attractive prices.
Steve Repoff
Portfolio Manager, Taxable Bond
We really believe that our clients win with steady, incremental income over time. Thus, on a day-to-day basis we go out and build our clients diversified yield advantaged portfolios.
Mary Kane
Taxable Bond Portfolio Manager
Teamwork and collaboration permeate the culture at GW&K. They are central to the investment process on the taxable team. Every member of our team is engaged in researching, analyzing, and selecting a new credit for the portfolio.
Steve Repoff
Portfolio Manager, Taxable Bond
The success of the taxable bond department is rooted in our active management style. We use multiple sectors of the bond market to add value over time. We aim to take advantage of the relative value opportunities that occur in the marketplace – at the sector, issue, and security level, right down to how we position ourselves along the yield curve.
Mary Kane
Taxable Bond Portfolio Manager
Commentary
GW&K Taxable Bond Market Commentary – 1Q 2024
Taxable Bond | Market Commentary
Following the dovish Fed pivot in December that opened the door to easing monetary policy for 2024, the fixed income market entered the year anticipating steep rate cuts beginning as soon as March.
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Domestic equities continued their upward march in the first quarter, extending their monthly winning streak to five and posting their fifth gain in the last six quarters.
