The primary goal at Chandler is to add value to client portfolios through adherence to a disciplined, risk controlled process. We control market risk by maintaining portfolio duration (a measure of interest rate sensitivity) close to
each client's benchmark.

Since exposure to interest rate movements can be the most significant determinant of portfolio performance, this practice ensures that portfolio returns are likely to approximate benchmark returns even as interest rates fluctuate in ways that are often unpredictable.


Establishing Portfolio Duration

We employ a proprietary Portfolio Optimization Model to determine the best current duration for the portfolio, given our analysis of projected portfolio performance in different yield environments.

We constrain duration within a narrow band around the appropriate benchmark. We avoid market timing; however, operating within such a band affords us the opportunity to enhance portfolio returns by changing durations slightly over a market cycle, while controlling the risk of interest rate exposure within the portfolio.