Our process centers around structuring a portfolio designed to provide above-benchmark expected returns over a range of interest rate scenarios. We actively manage yield curve structure and sector allocation while we maintain duration close to the benchmark. Our proprietary, quantitative Portfolio Optimization Model enables our investment team to analyze various yield curve structures and sector allocations across numerous interest rate and yield curve scenarios.

• Yield Curve Structure - We analyze the entire yield curve, adjusting the placement of investments along the yield curve to emphasize the areas with the greatest potential for expected return.

• Sector Allocation - The allocation process entails over-weighting sectors that offer greater opportunity for expected return based on current yield spreads over Treasuries and yield spreads we project over a six-month horizon period.