Financial Professionals

Insights Q&A: Short in Duration, Long in Quality


Fixed income portfolio manager Benjamin Caron of Newfleet Asset Management was recently interviewed by about one of the portfolios he co-manages: the Virtus Low Duration Income Fund. His interview offers a close-up look at this conservative multi-sector fixed income strategy, including sector characteristics and issue selection, research process, portfolio construction, and risk management.

Could you give us some background information on the fund?

The fund was established in 1999 and is currently managed using our multi-sector fixed-income style of investing. Our multi-sector strategy has a long track record and has been used for over two decades in all of our multi-sector portfolios.

It is important to note that we select securities from all 14 sectors of the fixed-income market. Newfleet’s team of investment professionals has expertise in all sectors, including evolving, specialized, and out of- favor sectors.

Our investment strategy and processes have been very consistent through the years. The core tenets haven’t changed – we always look at relative value across sectors, industries, issues, and capital structure in a risk-controlled manner.

There is long tenure and a high degree of continuity within the team, especially with the senior members, which adds value for investors. The core group of 15 investment professionals has worked together for an average of 20 years.

Nevertheless, we continue to incorporate new ideas to make the process more efficient and repeatable over time. With the growth of assets, we have enhanced our research team and included more specialization of sectors.

Read the full Q&A

Past performance is not a guarantee of future results.

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.