The Westwood Trust International Fixed Income strategy:
- Invests in bonds with the highest real yields.
- Manages currency exposures in order to protect principal and enhance returns.
- Patiently rotates among countries.
- Controls risk by purchasing undervalued securities.
- Top-down, value driven process for structuring the portfolio
- Real (inflation–adjusted) yield is the primary measure of value
- Currency valuation is next in importance – the strategy focuses on appreciating, undervalued currencies and overvalued currencies that can be hedged
- Other considerations:
- Inflation trends
- Political risks
- Monetary trends
- Business cycle and liquidity measures
- Investments are typically concentrated in 8-14 countries that appear to offer the best total return potential
Westwood Trust’s International Fixed Income strategy is sub-advised by Brandywine Global, Philadelphia, PA.
The portfolio is managed by:
- Stephen S. Smith, Managing Director & Portfolio Manager
- David F. Hoffman, CFA, Managing Director & Portfolio Manager
- Jack P. McIntyre, CFA, Portfolio Manager, Senior Research Analyst