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U.S. Core Plus Fixed Income

The strategy seeks enhanced returns through a risk-managed approach that emphasizes core holdings in government, corporate and mortgage securities complemented by off-benchmark issues.

Strategy Inception

2002

Strategy AUM (USD)

$2.68 B

As of 10/31/2024

  1. Enhanced Core Portfolio

    The strategy invests in an investment-grade, sector-diversified portfolio that is complemented by non-investment grade and off-benchmark issues.

  2. Research-Driven Process

    Fundamental research informs security selection, while a macro overlay and quantitative tools drive sector allocations and inform risk-budgeting.

  3. Pursuing Risk-Managed Alpha

    The strategy's select investments in high-yield, emerging market and non-dollar issues—combined with its emphasis on risk—seek to generate consistent alpha.

Investment Outlook

View our latest Investment Outlook for a concise, easy-to-scan overview of current opportunities and risks created by today's global markets.

Strategy Facts
Inception Date
01/01/2002
Total Assets
$2.68 B USD
As of 10/31/2024
Benchmark
BB US Agg Bond
Target Excess Return
1% - 1.5%
Over a standard market cycle
Target Tracking Error
2% - 3%
Over a standard market cycle
Investment Universe
U.S. Intermediate Duration Fixed Income

Available Vehicles

U.S. and certain other countries

Institutional Strategy

Only in the U.S.

Mutual Fund

Risk Guidelines
Maximum Below Investment Grade
35%
Regional Exposure
±20%
Of index
Issuer Limits
5%
Per issue excluding government securities and government agency mortgages

We believe consistency in risk-adjusted results can be achieved through a diversity of active positions that seek to exploit inherent inefficiencies in the bond market. We rely on the power of fundamental research—augmented by quantitative methodologies—to seek consistent excess returns over a full market cycle. 

We pursue opportunities by following a systematic, repeatable process that’s driven by fundamental research. This research-driven approach is complemented by proprietary quantitative models and tools designed to increase the team’s efficiency.

Continuous Risk Management circles around Outlook, Asset Allocation, and Security Selection.

Outlook

Integrates analysis of economy, markets and policies to establish top-down views on global economic growth, inflation, central bank policies and interest rates

Asset Allocation

Considers economic fundamentals and technical rich/cheap sector analysis to determine relative value

Expected return scenario calculations converted to information ratios and ranked by relative attractiveness

Security Selection

Analysts identify attractive issues through deep fundamental research based on sector-specific analytic frameworks

Portfolio managers, analysts and traders collaborate to manage sector exposures, issuer weights and security selection

Risk Management

Risk Management team independently reviews portfolio holdings’ compliance with risk budgets

Proprietary tools help test and monitor portfolio exposures, apply scenario analysis and evaluate potential trades

  • Managed by a veteran team who average more than 30 years’ experience

  • Features dedicated expertise in government, corporate and securitized markets

  • Includes specialists in top-down macroeconomic analysis and quantitative methodologies

Portfolio Managers

Charles Tan avatar
Charles Tan

Co-Chief Investment Officer

Global Fixed Income

Firm Start

2018

Industry Start

1994

Robert Gahagan avatar
Robert Gahagan

Senior Vice President

Senior Portfolio Manager

Firm Start

1983

Industry Start

1983

Paul Norris avatar
Paul Norris

Vice President

Senior Portfolio Manager

Firm Start

2023

Industry Start

1992

Team Facts
Average Industry Experience
30 Years
Location
New York, NY - Santa Clara, CA

Cross-Discipline Support

Client Portfolio Managers
Dedicated Trader
Global Analytics



Takeaways

Enhanced core portfolio

Research-driven process

Pursuing risk-managed alpha

Composite Performance in USD (%)

1 Month
YTD
1 Year
3 Year*
5 Year*
10 Year*
U.S. Core Plus Fixed Income (gross)as of 10/31/2024
-2.64
2.67
12.61
-2.39
0.44
2.24
U.S. Core Plus Fixed Income (net)as of 10/31/2024
-2.67
2.39
12.23
-2.67
0.20
2.04
BB US Agg Bondas of 10/31/2024
-2.48
1.86
10.55
-2.20
-0.23
1.49

*Annualized

Data reflects past performance. Past performance does not guarantee future results. The value of investments may fluctuate. Data assumes reinvestment of dividends and capital gains.

Contact Us

For more information about our global fixed income strategies

Sources: Bloomberg Index Services Ltd, FactSet

This is marketing material. This information is intended to be general in nature and is not personal financial product advice. Any advice contained here is general advice only and has been prepared without considering the investment objectives, financial situation or particular needs of any particular person. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your investment objectives, financial situation and needs. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. American Century nor any of their related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accept any liability to any person who relies on it.

Risk-managed does not mean no risk.