Securitized Opportunities Strategy

The strategy emphasizes moderate to higher risk opportunities within securitized products. Management employs a fundamental, relative-value approach that seeks alpha by strategically allocating between two sources: sector allocation and security selection. A focus on non-index sectors typically provides for more stable duration and higher yield than traditional MBS-oriented strategies. Management favors longer holding periods, which can enable the realization of the yield advantage over the benchmark.

Focus on moderate to higher risk/return opportunities within securitized products
High spread/short spread duration focus reduces volatility
Longer holding periods enable realization of yield advantage

Securitized Opportunities Commentary (PDF)

Securitized Opportunities Fact Sheet (PDF)

Securitized

STYLE

Bloomberg US Mortgage Backed Securities Index

BENCHMARK

October 1, 2011

INCEPTION

$678 Million

ASSETS UNDER MANAGEMENT

As of 9/30/2024

US Securitized Fixed Income - Non-Traditional

EVESTMENT UNIVERSE

Separate Account

ETF

INVESTMENT VEHICLES

Philosophy

We believe Securitized products offer a superior risk/return profile versus competing fixed income assets. Securitized products tend to have complex structures and uncertain cash flows, offering potential for inefficient markets and attractive risk-adjusted returns. Strong front-end due diligence and back-end surveillance processes are necessary to navigate markets and manage risk. Sector complexity fosters a smaller yet sophisticated investor base, resulting in a favorable market dynamic and volatility profile over time. Emphasizing the income component of return and focusing on high spread/shorter spread duration securities supports fundamental investing with a longer-term horizon.

Portfolio Construction

Emphasize non-index securities
Invest across capital structure with emphasis on higher yielding opportunities
Emphasize risk premium relative to default risk
Model securities using proprietary and industry standard resources
Number of issues: Typically 50-100
Duration: Typically Benchmark +/- 2.0 years
Below IG: Typically <25%
Non-U.S.: Typically <5%

Management Team

Scott D. Weston

Managing Director, Senior Portfolio Manager

Career Summary
Countrywide Investments
Midwest Group of Funds

Education
BA - University of Utah
MBA - University of Cincinnati

Meet Scott Weston

Richard V. Schneider

Vice President, Senior Portfolio Manager, Securitized Products

Career Summary
Mesirow Financial
Loop Capital Markets
Lehman Brothers Asset Management
Lincoln Capital Management

Education
MBA - University of Notre Dame
BS - University of Notre Dame

Meet Richard Schneider

Brent A. Miller, CFA

Vice President, Senior Portfolio Manager, Securitized Products

Career Summary
Integrity Companies

Education
BS - University of Evansville

Meet Brent Miller

Laura L. Mayfield

Assistant Vice President, Senior Portfolio Manager

Career Summary
Western & Southern Life Assurance Company

Education
BA - Olivet Nazarene University
MBA - Xavier University

Meet Laura Mayfield

Meet Fixed Income Team

Resources

Securitized Opportunities Commentary (PDF)

Securitized Opportunities Fact Sheet (PDF)

Connect with Fort Washington

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