Mellon’s US High Quality Long Corporate Beta strategy is designed to provide a cost-effective, highly liquid, seamless solution to pension liability hedging. The strategy targets the 20-year maturity sector and can be combined with our with our High Quality Corporate Bond strategy to help clients customize exposure to their specific liability profile.
The strategy is designed to provide consistent beta exposure to the high-quality corporate bond universe, while aiming to minimize the risk from downgrades and defaults.
Mellon utilizes a sampling approach that seeks to diversify across issuers and sectors. Portfolio managers use a proprietary credit model to inform their sampling process and control portfolio risk. The credit model provides a systematic framework for evaluating exposure to corporate issuers by seeking to identify bonds that are more likely to underperform or potentially be downgraded. Finally, it utilizes our cutting-edge trading innovation to cost-effectively source diversified baskets of bonds through credit portfolio trading.
Please note that all investment strategies involve risk.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.