Investment Process
Dana’s Limited Volatility Strategy securities mix is unique. We use U.S. government and government agency-backed, variable or floating rate securities as an integral part of the portfolios. These securities have coupon rates often in excess of other government and most corporate high-grade bonds. The automatic adjustment features of these unique bonds soften interest rate volatility. This Strategy requires less emphasis on interest rate anticipation than many traditional styles of fixed income management. We believe that utilizing these high-quality, variable rate bonds in conjunction with shorter maturity, fixed rate bonds will allow us to achieve out clients’ investment objectives with little of the normal credit and interest rate risk.
Portfolio Composition
Dana primarily uses U.S. government and government agency-backed variable-rate securities as the major asset class in the Dana Limited Volatility Strategy. These securities have coupon rates generally in excess of other government and most high grade corporate bonds exhibiting similar duration.
