(Video: Mimi Productions)
Today, portfolio managers tend to concentrate on short-term performance that “has a tendency to hit home runs.” But Pacific Income Advisers is interested in “producing results over time.” The PIA Limited Duration MACS strategy, which won the 2017 SMA Managers of the Year in the fixed income category, has a 3.80% 10-year annualized gross return.
Dan Meyer, co-portfolio manager of the strategy, said the fund takes on a traditional fixed income role; that is, to prop up the portfolio “when the market goes sideways.” He said his team embraces that role, realizing the equity market usually will outperform the portfolio. “We’re not trying to beat the equity market, but we play an important role in overall asset allocation.”
--- Read The Long Game: 2017 SMA Managers of the Year for more from this year's winners.