We believe the experience of our investment professionals is the cornerstone of our success. We have a disciplined approach to investing that has not changed over the years. Our approach to investing has remained consistent when others have chased the “hot” style of the moment. The research performed by our professionals adds value to the performance of our product, while our tactical approach to investing allows us greater latitude within the sectors of the market to find value.

Fixed Income Philosophy

Boyd Watterson Asset Management is committed to pursuing superior fixed income results through active portfolio management. The foundation of our investment philosophy is based on fundamental economic and credit research conducted by highly experienced investment professionals. It is our belief that above-average returns can be achieved through duration management, exploiting changes in spread relationships and identifying undervalued securities while maintaining a high-quality, liquid portfolio.

Using a top-down investment process, senior members of our portfolio management team formulate an economic outlook that leads to strategy assumptions. The assumptions outline the likely behavior of interest rates, trends in volatility and the implications for spread relationships among the major sectors of the bond market. The team then establishes target ranges for the various sectors and across the maturity spectrum. This process maximizes potential return within the context of client guidelines, which is the goal of our fixed income strategy.

Boyd Watterson’s focus is on high-quality, liquid fixed income securities. Usually, our portfolios allow marketable securities rated ‘BBB’ or better. This ensures a safe, diversified investment portfolio allowing the manager to raise funds for distributions when needed. 

 

Equity Philosophy

Long–term success in stock market investing is the pursuit of two objectives: superior capital appreciation and higher-than-average dividend income. Evidence has shown that these two objectives are not mutually exclusive. Rather, investing primarily in low-multiple, high-dividend-paying stocks has proven to be a consistently rewarding approach.

Our philosophy emphasizes solid companies and creating a portfolio that in aggregate has a below-market price/earnings ratio and above-average dividend income (compared to the S&P 500 Index). Our selection process is enhanced through in-depth research that is focused on quality, defined as predictability of operating growth and financial strength. Our internal research is supplemented by Wall Street research. In addition, we must have a high degree of confidence in a company’s management. 

The Boyd Watterson Conservative Value Equity Approach also seeks to take advantage of the changing dynamics in the economy and financial markets. During the past 25 years economic cycles have shifted toward longer expansions and shorter recessions. Our investment decisions are based on long-term projections of economic growth and earnings cycles. The fund will seek to limit exposure to companies that have short-term earnings cycles (i.e., deep cyclical industries) in favor of investments with consistent earnings growth and a solid management team. This long-term orientation is based on the belief that above-average returns can be achieved through superior insight into the sector and security selection process