Investment Overview

We employ a global opportunistic approach and broaden the opportunity set to include less efficient out-of index sectors
We believe active risk drives excess returns so we typically employ a wider than average tracking error range to seize the potential of higher returns
Integrates top-down macroeconomic analysis with bottom-up security selection to mitigate systematic risks while exploiting idiosyncratic opportunities
Target excess return: 100–200 bps
Target tracking error range: 200–400 bps

Portfolio Construction

Risk budget and active management skill set emphasize security selection as primary driver of returns
Below investment grade rated securities are typically less than 35%
Non-US dollar denominated securities are typically less than 25%
The effective duration range is typically +/- 2 years to the benchmark
Risk is decomposed on both an absolute and relative basis

Investment Team

Thomas H. Luster, CFA
Co-Director, Diversified Fixed Income
26 years of industry experience
21 years at Eaton Vance
BS, George Washington University
MBA, University of Chicago
Kathleen C. Gaffney, CFA
Co-Director, Diversified Fixed Income
31 years of industry experience
3 years with Eaton Vance
BA, University of Massachusetts, Amherst
Bernard Scozzafava, CFA
Director of Diversified Fixed Income Quantitative Research, Portfolio Manager
32 years of industry experience
10 years with Eaton Vance
BA, Hamilton College
MS, Massachusetts Institute of Technology
Matthew T. Buckley, CFA
Portfolio Manager
11 years of industry experience
11 years with Eaton Vance
BA, College of the Holy Cross
MBA, Babson College

Benchmark

Bloomberg Barclays U.S. Aggregate Bond Index