The Manager of the Decade accolade from PSN Top Guns underscores Penn Mutual Asset Management’s (PMAM) commitment to stringent performance criteria, showcasing sustained impressive results over the past 10 years. Following the reception of this esteemed honor for our Core Plus Bond Strategy, we engaged in a discussion with our portfolio management team to reflect on its significance and the implications it holds for our team, firm and investors.
1. Congratulations on this impressive recognition for the Core Plus Bond Strategy. What does this acknowledgment signify for you both as a team and as a firm?
PSN’s selection of PMAM for Manager of the Decade in its Core Plus Bond category represents a significant achievement for our entire team. The consistent level of excellence required to win this award is a testament to the quality and dedication of our professionals. The past decade witnessed numerous dramatic shifts across the financial markets including the steepest bond bear market on record in 2022. The PMAM team has demonstrated a proven ability to effectively navigate the rapidly changing investment landscape and deliver value-added performance for our clients.
2. What, in your view, were the primary factors that fueled the successful 10-year track record?
PMAM’s successful investment track record has been driven by numerous factors; however, our team is at the forefront. Our collaborative culture and regular communication supports the idea generation and decision-making necessary to deliver consistently solid performance. In addition, our relative value-based investment philosophy and process allows PMAM to capitalize on what we believe to be the most attractive opportunities across and within the fixed-income asset classes. Finally, our size enables PMAM to be more nimble and opportunistic than many of our competitors when sourcing investment opportunities.
3. What makes this recognition significant for investors? How does it underscore our distinctive qualities compared to other asset managers?
Investors have always placed value on asset managers with the ability to consistently and reliably generate value-added performance. PMAM differentiates itself by more than just on the basis of top-tier investment results but also offers a client-centric approach where clients have direct access to our team of investment professionals. The benefits of mutuality — including our commitment to serve the best interests of our clients and focus on the long-term — are shared with our parent company, The Penn Mutual Life Insurance Company.
4. Given the uncertainty on inflation, interest rates and the presidential election, what is your outlook for the remainder of 2024, and how is the Core Plus Bond Strategy positioned to outperform the benchmark?
One of PMAM’s core investment philosophies — diversification is the best form of risk management — has been and will remain a key driver for the team’s ability to generate strong performance through periods of volatility. In the current environment, we are seeking to find the best relative value opportunities in the high quality securitized credit sectors relative to the corporate credit markets. We are also taking advantage of the prolonged Treasury yield curve inversion (i.e. short-term interest rates higher than long-term interest rates) and finding the best total return opportunities in short- to intermediate-duration fixed-income assets.
Visit our website here to learn more about the Core Plus Bond Strategy.
For more information about the Strategy, contact Chris Fanelli, managing director, business development, at fanelli.chris@pennmutualam.com or (609) 306-7034.
To download the Manager of the Decade - Portfolio Management Q&A, please see the attachment below. To view the Manager of the Decade Announcement in its entirety, visit here.
About PMAM
With approximately $34 billion in assets under management as of April 30, 2024, Penn Mutual Asset Management ("PMAM") is an institutional asset management firm located just outside of Philadelphia, PA that has been offering investment solutions and client-focused services since 1989.
Follow the latest news and insights from the PMAM investment team at The Long View, as well as on LinkedIn and X (formerly known as Twitter).
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Benchmarks or indices are derived using universes of PSN separately managed accounts, ("SMA Indices"). Any SMA Indices should not be deemed an offer to sell or a solicitation of an offer to buy shares of any products that are described herein. Index or performance returns do not reflect any management fees, transaction costs or expenses. One cannot invest directly into an index.
PSN Top Guns Manager of the Decade uses the following criteria:
The PSN universes were created using the information collected through the PSN investment manager questionnaire and use only gross of fee returns. PSN Top Guns investment managers must claim that they are GIPs compliant. Mutual fund and commingled fund products are not included in the universe. Products must have an r-squared of 0.80 or greater relative to the style benchmark for the latest ten year period. Moreover, products must have returns greater than the style benchmark for the latest ten-year period and also standard deviation less than the style benchmark for the latest ten-year period. At this point, the top ten performers for the latest ten-year period become the PSN Top Guns Manager of the Decade.
R-Squared (sometimes referred to as the coefficient of determination) measures the reliability of the statistical estimates of alpha and beta as a linear function of the market. A product with a high R-Squared can generally have most of its variance explained by the variations in the benchmark index. As a consequence, the estimates of alpha and beta can be used with confidence.
PSN Top Guns relies on data provided by third-party sources. Because of the possibility of unintended human or mechanical error that might occur, PSN does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.
