DAMI will achieve its objectives by investing in a portfolio of fixed income instruments issued by North American governments, financial institutions, and corporations. DAMI will utilize a combination of investing strategies, including outright credit trading, relative value credit trading, outright rate trading, relative value rates trading, and duration neutral portfolio construction.
Outright credit trading: These strategies involve purchasing or selling a short credit instrument based on a view of the direction of the credit spread and/or price of the security.
- Relative value credit Trading: These strategies involve purchasing one security and selling short another security that’s expected to benefit from the differential net return of the securities.
- Outright rate trading: These strategies involve either purchasing or selling short government bonds and/or other interest-rate related instruments based on a view as to the direction of prices of these instruments.
- Relative value rate trading: These strategies involve purchasing one security and selling another security short to create a position that is focused on idiosyncratic movements between the individual securities.
- Duration neutral portfolio construction. This strategy involves the construction of short and long positions, having a duration close to zero or close to benchmark to insulate the portfolio from interest rate movements.
Low portfolio volatility
Low correlation with other asset classes
Capital preservation with growth