Constrained fixed income

Successfully managing assets for insurance companies requires specific skills and proven experience. Advantus offers both. We blend investment expertise and in-depth knowledge of today's insurance industry with the best, client-focused service in the industry.

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Constrained fixed income investment philosophy

We believe building portfolios that provide strong performance over the long term requires:

• Focusing on investment grade securities across all sectors with enhanced return potential
• Seeking excess yield through structure, liquidity or credit trade-offs, rather than interest rate risk
• Building quality portfolios with stable cash flows
• Actively managing risk
• Consistently adding value through security selection:
  • Build portfolios one security at a time
  • Use fundamental analysis to identify relative value
• Focusing on risks that can be underwritten; not timing the market

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Constrained fixed income investment process

Advantus builds portfolios one security at a time using a fundamental, bottom-up approach that identifies relative value through research and analysis.

We select securities one bond at a time by:

• Finding "sweet spots" in the market
• Looking for bonds with a yield advantage
• Looking for bonds with opportunities for superior total returns

Our fundamental research and analysis is underscored by:

• Analysis of financial ratios, trends, products and management quality
• Utilizing relative industry comparisons
• Performing simulation and stress testing of individual portfolio holdings

We seek relative value by:

• Looking for the best bonds in the market based on value
• Asking if the price is right when compared to the risks
• Comparing to investments currently in the portfolio

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Constrained fixed income products

Advantus offers insurance companies three asset management options:

Yield Enhancement accounts to meet the following performance goals and risk control objectives:

• Historical, consistent outperformance of the benchmark*
• Stable cash flows
• A yield pick-up of 20-70 basis points versus comparable public bonds
• Additional credit protections

Core Insurance accounts uniquely tailored to client liability needs with the following goals and priorities:

• Yield focus utilizing NAIC 1 and 2 rated bonds
• Stable cash flows
• Consistent investment income
• Strong total returns over the benchmark*

Full Duration accounts offering the following investment features:

• Unconstrained total return for our less constrained clients
• Capitalizing on sector inefficiencies and less understood credits
• Fundamental, research driven investment process
• Favors clients where taxation is either not an issue or less of a consideration

* Past performance is not indicative of future results.
The benchmark will vary by portfolio or client.

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Constrained fixed income investment team

The Advantus insurance company investment team leverages an impressive array of experience and expertise in areas particularly suited to institutional-style investing.

Our team of more than 30 seasoned investment professionals—portfolio managers, analysts and traders—operates most effectively by working together. They carefully scrutinize and evaluate the investment grade fixed income market to find relative value among all credit and asset sectors.

» Marilyn Froelich, CFA
» Ted Hoxmeier, CFA
» Joe Gogola, CFA
» Kathy Parker, CFA
» Ann Stanina

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