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.

Philosophy I Process I Products

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

Philosophy I Process I Products

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

Philosophy I Process I Products

Constrained fixed income products

Advantus offers insurance companies three asset management options:

Private Placement 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.