As of May 1, 2022 Zeo Joined Osterweis



Delivering Consistent Risk Profiles

Investment Philosophy

Our primary goal is to deliver best-in-class credit portfolios that can serve both traditional and sustainable mandates without requiring either to compromise their primary objectives: performance and progress. Our standards are high, and few bonds make it into client portfolios. We execute by being:

Credit Specialists

We seek investment opportunities in less-trafficked corporate debt and conduct deep fundamental credit research to mitigate volatility.

Sustainability Team

Our investment process recognizes that ESG factors are credit factors; impacting a company’s creditworthiness like fundamental factors.

Risk Managers

We create credit strategies that help investors diversify risk in their fixed income portfolios without compromising their performance goals.

Investment Process

We look to uncover overlooked corporate debt with:

  • Strong quantitative credit metrics,
  • Defensive characteristics, and
  • Demonstrable sustainability practices.
  • Comprehensive Idea Generation: Internal and external flow

  • Highly selective: 95% of the high yield universe filtered out

  • Volatility Mitigation: Proactively exclude vice industries

  • Minimum Viability: Leverage, cashflow, liquidity, yield, duration

  • Fundamental Strength: Qualitative analysis

  • Resiliency Factors: Quantitative analysis

  • Long-Term Priorities: Sustainability analysis

  • Undervalued Opportunities: Selective entry points

  • Risk-Managed: No one risk overwhelms the portfolio

  • Buy, Hold, Evaluate: Rarely trading but constantly reconfirming

  • Consistent Conviction: Each company must stand on its own merit

Sustainability Integration

We believe not being bad is not good enough. Effective ESG integration into the credit research process is essential for a truly sustainable portfolio. A creditworthy business operates in a long-term sustainable way. Contaminated land, employee safety claims or an unfunded pension liability is viewed through the same lens as we evaluate financial risks, like leverage, cashflows and liquidity. This effort is native to our fundamental investment process and differentiates us from traditional ESG—it is not an overlay, a screen or an after-the-fact green wash.

We evaluate companies on our proprietary Sustainability Spectrum®, track them in our in-house Green SlateTM software and engage them directly to discuss opportunities for improvement. A creditworthy issuer may be one with sustainable strength relative to peers or one that is making visible progress toward appropriate sustainable practices, and we take our role in that progress seriously. Our dependable approach to credit investing ensures that every holding in our portfolio is proactively selected to meet both our fundamental and sustainability standards.

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