Investment Strategies
AAM works with each client to develop a comprehensive portfolio strategy. We execute this approach across a wide range of asset classes and investment styles.
Tailored, Disciplined Fixed Income Solutions for Insurers
We design fixed income portfolios tailored to each insurance client’s liability profile and investment goals. Our portfolios emphasize reliable income, strong credit quality, and stable cash flows.
We actively manage portfolios—not simply buy and hold—using a disciplined, yield-focused approach that aims to minimize credit impairments and deliver competitive returns across market cycles. Built specifically for insurers, our strategies leverage the skills and experience of our team with rigorous risk control to help clients meet their long-term objectives.
Our key fixed income principles:
- Liability-Driven Duration: Duration targets are set based on each client’s liability structure and surplus position.
- Laddered Cash Flows: Portfolios are structured across maturities to support liquidity and reinvestment.
- No Rate Speculation: We avoid active interest rate bets—focusing on portfolio structure, not market timing.
- Prudent Call Risk Management: Call risk is actively monitored and managed to protect portfolio integrity.
- Risk-Adjusted Income Focus: We seek to enhance income through smart sector selection, powered by our experienced analyst teams.
Specialty Asset Solutions can Enhance Yield and Diversification
AAM provides clients access to specialized investment partners outside traditional fixed income to help enhance diversification and returns. Our portfolio team works closely with each client to evaluate these opportunities and set allocation targets aligned with their investment profile and surplus goals.
Equities
AAM captures equity market returns through a liquid, low-cost ETF strategy—eliminating the need for active management. This simple, efficient approach gives insurers reliable exposure, periodic rebalancing, and streamlined reporting.
Commercial Mortgage Loans (CMLs)
Convertibles
AAM’s convertible strategy, managed with Zazove Associates, gives insurers equity upside with bond-like downside protection. Using a proprietary model, they target undervalued bonds with attractive risk/return profiles.
High Yield Bonds
AAM, in partnership with Muzinich & Co., provides access to high yield and bank loan strategies that can enhance income and diversify credit exposure. High yield bonds offer equity-like returns with lower volatility, complementing core fixed income allocations for insurers.
Private Credit
AAM partners with Securian Asset Management to offer private placements that can often achieve higher returns than comparable public bonds. These securities provide structural protections, diversify portfolios, and give insurers access to issuers outside the public markets.