CM Fixed Income

Strategy Facts

Inception Date January 2002 
Minimum Investment $1 Million
GIPS® Compliance Contact Us
Literature Contact Us
Portfolio Managers Arnold Van Den Berg
James D Brilliant, CFA

Our Commitment

It is one of our core beliefs that as the advisor, we invest our own money in the same investments as our private clients and mutual fund shareholders. Therefore, our officers, employees, and their families have a substantial amount, if not all, of their investments in one or more of the private account and mutual fund strategies that we manage.

Strategy Name

CM Fixed Income

Strategy Type

Absolute Total Return

Objective

Maximize Long-Term Total Return, Complemented by Prudent Investment Management Designed to Manage Risk and Protect Investor Capital

Investment Strategy

  • Unconstrained by market benchmarks, this absolute-return strategy has the flexibility to invest in opportunities across the fixed-income landscape. This includes securities of all credit ratings.
  • While maintaining investment flexibility, this strategy primarily seeks out U.S. investment grade corporate securities that we believe are selling at wide spreads (i.e. discounts) relative to U.S. Treasury securities.
  • While maintaining investment flexibility, this strategy will also focus on U.S. Treasury securities of all durations.
  • The strategy will maintain maximum flexibility with the maturity structure of the portfolio.
  • Bottom-up, fundamental investment evaluation will drive the portfolio investments and resulting portfolio allocation.
  • This strategy may hold high levels of cash equivalents for extended periods of time if we believe cash equivalents represent a greater or equal value relative to alternative investments.
  • While this strategy will primarily invest in individual debt securities, it may also invest in a variety of security types which include, but are not limited to, mutual funds, exchange-traded funds ("ETFs"), and closed-end funds.

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Century Management ("CM") is an independent registered investment adviser.

Accounts included in this fixed income composite typically invest in taxable fixed income securities using a value based investment philosophy. However, clients may request a portfolio with only tax-free fixed income securities. Portfolios in this composite are not constrained by credit quality and at any given time may be more heavily weighted to one level of credit quality issue over another. In addition, portfolios in this composite are not limited to any one type of fixed income security. With that said, investments will most often be made in U.S. Treasury securities and U.S. corporate bonds of varying credit quality. Furthermore, there are times when portfolios in this composite may be invested in cash and cash equivalent positions for extended periods of time.

Credit quality reflects the highest credit rating assigned to individual holdings of the composite by the Moody's and S&P ratings agencies. These ratings are subject to change at any time without notice. No judgment or warranty is made with respect to the accuracy, timeliness or suitability of the ratings provided by these ratings agencies. The composite is not rated by any ratings agency and no credit rating for the composite is implied.

The value of most fixed income securities are impacted by changes in interest rates. Bonds with longer durations tend to be more sensitive and more volatile than securities with shorter durations; bond prices generally fall as interest rates rise. Other key risks include but are not limited to credit risk, liquidity risk, prepayment risk, extension risk, management style risk, business risk, and sector risk.

Cash & Cash Equivalents reflects money market funds and U.S. Treasury Bills. Due to rounding, quality, maturity, sector, and duration totals may not equal 100.00%. Individual account valuation metrics and characteristics may differ from those of the composite.

CM claims compliance with the Global Investment Performance Standards ("GIPS®"), examined from the strategy's inception, January 31, 2002, through June 30, 2014.

This performance was prepared by CM and presented to and examined by Ashland Partners & Company, LLP. Ashland Partners continues to verify the compliance of CM with the requirements of GIPS® on a firm-wide basis each calendar quarter.

This GIPS® verification and performance examination is generally one to two quarters in arrears of the most recent performance information presented. Thus, while performance figures shown after the verification date are believed to be accurate, they are preliminary and have not yet been examined. To receive a complete list and description of the Firm’s strategies or a GIPS® compliant presentation, please contact us at 1-800-664-4888, or write to us at 805 Las Cimas Parkway, Suite 430, Austin, Texas 78746.