PT Asset Management presents their distinctive approach to bond investment through their proprietary “Shape Management” strategy, aiming to enhance the way bonds are assessed and incorporated into portfolios. The strategy is based on the belief that traditional fixed income metrics fall short in accurately evaluating the risk-return dynamics of bonds. By adopting a deeper analytical framework, PT Asset Management seeks to optimize value creation within their bond investments. This involves dismissing conventional wisdom that accurate predictions of interest rate movements are possible, challenging the sufficiency of duration as a comprehensive risk measure, and critiquing the reliance on yield as a proxy for total return.

“Shape Management” actively utilizes what is known as the knowability of bonds—predictable cash flows and maturity—to assess and project potential outcomes across varying interest rate scenarios. This process enables the creation of diversified bond portfolios strategically designed to enhance value over time. PT Asset Management has been implementing this approach successfully for over 15 years across all their investment vehicles, including their latest product, the Short-Term Bond Fund (STBF). Like their other offerings, STBF is driven by this strategic and efficient method, emphasizing their commitment to innovative bond management that transcends traditional investment techniques.