Fixed Income Solutions
Overview of Our Fixed Income Investment Approach & Philosophy
At U.S. Bancorp Asset Management, we deliver fixed income solutions designed to help institutions meet their investment objectives with confidence, clarity, and discipline. Our approach is rooted in a deep understanding of each client’s unique investment policies, risk parameters, and liquidity needs—an approach that informs how we structure, manage, and monitor every portfolio we oversee.
Through customized Separately Managed Accounts (SMAs), we construct tailored fixed income portfolios built to preserve capital, enhance liquidity, and generate return commensurate with risk. Each portfolio is individually structured and wholly owned by the client, enabling precise alignment with investment guidelines, cash‑flow requirements, and long‑term strategic goals. Our teams actively evaluate market dynamics, sector opportunities, and credit conditions to identify potential sources of value while maintaining rigorous risk management and adherence to client policy constraints.
Our fixed income capabilities span a wide range of strategies designed to meet the distinct needs of today’s institutional investors—including taxable, tax‑efficient, tax‑exempt, and government‑focused solutions. Whether seeking disciplined short‑duration liquidity management, broad‑based core strategies, or customized credit exposures, clients gain access to an investment team experienced in navigating diverse market environments and committed to delivering solutions that stand the test of time.
With more than four decades of fixed income experience behind us, our process combines institutional‑scale research, active portfolio construction, and continuous monitoring of regulatory, policy, and market developments. This disciplined structure enables us to help clients implement investment programs that prioritize safety, liquidity, and yield—reinforcing our role as a trusted partner for organizations across the corporate, insurance, not-for-profit, and financial sectors.
Our Three Core Fixed Income Solutions
As we partner with institutions to build fixed income portfolios aligned with their priorities of capital preservation, liquidity, and risk‑aware return, we recognize that every organization operates within its own set of time horizons and investment objectives. To meet those needs, our fixed income platform is structured around three core solution types. These strategies allow investors to match their investment approach to the role each pool of capital plays within their broader financial picture, whether prioritizing immediate liquidity, supporting short‑ to medium‑term funding, or seeking long‑term total return.
Cash & Enhanced Cash
Our Cash & Enhanced Cash solutions are designed for institutions that require ready access to capital while still seeking incremental return opportunities within very short time horizons. These portfolios emphasize high‑quality, highly liquid securities and use careful selection across maturities, sectors, and issuers to manage risk while enhancing yield relative to traditional cash holdings.
They are well‑suited for organizations with operational cash, near‑term obligations, or seasonal liquidity needs—including Higher Eds, Healthcare Systems, Not-for-Profits, and Corporations. By maintaining stability and prioritizing liquidity first, these strategies help clients support day‑to‑day funding while improving the productivity of short‑term balances.
Short to Intermediate Duration
Our Short to Intermediate Duration strategies are built for institutions seeking an attractive balance between capital preservation and return potential over a modest time horizon. These portfolios draw from a broad range of investment‑grade sectors and aim to outperform high‑quality benchmarks with lower volatility, using active sector rotation and disciplined credit selection to capture relative‑value opportunities.
They are ideal for organizations managing reserve funds, stabilization accounts, or multi‑year budgetary needs—where extending duration modestly can improve income without taking on undue risk. Investors who want flexibility, diversification, and policy‑aligned structure often use this strategy as a bridge between liquidity portfolios and long‑term core allocations.
Core Aggregate
For institutions with a longer investment horizon and a desire for total return that balances income generation with capital appreciation, our Core Aggregate strategies provide broad exposure across the U.S. investment‑grade fixed income universe. These portfolios seek to outperform their benchmarks across full market cycles by leveraging strategic sector allocation, rigorous credit research, and tight risk controls.
Core Aggregate solutions are used by institutions such as endowments, foundations and corporate investors aiming to maintain long‑term purchasing power while managing volatility. With diversified exposure and disciplined active management, these strategies anchor the fixed income portion of a multi‑asset portfolio and support long‑term financial objectives.
Liquidity Solutions
Money Market Funds
USBAM is the adviser to six 2a-7 registered money market mutual funds that seek to provide investors a high-quality liquid asset. Investors may choose from a broad range of investment choices and share classes that can be practical alternatives or complements to a cash portfolio.
Local Government Investment Pools
Local Government Investment Pools are serviced by our subsidiary, PFM Asset Management.