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Bank Loan

Summary

Summary

HIGHLIGHTS


  • Managed by a firm with more than 45 years of experience in leveraged credit investing
  • Collaborative team structure leverages collective firm-wide insights
  • Investment process combines top down macro views with bottom up security selection
  • Employs both fundamental credit research and quantitative valuation analysis
  • In-depth covenant, collateral, and structural analysis are key components of the process
  • Multi-dimensional risk management system limits industry and issuer concentration 

KEY FACTS as of 05/31/2019


Strategy Inception Date
Dec 2007
Strategy AUM
$12.3 B
Benchmark
CS Leveraged Loan Index
eVestment Universe
US Floating-Rate Bank Loan Fixed Income

PORTFOLIO PARAMETERS


  • Invests primarily in senior secured floating rate bank loans (80% minimum)

  • May include tactical allocations of up to 20% in any combination of second lien loans, unsecured loans, and other types of debt or short term investments. 

  • May include up to 25% in loans and securities of non-U.S. domiciled borrowers

  • Invests substantially all assets in the U.S. dollar-denominated loans and securities; non-U.S. dollar investments are typically hedged back to the U.S. dollar

  • Maximum of 25% in any one industry

Vehicles


  • This strategy is available as a:
  • Separate Account
  • Commingled Trust
  • Mutual Fund
  • Cayman Fund

PORTFOLIO MANAGERS

Jeffrey D. Lapin
Jeffrey D. Lapin, J.D.

Partner & Portfolio Manager

22 Years of Industry Experience

Steven F. Rocco
Steven F. Rocco, CFA

Partner & Director of Taxable Fixed Income

18 Years of Industry Experience

Robert A. Lee
Robert A. Lee

Partner & Chief Investment Officer

28 Years of Industry Experience

Kearney Posner
Kearney M. Posner, CFA

Portfolio Manager

18 Years of Industry Experience

Supported By 66 Investment Professionals with 15 Years Avg. Industry Experience

Related Content

Gauging the Opportunity in Short Duration Credit
January 28, 2019

Short-term securities such as corporate bonds, ABS, and CMBS, recently offered yields near multi-year highs, with lower volatility than core bonds.

Volatility Worries? Consider This Diversified Approach to Income
November 26, 2018

A strategic combination of ultra-short and short-term fixed-income securities, along with bank loans, may be an attractive option for income and total return amid market turmoil.

Portfolio

Portfolio

Portfolio Breakdownas of 05/31/2019

Type Portfolio Index
Bank Loans 92.1% 100.0%
High Yield Bonds 4.9% -
ABS 0.9% -
Equity 0.3% -
Investment Grade Bonds 0.0% -
Cash 1.8% -

Credit Quality Distributionas of 05/31/2019

Type Portfolio Index
BBB 1.4% 0.4%
BB 21.6% 28.1%
B 66.4% 61.1%
<B 9.9% 7.8%
Not Rated 0.8% 2.6%

CHARACTERISTICS as of 05/31/2019

Portfolio Index
Portfolio Index
Average Coupon 5.99% -
Average Effective Duration 0.36 Years 0.25 Years

Performance

Performance

Bank Loan Institutional Composite

Average Annual Returns as of 04/30/2019

YTD 1-YR 3-YR 5-YR 10-YR Since Inception
Gross of Fees 5.44% 3.98% 5.79% 4.53% 6.89% 5.16%
Net of Fees 5.27% 3.46% 5.27% 4.01% 6.36% 4.63%
CS Leveraged Loan Index 5.42% 4.46% 5.76% 4.11% 7.29% 4.61%

Calendar Year Returnsas of 04/30/2019

2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Gross of Fees 0.55% 4.70% 10.78% 1.14% 1.74% 6.75% 11.01% 2.30% 9.09% 33.25%
Net of Fees 0.05% 4.18% 10.23% 0.64% 1.23% 6.22% 10.46% 1.79% 8.55% 32.60%
CS Leveraged Loan Index 1.14% 4.25% 9.88% -0.38% 2.06% 6.15% 9.43% 1.82% 9.97% 44.87%

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