High Yield Bonds
Investment Grade Bonds
Equity
Bank Loans
Convertibles
Other
Cash
S.T & N.O.A
1 - 5 YEARS
6 - 10 YEARS
11 - 20 YEARS
21 - 30 YEARS
31 + YEARS
PFD(EQUITY)

Credit Quality Distribution as of 05/29/2015

AAA
AA
A
BBB
BB
B
CCC
<CCC
Not Rated

Portfolio Details as of 05/29/2015

Total Net Assets
$9.77 B
Number of Holdings
757
Average Coupon
6.00%
Average Maturity
9.30 Years
Effective Duration
5.27 Years

Portfolio Positioning as of 03/31/2015

  • Despite the volatility in the credit markets during the first quarter of 2015, credit fundamentals remain favorable, and are supported by low interest rates, which have contributed to default rates running well below longer-term norms. This favorable credit environment, combined with demand for investments that provide incremental yield over U.S. Treasuries, should continue to sustain the long-term performance of the corporate credit asset class.
  • During the first quarter, we modestly adjusted the portfolio’s allocations across asset classes in order to maintain exposure to areas that we believe reduce its risk profile and contain potentially the best opportunities over the next few months. We reduced the portfolio’s exposure to high-yield bonds and increased its exposure to investment-grade issuers. Within the portfolio’s equity-related allocation, we continued to shift from convertible bonds to mid cap equities.
  • Spreads narrowed over the course of the quarter, and are once again below their long-term averages. We still see the possibility for capital appreciation through spread tightening, though less so than at the beginning of 2015. We will continue to focus on security selection within our favored sectors and industries.
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