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 07/31/2015

AAA
AA
A
BBB
BB
B
CCC
<CCC
Not Rated

Portfolio Details as of 07/31/2015

Total Net Assets
$9.36 B
Number of Holdings
773
Average Coupon
5.97%
Average Maturity
9.19 Years
Effective Duration
5.34 Years

Portfolio Positioning as of 06/30/2015

  • Despite the volatility in the credit markets during the first half 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 an improving U.S. macroeconomic outlook, should continue to sustain valuations in the corporate credit asset class.
  • During the second quarter, we modestly adjusted the portfolio’s allocations across asset classes in order to maintain its exposure to areas that we believe reduce the portfolio’s risk profile and, also, potentially contain the best opportunities over the next few months. We slightly 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 maintained a higher weighting in mid-cap equities relative to convertible bonds.
  • The portfolio’s allocation to bank loans, equities, and high-yield bonds should help mitigate its sensitivity to rising interest rates.
Fund Dividends & Cap Gains next tab

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