U.S. High Yield Corporate
U.S. Investment Grade Corporate
Equity
Non-U.S. High Yield Corporate
Non-U.S. Investment Grade Corporate
Sovereign
CMBS
Bank Loans
MBS
ABS
Convertibles
Other
Cash
Less than 1 year
1-2.99 years
3-4.99 years
5-6.99 years
7-9.99 years
Greater than 10 years

Credit Quality Distribution as of 03/31/2016

Agency
AAA
AA
A
BBB
BB
B
CCC
<CCC
Not Rated

Portfolio Details as of 03/31/2016

Total Net Assets
$8.61 B
Number of Issues
769
Average Coupon
5.94%
Average Maturity
10.42 Years
Average Effective Duration
4.59 Years

Portfolio Positioning as of 03/31/2016

  • Volatility in the credit markets experienced in the second half of 2015 continued into 2016, as markets digested the U.S. Federal Reserve’s interest rate increase. We believe volatility may continue as markets assess further potential rate increases, economic data from China, and supply/demand fundamentals in the commodities space.
  • Within the credit-sensitive portion of the portfolio, we have been defensively positioned in the healthcare and telecom sectors. Concerns relating to the pharmaceutical industry and a loss of earnings momentum in hospitals drove the portfolio’s positioning in health care during the quarter, while competitive pressures within the telecom space drove the portfolio’s positioning therein.
  • The portfolio’s allocation to bank loans, equities, and high yield bonds should help mitigate its sensitivity to rising interest rates. These asset classes historically have demonstrated negative correlation with Treasury securities.
Fund Dividends & Cap Gains next tab

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