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 12/31/2015

AAA
AA
A
BBB
BB
B
CCC
<CCC
Not Rated

Portfolio Details as of 12/31/2015

Total Net Assets
$8.56 B
Number of Holdings
768
Average Coupon
5.84%
Average Maturity
8.96 Years
Effective Duration
4.60 Years

Portfolio Positioning as of 12/31/2015

  • Volatility in the credit markets experienced during the first half of 2015 intensified during the second half, with the most significant movements driven by commodity-sensitive sectors. We believe volatility may continue as markets assess global economic conditions and investors adjust to an increase in interest rates from the U.S. Federal Reserve.
  • Within the credit-sensitive portion of the portfolio, we have been defensively positioned in commodity-sensitive sectors, including gas distribution, oil field equipment and services, and steel producers. However, we may look for select opportunities in certain segments of the energy sector that display attractive valuations.
  • 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 and have generated positive returns in certain past periods of rising rates.
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