High Yield Bonds
Investment Grade Bonds
Equity
Bank Loans
Convertibles
Treasury
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 02/27/2015

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

Portfolio Details as of 02/27/2015

Total Net Assets
$9.76 B
Number of Holdings
741
Average Coupon
5.95%
Average Maturity
7.93 Years
Effective Duration
5.15 Years

Portfolio Positioning as of 12/31/2014

  • Despite the weakness in the credit markets during the second half of 2014, 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 fourth quarter, we adjusted our allocations across asset classes to reduce the Fund’s risk profile and allocate capital to areas that we believe contain the best opportunities over the next few months. Early in the quarter, we reduced our exposure to high-yield bonds and convertible bonds and added exposure to investment-grade issuers and mid cap equities.
  • With the recent market weakness, spreads widened over the course of the year and are now above their long-term averages. While we will continue to focus on security selection within our favored sectors and industries, we now see the possibility for capital appreciation through spread tightening.
Fund Dividends & Cap Gains next tab

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