Sovereign
Corporate
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

A
BBB
<BBB
Not Rated

Portfolio Details as of 03/31/2016

Total Net Assets
$8.46 M
Number of Issues
100
Average Coupon
6.32%
Average Life
7.1 Years
Average Maturity
7.1 Years
Average Modified Duration
4.8 Years

Portfolio Positioning as of 03/31/2016

  • We maintained a small underweight to U.S. rates for most of the quarter, as we expected a muted reaction in Treasury yields after the long-anticipated interest-rate hike by the U.S. Federal Reserve (Fed) that occurred in December 2015.
  • We increased a currency hedge in the portfolio at the beginning of the period, as volatility remained heightened and emerging market currencies faced significant downward pressures.
  • We increased our positioning in Latin America midway through the quarter, as Chinese yuan stabilization, the recovery in oil prices, and a dovish Fed fueled the rally in higher-beta currencies in the region.
  • In particular, we increased the portfolio’s exposure to Peruvian bonds, as valuations became attractive and fears abated, to some extent, regarding an economic slowdown in China, which is a major importer of commodities from Peru.
  • Overall, we decreased the portfolio’s exposure to Asia, as the region typically underperforms in a risk-on environment.
Currency Assets
Mexico 10.9%
Brazil 9.9%
Indonesia 9.7%
Turkey 9.5%
Poland 9.3%
Malaysia 9.0%
South Africa 9.0%
Colombia 7.6%
Thailand 6.8%
Russian Federation 6.1%
Hungary 4.8%
Romania 4.6%
Philippines 2.4%
Republic of Korea 2.0%
India 1.7%
Australia 1.0%
Chile 0.1%
Japan -0.9%
Singapore -1.4%
Canada -1.9%
Peru -2.0%
Euro -2.1%
Taiwan -2.2%
Fund Dividends & Cap Gains next tab

Contact a Representative