Portfolio Breakdown as of 01/30/2015

Bank Loans
High Yield Bonds
Cash

Credit Quality Distribution as of 01/30/2015

BBB
BB
B
CCC
<CCC
Not Rated

Portfolio Details as of 01/30/2015

Total Net Assets
$6.68 B
Number of Holdings
420
Average Loan Size
$1.57 B
Average Spread
3.81%

Portfolio Positioning as of 12/31/2014

  • Intensive credit analysis remains paramount to our process, as new deal terms have become less favorable to investors and structures more aggressive. We continue to apply discipline as to which new issues we buy, since pricing and the structure of deals in the current new-issue market often have not been up to our underwriting standards.
  • The market continued to place more emphasis on risk differentiation during the quarter; we believe individual credit decisions will become increasingly important in the future.  Thus, we have been looking for opportunities to trade into mid-quality names at appealing valuations.
  • Spreads on the leveraged loan index are wider than they were at the start of 2014, and the average dollar price is lower.  As a result, we believe there is the opportunity for capital appreciation in the loan market in 2015.

Sector Allocation as of 01/30/2015

Media/Telecom
Service
Healthcare
Information Technology
Gaming/Leisure
Utility
Retail
Manufacturing
Energy
Financial
Aerospace
Chemicals
Food/Tobacco
Food And Drug
Forest Products
Housing
Transportation
Metals/Minerals
Consumer Non-Durables
Consumer Durables
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