High Yield Bonds
Bank Loans
Equity
Investment Grade Bonds
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

BBB
BB
B
CCC
<CCC
Not Rated

Portfolio Details as of 12/31/2015

Total Net Assets
$3.76 B
Number of Holdings
627
Average Coupon
6.82%
Average Maturity
6.79 Years
Effective Duration
4.55 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.
  • The portfolio has underweight positions, relative to its benchmark, the BofA Merrill Lynch U.S. High Yield Constrained Index, 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.
  • As of quarter-end, the portfolio had modest allocations in out-of-index sectors, such as bank loans, convertibles, investment-grade bonds, and equities, as we found opportunities that offer attractive risk/reward profiles, while also providing additional portfolio diversification and avenues for liquidity.
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