High Yield Bonds
Bank Loans
Investment Grade Bonds
S.T & N.O.A
1 - 5 YEARS
6 - 10 YEARS
11 - 20 YEARS
21 - 30 YEARS
31 + YEARS

Credit Quality Distribution as of 02/27/2015

Not Rated

Portfolio Details as of 02/27/2015

Total Net Assets
$4.32 B
Number of Holdings
Average Coupon
Average Maturity
6.81 Years
Effective Duration
4.36 Years

Portfolio Positioning as of 12/31/2014

  • Despite the weakness in the high-yield market 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 yield, should continue to sustain the long-term performance of the high-yield asset class.
  • Relative to its benchmark, the BofA Merrill Lynch U.S. High Yield Constrained Index, the portfolio currently has an underweight position in ‘CCC’ rated bonds, because we do not believe that current valuations warrant an overweight position.
  • 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.
  • As of quarter-end, the portfolio had modest allocations in out-of-index sectors, such as bank loans, convertibles, and equities, as we found opportunities that offer attractive risk/reward profiles, while also providing additional portfolio diversification.  
Fund Dividends & Cap Gains next tab

Contact a Representative