Investment Grade Corporate
High Yield Corporate
Government Related
Less than 1 yr
1-3 yrs
3-5 yrs
5-7 yrs
7-10 yrs
10-20 yrs

Credit Quality Distribution as of 12/31/2015

Not Rated

Portfolio Details as of 12/31/2015

Total Net Assets
$681.68 M
Number of Holdings
Average Coupon
Average Life
2.56 Years
Effective Duration
1.85 Years

Portfolio Positioning as of 12/31/2015

  • TThe portfolio combines a short-term bond strategy with an overlay of Consumer Price Index (CPI) swaps in order to hedge against inflation over a full market cycle. CPI swaps aided portfolio performance, as inflation expectations accelerated over the quarter.
  • The portfolio maintains its diversified exposure to various credit-sensitive sectors of the market. Consistent with recent allocations, the portfolio maintained only minor exposures to Treasury and agency securities over the quarter, primarily holding positions in these sectors for liquidity management purposes.
  • Although we broadly maintained the portfolio’s up-in-quality bias, we believe the volatility experienced in Q4 has resulted in unique opportunities to capture relative value across all sectors. We will seek to uncover attractive valuations in lower quality corporate debt, particularly within ‘BBB’ rated debt.  
  • The portfolio maintained a meaningful allocation to commercial mortgage-backed securities over the quarter. Although the sector underperformed relative to other opportunities, we maintain a positive outlook for the commercial real estate sector; particularly within single-borrower assets. Over the most recent quarter, single-borrower assets tended to outperform the broader commercial mortgage-backed securities sector.
  • The asset-backed securities sector continues to present unique opportunities for us to find pockets of relative value and attractive risk-adjusted spread.  While we remain focused on higher-quality securities owing to their more liquid nature, we have expanded our presence within the sector due to the attractiveness of spreads in lower-rated, investment-grade securities
Fund Dividends & Cap Gains next tab

Contact a Representative