High Yield Fixed Income Strategy

The strategy seeks to outperform over a full market cycle by protecting principal in periods of market decline while providing a stable base of income across all periods.

Invests in higher-quality, less volatile segments
Top-down manages risk, and bottom-up builds a high quality diversified portfolio
25+ year track record with a focus on steady returns and principal protection
Consistent philosophy and low turnover among the research team

High Yield Fixed Income Commentary (PDF)

High Yield Fixed Income Fact Sheet (PDF)

High Quality / Strategic
STYLE

Bloomberg US Corporate High Yield
BENCHMARK

Jul. 1, 1994
INCEPTION

Philosophy

We believe that the most attractive risk-reward opportunity within the high yield market exists in the higher quality, less volatile segments. We believe that these segments can produce attractive absolute and relative returns, best achieved by:

Focusing on higher quality credits with lower default risk
Executing a consistent repeatable process
Emphasizing risk control via rigorous portfolio analysis, diversification/position limits, and proactive selling

Portfolio Construction

Invests primarily in high yield bonds
Focus on higher quality credits exhibiting lower default risk and mature sectors
De-emphasize sectors with unfavorable risk-return relationships
Avoid purchasing securities rated CCC or below