The Fund’s management team invests primarily in U.S.-based corporate bonds and debt securities rated below investment grade in an effort to provide higher levels of income and less sensitivity to interest rate changes than most other fixed income investments. The Fund may also hold select floating rate loans and other investments in domestic or foreign issuers. The Fund’s benchmark is the Bloomberg Barclays U.S. Corporate High Yield Bond Index.
Philosophy and Process
The investment team focuses on strategically managing exposure among levered asset classes, industries and issuers in anticipation of fundamental and technical market opportunities. The team’s bottom-up research process attempts to identify idiosyncratic total return opportunities at all levels of the capital structure. The Fund invests selectively and with conviction, holding a relatively small number of investments that our experienced, specialized levered credit analysts and portfolio managers know in depth. Concentration risks are mitigated by eliminating or avoiding exposure to both illiquid issues and industries that have demonstrated high systemic default rates through the credit cycle. The team exercises a firm sell discipline.