The high yield strategy is an actively managed bond portfolio that invests primarily in the upper tier of the below investment grade securities. Inefficiencies in the high yield bond market create the opportunity to achieve portfolio returns greater than those of an investment grade corporate bond portfolio, while at the same time controlling risk to an acceptable level. The strategy utilizes a portfolio construction and investment selection process that relies on value identification, downside protection through intensive credit analysis and diversification.

• Conduct intensive research of companies, industries, and credit markets.
• Look for improving or expanding businesses in industries with room for growth.
• Use bottom up techniques to identify undervalued securities.
• Look for changes in the business cycle that might affect corporate profits and cash flow.
• Diversify holdings across high yield fixed income sectors and within issuers.
• Constrain portfolio based on client’s objectives and internal policy guidelines.
• Set average duration for the portfolio in a one half-year range around the benchmark, the Lehman Intermediate BB index.

• Extensive experience in equity and credit research
• Risk management expertise and solid fixed income analytical system for identifying relative value, optimizing portfolios, and controlling risks