High Yield Fixed Income Strategy

We believe that the most attractive risk–reward opportunity within the high yield market exists in the higher-quality, less-volatile segments. We believe 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 through rigorous portfolio analysis, diversification and position limits, and proactive selling.

• Invests primarily in high yield bonds.
• Focuses on higher-quality credits exhibiting lower default risk and operating in mature sectors.
• De-emphasizes sectors with unfavorable risk–return relationships.
• Avoid purchasing securities rated CCC or below.