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
  • 24+ year track record with a focus on steady returns and principal protection
  • Consistent philosophy and low turnover among the research team
Investment Style
High Quality / Strategic
STYLE
Benchmark
Bloomberg Barclays U.S. Corporate High Yield
BENCHMARK
Light bulb
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

Strategy Facts

As of 12/31/2018

 Assets Under Management (AUM)  $3.9 billion
 eVestment Universe  U.S. High Yield Fixed Income
 Investment Vehicles  Separate Account
 Mutual Fund
 Also offered as a private fund

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

Management

Garrick Bauer

Garrick T. Bauer, CFA

Vice President, Portfolio Manager

Career Summary
Wellington Management Company
Summit Investment Partners
PricewaterhouseCoopers

Education 
BS - Miami University
MBA - University of Virginia

Meet Garrick Bauer
Timothy Jossart

Timothy J. Jossart, CFA

Vice President, Portfolio Manager

Career Summary
Star Bank
PNC Bank

Education 
BBA - University of Wisconsin-Madison

Meet Timothy Jossart

Insights

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A Look at the Credit Cycle

Are we in the sixth inning of the credit cycle? The eighth? Is it even possible to know?

the follies of forecasting

The Follies of Forecasting

The historical record of forecasts in finance is abysmal. Fort Washington’s Senior Credit Analyst shares five examples from the recent past.

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