Multi-Sector Opportunistic


Featured Strategies:

Multi-Sector Opportunistic Strategy

The strategy seeks to generate high current income and total return by applying extensive credit research and a time-tested approach to capitalize on opportunities across undervalued sectors of the bond market. The portfolio seeks diversification among 14 sectors in order to potentially increase return and manage risk. A team of investment professionals provides significant research depth across all bond market sectors.

Investment Process

Step 1 - Sector Analysis and Allocation

  • Top down, relative value approach
  • Relative value analysis looks at: yield and spreads; supply and demand; investment environment; sector fundamentals

Step 2 - Issue Selection

  • Bottom up, fundamental research driven
  • Fundamental analysis includes assessment of: credit risk; company management; issue structure; technical market conditions; focus on valuations

Step 3 - Portfolio Construction, Oversight, and Risk Management

  • Duration neutral strategy
  • Sector concentration
  • Issuer exposure: maximum 5%, average <1%
  • Manager review
  • Systematic review

Strategy Risk

Credit & Interest: Debt securities are subject to various risks, the most prominent of which are credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt securities may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities.

Foreign & Emerging Markets: Investing internationally, especially in emerging markets, involves additional risks such as currency, political, accounting, economic, and market risk.

High Yield-High Risk Fixed Income Securities: There is a greater level of credit risk and price volatility involved with high yield securities than investment grade securities.

ABS/MBS: Changes in interest rates can cause both extension and prepayment risks for asset- and mortgage-backed securities. These securities are also subject to risks associated with the repayment of underlying collateral.

Bank Loans: Loans may be unsecured or not fully collateralized, may be subject to restrictions on resale and/or trade infrequently on the secondary market. Loans can carry significant credit and call risk, can be difficult to value and have longer settlement times than other investments, which can make loans relatively illiquid at times.

Portfolio Team

David L. Albrycht, CFA
Industry Start Date: 1985
Benjamin Caron, CFA
Benjamin Caron, CFA
Industry Start Date: 1996
Stephen H. Hooker, CFA
Stephen H. Hooker, CFA
Industry Start Date: 1993

Featured Documents