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 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

• 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