The fund seeks to achieve high current income and capital appreciation. Its sub-adviser, Strategic Income Management LLC (SiM), takes a long-term approach to the high yield markets and employs a philosophy centered on identifying secular trends and themes. Gary Pokrzywinski, Chief Investment Officer, and Brian Placzek, Head of High Yield Research, have primary responsibility for the fund’s day-to-day management and financial analysis.
According to the company, the fund seeks to maximize current income by investing in a diversified portfolio of fixed income securities that are generally rated below investment grade. SiM uses a core top-down philosophy to identify sectors, industries and companies that will benefit from positive long-term trends. It also identifies those that are undergoing a change in dynamics that can be capitalized on due to market volatility. Once potential investment opportunities are identified, SiM uses bottom-up research to assess the fundamental strengths and weaknesses of individual securities.
Under normal circumstances, at least 80% of the fund’s net assets will be invested in non-investment grade securities. The fund may invest up to 35% of its net assets in securities of foreign issuers, including up to 25% in emerging markets securities.