Multi-Sector Income Strategy
The strategy seeks to provide a high level of current income while limiting its overall exposure to domestic interest rate risk. Assets are allocated between three investment sleeves: high yield debt, foreign debt securities, and a mix of investment-grade corporate bonds and government debt securities.
Competitive advantages
Investment horizon
The team uses a six-month investment horizon to anticipate market inflection points.
Multiple levers
The team strategically allocates, by objective, to a variety of alpha sources through security selection, sector allocation, and duration and curve positioning.
Unbiased approach
The team seeks diversified and unbiased sources of alpha in an effort to generate compelling returns over a market cycle.
A consistent approach for thriving in inconsistent fixed income markets
The team employs a sector specialist model whereby tenured investment professionals are supported by rigorous credit research to source opportunities across global fixed income markets.
Key risks
Market risk: Security markets are volatile and may decline significantly in response to adverse issuer, regulatory, political, or economic developments with different sectors of the market and different security types reacting differently to such developments.
Debt securities risk: Debt securities are subject to both credit and interest rate risk. Credit risk is the possibility that the issuer or guarantor of a debt security may be unable, or perceived to be unable or unwilling, to pay interest or repay principal when they become due, and credit risk increases as an issuer’s credit quality or financial strength declines. Interest rate risk is the possibility that interest rates will change over time such that when interest rates rise, the value of debt securities tends to fall and the longer the terms of the debt securities held the greater the impact of this risk.
High yield risk: If a strategy invests in high yield securities (commonly known as junk bonds), these securities are considered speculative and have a much greater risk of default or of not returning principal and their values tend to be more volatile than higher-rated securities with similar maturities.
Foreign securities risk: If a strategy invests in the securities of non-U.S. issuers, these investments may be subject to lower liquidity, greater price volatility, and risks related to adverse political, regulatory, market, or economic developments and may be affected by changes in foreign currency exchange rates.
Investors should know that this strategy deployed may be subject to additional investment risks. For important information about the investment manager, please refer to the investment manager’s Form ADV Part 2, which is available upon request.
