Defensive Short Duration High Income

Investment Philosophy

The objective of the Defensive Short Duration High Income strategy is to preserve investor capital and manage duration risk while generating high income. The strategy seeks to combine the downside protection of investment grade bonds with the upside return potential of high yield bonds while minimizing interest rate risk. The strategy has consistently generated alpha over the broad ICE BofA High Yield Index and more defensive than the ICE BofA BB-B Rated 1-3 Yr. Index with durability through down markets.

Differentiated profile characteristics of the Defensive Short Duration High Income strategy:

• Focus on Single-B and above credit quality rated bonds that are typically senior in a company’s capital structure
• Fill void created by total-return funds selling lowest yielding securities
• Detailed covenant reviews that help identify bonds with higher probability of a successful refinance