Defensive High Yield

The primary objective of the Defensive High Yield style is to preserve investor principal while generating high levels of current income from US based, US dollar denominated corporate debt. This is achieved by building a well-diversified, well-researched portfolio of cash-paying debt that are typically senior in a company’s capital structure.

The portfolio maintains a bias toward the upper and middle tiers (BB-B rated) of the high yield debt market. As a guideline, the portfolio will not own companies rated CCC or below by both Moody’s and Standard & Poor’s. By applying a rigorous, research-driven internal rating process (PENN PRR), a consistent maintenance research on all holdings, and a strict downside sell discipline, the PENN Defensive high yield style has generated long term performance that exceeds the broad market benchmark, particularly in down markets.