Short Duration High Yield

The primary objective of the Short Duration High Yield style is to preserve investor capital while managing duration and generating current income from US based, US dollar denominated corporate debt. This is achieved by building a well-diversified, well-researched portfolio which tactically allocates to investment grade and convertible securities as well as potential calls, tenders and take-outs.

The portfolio looks to capitalize on short duration paper that is likely to be re-financed/retired. This includes corporate fixed-rate bonds and floating-rate bank loans. The style seeks to fill the void that is created by total return funds who typically sell their lowest yielding securities. PENN believes that the objective of this style will be met through the application of a rigorous, research-driven internal rating process (PENN PRR) and a consistent maintenance research on all holdings.