Multi Asset Credit. Aon Hewitt Global Investment Management Group. June Risk. Reinsurance. Human Resources.

Size: px
Start display at page:

Download "Multi Asset Credit. Aon Hewitt Global Investment Management Group. June 2015. Risk. Reinsurance. Human Resources."

Transcription

1 Aon Hewitt Consulting Investment Consulting Practice Multi Asset Aon Hewitt Investment Management Group June 2015 Risk. Reinsurance. Human Resources.

2 Table of Contents An introduction to Multi Asset (MAC)...3 What is MAC?....4 How does MAC differ from Absolute Return?...4 Underlying MAC investments...5 The different types of MAC strategies...6 The benefit of diversification is less volatility...6 MAC s superior risk-return profile...7 Liquidity, credit and interest rate sensitivities....8 Manager selection...9 Appendix: risk analytics...9 Aon Hewitt Multi Asset 2

3 An introduction to Multi Asset (MAC) The global financial crisis of 2008 changed the landscape for credit in terms of investment behaviour and the pricing for credit and liquidity. The way investors thought about the different credit sectors began to blur and credit sectors became far less homogenous in terms of their pricing and trading behaviours. Further, post the crisis, the dispersion of credit quality has increased both within and across all of the credit sectors. This brings with it a good deal more opportunity to discover relative value between credits. A MAC manager with greater freedoms and skill to take advantage of this will be able to add greater overall value to a portfolio. Boundaries which had served to segregate credit sectors in terms of investment characteristics are less distinct post the global financial crisis. The sectors representing Investment and Non- Investment Grade bonds ( bonds), Leveraged, Emerging Market Debt () and Asset Backed Securities (ABS), no longer necessarily represent separate pools of assets with a high degree of correlation within. For example, investment grade ratings in external sovereign indices have migrated upwards and the asset class can no longer be described as primarily non-investment grade today 75% of securities within external sovereign indices are investment grade, compared to 45% in Financials on the other hand, have seen a sharp downward migration in credit ratings and many issues now cross the boundary into noninvestment grade securities. Investment managers are now more keenly focused on an individual company s standalone credit status and will form their own view of a company s credit rating rather than rely on a credit rating agency s assessment. There are many different types of a MAC strategy and all seek to provide managers with the freedoms to capture relative value across credit sectors more easily. MAC strategies enable a manager to invest where they deem the best value to be had, irrespective of which sector the bond belongs to. This more unconstrained approach frees portfolio construction from the anchor represented by a benchmark and as such, MAC managers will tend to describe their MAC strategies as benchmark agnostic or total return. Investors can decide what level of risk, return and liquidity is appropriate to their wider mandate, and then choose a MAC manager and strategy accordingly. Depending on how a portfolio is invested elsewhere, there can be further benefits to investing in a MAC strategy: MAC products have inherently shorter interest rate duration than typical all stock credit universes. Some managers will also systematically reduce duration further with the use of derivatives. The shorter duration of a MAC strategy will help to reduce the negative impact of a rising interest rate environment. By combining different credit sectors, the volatility of a MAC is also reduced when compared to the individual underlying allocations because of the greater diversification. When electing a MAC strategy, there is the lesser need for governance, given that one manager is chosen to allocate across different credit sectors, as opposed to appointing separate managers with separate mandates. Aon Hewitt Multi Asset 3

4 What is MAC? A MAC portfolio consists of predominantly credit related assets. It is broader in scope than a traditional core credit strategy because in addition to the traditional core investment grade corporate bond sector, it will include key allocations to the other credit sectors Investment and Non-Investment Grade bonds,, Emerging Market Debt () and Asset Backed Securities (ABS). The key drivers of performance remain credit related where yield on assets is received in return for taking on credit risk, the risk of credit deterioration and default. The diagram below illustrates a typical approach to the portfolio construction of a MAC. Managers will allocate to those credit sectors in which it has expertise and returns are built up from there. Exposure to the underlying sectors will comprise the bulk of the overall return and the manager will then seek to add value through security selection within sectors and rotation across sectors, over a cycle. A typical approach to portfolio construction for a MAC strategy <1% Sector Rotation 1% 5% Investment Grade Bonds Bonds Asset Backed Securities Distressed <1% Security Selection In essence, the core entity in all credit sectors is just the borrower or issuer of the debt. A strong bank for example could issue in either Investment Grade or bonds depending on where in its capital structure it is looking to issue. A Loan is just an alternative to issuing a bond for some companies and an security is just a sovereign or company who has issued debt in a region deemed to operate in an emerging financial market. We believe that the more rigid approach of limiting a credit mandate to any one of these credit sectors is less astute in today s environment and that allowing managers to allocate across these sectors gives them the opportunity to take advantage of price dislocations as they arise. We see this as a good reason to not restrict a manager to any one sector, but to allow the manager to identify relative value across these sectors and different types of debt instruments where we believe they have skill. Managers can then exploit the dislocations in price which do occur because of these sector boundaries. How does MAC differ from Absolute Return? Both MAC and Absolute Return Bond strategies are unconstrained approaches to fixed income investing. MAC however invests mainly in credit investments therefore the assets it allocates to, are only one subset of those which Absolute Return Bond strategies would allocate to. Given the more concentrated opportunity set, MAC products will maintain a structural exposure to credit markets at all times including periods of credit market stress, when we would expect MAC strategies to suffer negative returns. We would expect a MAC manager to have a deeper skill set in credit than would an Absolute Return Bond manager. Aon Hewitt Multi Asset 4

5 Underlying MAC investments: is a generic term relating to fixed income bonds, where the underlying borrower, either directly or indirectly is a company or a credit entity. The types of credit sectors a MAC could be exposed to, are broadly as follows: Investment Grade corporate bonds are bonds issued by companies and are rated between AAA and BBB as defined by the industry rating agencies, S&P, Moody s and Fitch. bonds are non-investment grade bonds, issued below a credit rating of BBB, i.e. BB and below. The market is the largest credit segment after Investment Grade bonds and offer a higher yield than Investment Grade credit because the risk of default is higher. The average recovery rate in the event of a default for is 40% and the lower down the credit spectrum a issue is, the more its trading behaviours would correlate to the company s equity. are also issued by companies and behave similarly to bonds although the issuing mechanics differ. The main investment difference between and is that are floating rate meaning the yield spread received by the investor is a fixed margin over cash rates. Given this fixed margin at issue, have very little interest rate risk and are often used by a MAC manager defensively as a substitute to bonds during periods when interest rates are thought to be rising. are often also called Leveraged because of the underlying leverage of the company (level of debt relative to equity) and there is no leverage in the loan itself. are typically secured against a company s assets and generally rank above respective Bonds in terms of a payout should the issuer default. While secured on assets, are still usually sub investment grade with typical recovery rates in the region of 60%. The market has evolved significantly over the past decade and now consists of three segments; Hard, Local and Corporate Debt. All bonds are issued by issuers domiciled in the Emerging Market region and are subdivided as follows: Hard Currency, also known as external debt, is issued by EM sovereigns or quasi-sovereign issuers and is denominated in US Dollars. Those sovereign governments have increasingly issued in Local Currency over recent years and this market is now the larger market of the two. Local companies then issue EM Corporate Debt in US Dollars and this is as yet a small and relatively illiquid market but we expect this to grow over time. There is some overlap here across both Investment Grade bonds and EM if the issuer is from an emerging economy and is rated investment grade. Managers will often blend the three segments, buying the segment where they believe the best value is to be had. Local Currency bonds have two return components local currency and interest rates and a MAC mandate could therefore have unhedged currency elements in any particular share class. Asset Backed Securities (ABS) are bonds where the coupon is paid from an underlying pool of assets which have been securitised. There are different types of ABS with different structures and pools of underlying assets these range from mortgages to credit card balances, student loans and auto loans among others. All pools represent small or illiquid balances which could not otherwise be sold individually. ABS is priced on the perceived value of the underlying assets and can have a credit range from investment grade to non-investment grade. ABS are structured such that cash flows from the underlying assets are bundled together and paid out on a different layering of seniority within the structure of the bond. Distressed refers to existing corporate bonds where there has been a significant deterioration in the perceived credit value, where the price has fallen significantly and the risk of default is high. These issues become very illiquid and no longer trade in secondary markets easily. These bonds are bought opportunistically, on the basis that the manager believes the bond to be mispriced and undervalued. Distressed bonds are a subset of the high yield universe but the illiquidity of the sector justifies identifying the holdings as separate. Convertible bonds are a type of bond with an embedded option, allowing the holder the discretion to convert from the bond to an ordinary share of the issuer, at a pre specified price. The convertible bond will likely trade at a small premium to the bond market given the embedded option, the value of which increases when the company s equity performs well and enables the investor to buy those shares below market value. Companies generally issue convertibles because it can be an economical way for them to raise capital. Manager skill comes into play by selecting those issuers whose equity is expected to perform well. Aon Hewitt Multi Asset 5

6 The different types of MAC strategies MAC strategies will differ depending on which of the sectors the manager will typically invest in. A manager s natural home turf will determine the risk return profile of a strategy and the adjacent chart illustrates very broadly the risk return profiles of the underlying sectors. With different blends of these sectors, the liquidity, credit and interest rate sensitivity of a MAC strategy will differ. As an illustration we have categorised possible blends into three manager types further on in the paper. Return Distressed Emerging Market Debt Bonds Asset Backed Securities Investment Grade Bonds Cash Risk The benefit of diversification is less volatility Thus far we have outlined the benefits of a MAC in terms of the greater opportunities which arise when the ability to allocate freely across credit sectors, is given. No one sector will consistently outperform the others year after year, as the table below illustrates. There is value in being able to capture the better returning sector, in any one given year. No one sector consistently outperforms year after year Best performing sector Worst performing sector Asset Class Investment Grade HC Source: Bloomberg, Suisse Leveraged Loan Index, BofA Merrill Lynch indices for global credit, high yield and External sovereign debt. Total returns shown, reflecting both credit and interest rate returns where appropriate, USD. Additionally, with greater diversification comes lower volatility. As sectors with different returns are blended, the overall volatility of the portfolio will fall. This is because in any one period, given different return streams, there will be a degree of price changes netting off. Aon Hewitt Multi Asset 6

7 MAC s superior risk-return profile The chart below shows the return and volatility of the key credit sectors over the same period of time, Investment Grade,,, and Equity, the latter is shown only for perspective. We also show how an example blend of a MAC strategy performed over the same period. Note that the MAC Blend returns do not include manager alpha and are based purely on a passive investment, a margin should be added to reflect manager excess returns. Examples of potential MAC returns are shown in the appendix and are based on Aon Hewitt s forward looking asset allocation and alpha projections. Also in the Appendix are the return profiles of other examples of differently blended MAC strategies. The chart shows that volatility can be reduced through diversifying across these sectors, and higher returns achieved. Equity IG US Bank MAC Blend 10% 9% Annualised Return (%) 8% 7% 6% 5% 4% 3% 2% 1% 2% 4% 6% 8% 10% 12% 14% 16% 18% Absolute Volatility (%) Example MAC Blend = 1/4 IG, 1/4, 1/2 HY, Data from January 1998 to December 2014, Sources (USD): Suisse Leveraged Loan Index, JPM EMBI, Merrill Lynch, Index, Merrill Lynch Corporate Index, MSCI world Index, Bloomberg. All returns USD. Aon Hewitt Multi Asset 7

8 Liquidity, credit and interest rate sensitivities More Liquid Less liquid Manager 3 sensitivity Manager 1 Manager 2 0 Interest rate sensitivity All managers will seek to protect the MAC portfolio to the extent it is able, from unwanted risks. No two MAC managers are the same. Three possible manager blends have been illustrated above to highlight some of the key features of MAC managers. Some managers choose to systematically hedge away all interest rate risk as in Manager 1 above, while others maintain durations at the short end of the yield curve arguing that this serves as a hedge for when corporate bond prices weaken, as in Managers 2 and 3. Managers 1 and 2 may seek more alpha from sector rotation, while Manager 3 would look more to longer term fundamental corporate value and would be the least liquid of the three managers. The type of MAC strategy appropriate for a mandate should depend on an investor s risk and return preferences, liquidity needs and duration requirements. Manager 1 and 2 above for example could be thought of as a more liquid MAC strategy when compared to Manager 3. To get this level of liquidity Managers 1 and 2 would have a good portion of Investment Grade assets where daily liquidity is possible. Given a LIBOR benchmark, Manager 1 could be chosen to sit alongside an unfunded LDI solution, offering returns very much based on credit spreads and not interest rates. Here, the choice to keep interest rate sensitivity very low is made when electing the strategy. Manager 2 could be invested similarly to Manager 1 but would retain the duration of the assets and use the opportunity to hedge only at a time when it saw fit to do so. As such, changes in interest rates will impact returns, although the longer term volatility of returns will arguably be less than Manager 1. Here the manager itself is making an active call on the direction of interest rates. Manager 3 represents managers who, because of their skill base, would be invested in far less liquid assets and lower down the credit curve when compared to Manager 1 and 2. Manager 3 would be offering weekly or monthly redemptions on account of more illiquid underlying assets. Manager 3 would also likely retain the duration of the assets and duration management is very much a secondary decision. Such strategies as these will typically allocate to and with smaller allocations to ABS or Distressed. In order to realise the full value of these assets and the liquidity premium, investment horizons tend to be longer and hence the need for longer redemption periods. Aon Hewitt Multi Asset 8

9 Manager selection We actively source managers that play to their strengths and whose MAC strategies have evolved out of what they do best. A credible MAC manager needs to demonstrate both skill and resource in each of the sectors their MAC strategy will allocate to. We look to see how portfolio construction is undertaken and how the product as a whole is composed whether sector rotation has proven to be additive in the past or not, which hedging techniques are employed and to what effect. Different exposures and style may fit better with one client s overall portfolio than another depending on how other assets within the overall mandate have been invested. Most MAC managers will have a degree of both top down and bottom up considerations playing a part in how portfolios are constructed at different stages in the credit cycle. A more top down manager will have more macroeconomic factors determining key investment decisions while bottom up type managers will have company fundamentals as the key driver of behind security selection and performance. On the other hand if a MAC manager tries to spread itself too thinly, drifting away from core skills, it needs to be assessed as to whether their more remote allocations are credible. It requires a lot of reach to truly be able to blend effectively across all credit sectors but we believe that our buy rated managers can achieve this. Investment Management, June 2015 Appendix: risk analytics Historical data: Blended strategies Representative strategies Indices MAC 1 MAC 2 MAC 3 IG US Bank Equity Return (p.a.) Risk (p.a.) Max drawdown month Representative strategies Indices Correlation MAC 1 MAC 2 MAC 3 IG US Bank Equity Representative strategies MAC MAC MAC IG Indices Equity Example MAC1 = 1/3 IG, 1/3 HY, 1/3, Duration hedged, USD Example MAC2 = 1/4 IG, 1/4, 1/2 HY, Duration unhedged, USD Example MAC3 = 1/2 HY, 1/2 US Bank, Duration unhedged, USD Return = annualised return Risk = annualised standard deviation of returns Max drawdown = lowest return experienced in any one month Sources (USD): Suisse Leveraged Loan Index, JPM EMBI, Merrill Lynch Index, Merrill Lynch Corporate Index, MSCI Equity Index, Bloomberg. Data from January 1998 to December 2014 Aon Hewitt Multi Asset 9

10 Forward looking projections (based on Aon Hewitt s asset allocation forward return and alpha projections) Representative strategies Indices MAC 1 MAC 2 MAC 3 IG US Bank Equity Return (p.a.) 4.8% 4.6% 5.0% 2.5% 3.3% 4.2% 3.8% 7.1% Risk (p.a.) 9.3% 9.8% 9.8% 3.8% 7.2% 13.0% 12.0% 20.4% Max drawdown month -12.8% -13.6% -13.2% -4.6% -10.0% -19.3% -17.2% -27.8% Representative strategies Indices Correlation MAC 1 MAC 2 MAC 3 IG US Bank Equity Representative strategies MAC MAC MAC IG Indices Equity Example MAC1 = 1/3 IG, 1/3 HY, 1/3, Duration hedged, GBP Example MAC2 = 1/4 IG, 1/4, 1/2 HY, Duration unhedged, GBP Example MAC3 = 2/5 HY, 2/5 US Bank, 1/5 Distressed Debt proxy, Duration unhedged, GBP Return = median ten year annualised return Risk = median through time standard deviation of returns Max drawdown = 5th percentile lowest year on year return experienced over ten years Correlations = these are median of the correlations measured sim by sim through time over ten years. US Bank loans are hedged to GBP is return is hedged to GBP HYD is hedged to GBP equity is unhedged to GBP Sources: Aon Hewitt Aon Hewitt Multi Asset 10

11 Contacts Sean Carlin, CFA Consultant Mette Charles Senior Investment Research Consultant +44 (0) Lennox Hartman Partner Head of Fixed Income Research +44 (0) About Aon Hewitt Aon Hewitt empowers organisations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organisational and personal performance and growth, navigate risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness. Aon Hewitt is a global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide. For more information on Aon Hewitt, please visit: aonhewitt.com Follow Aon on Twitter: twitter.com/aon_plc Sign up for News Alerts: Aon Hewitt Multi Asset 11

12 About Aon Aon plc (NYSE:AON) is a leading global provider of risk management, insurance brokerage and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 69,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative risk and people solutions. For further information on our capabilities and to learn how we empower results for clients, please visit: mediaroom.com/ Aon plc All rights reserved. This document and any enclosures or attachments are prepared on the understanding that it is solely for the benefit of the addressee(s). Unless we provide express prior written consent, no part of this document should be reproduced, distributed or communicated to anyone else and, in providing this document, we do not accept or assume any responsibility for any other purpose or to anyone other than the addressee(s) of this document. Notwithstanding the level of skill and care used in conducting due diligence into any organisation that is the subject of a rating in this document, it is not always possible to detect the negligence, fraud, or other misconduct of the organisation being assessed or any weaknesses in that organisation s systems and controls or operations. This document and any due diligence conducted is based upon information available to us at the date of this document and takes no account of subsequent developments. In preparing this document we may have relied upon data supplied to us by third parties (including those that are the subject of due diligence) and therefore no warranty or guarantee of accuracy or completeness is provided. We cannot be held accountable for any error, omission or misrepresentation of any data provided to us by third parties (including those that are the subject of due diligence). This document is not intended by us to form a basis of any decision by any third party to do or omit to do anything. Any opinions or assumptions in this document have been derived by us through a blend of economic theory, historical analysis and/or other sources. Any opinion or assumption may contain elements of subjective judgement and are not intended to imply, nor should be interpreted as conveying, any form of guarantee or assurance by us of any future performance. Views are derived from our research process and it should be noted in particular that we cannot research legal, regulatory, administrative or accounting procedures and accordingly make no warranty and accept no responsibility for consequences arising from relying on this document in this regard. Calculations may be derived from our proprietary models in use at that time. Models may be based on historical analysis of data and other methodologies and we may have incorporated their subjective judgement to complement such data as is available. It should be noted that models may change over time and they should not be relied upon to capture future uncertainty or events. Aon Hewitt Limited is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales. Registered No: Registered Office: The Aon Centre, The Leadenhall Building, 122 Leadenhall Street, London, EC3V 4AN Copyright 2015 Aon plc aon.com Risk. Reinsurance. Human Resources.

Do Diversified Growth Funds solve the diversification problem?

Do Diversified Growth Funds solve the diversification problem? Aon Hewitt Retirement and Investment Do Diversified Growth Funds solve the diversification problem? Risk. Reinsurance. Human Resources. Do Diversified Growth Funds solve the diversification problem? Diversified

More information

Are Unconstrained Bond Funds a Substitute for Core Bonds?

Are Unconstrained Bond Funds a Substitute for Core Bonds? TOPICS OF INTEREST Are Unconstrained Bond Funds a Substitute for Core Bonds? By Peter Wilamoski, Ph.D. Director of Economic Research Philip Schmitt, CIMA Senior Research Associate AUGUST 2014 The problem

More information

Simplifying Unconstrained Fixed Income Investing

Simplifying Unconstrained Fixed Income Investing Investment Management Fixed Income Team, July 204 Simplifying Unconstrained Fixed Income Investing Introduction Financial markets fluctuations in recent years and central banks attempts to sustain the

More information

Multi Asset Credit. Reviewing your credit exposure is it time to consider a multi-asset approach?

Multi Asset Credit. Reviewing your credit exposure is it time to consider a multi-asset approach? It seems that whoever you talk to in the pensions industry about their current hot topic, the answer is Multi-Asset Credit (MAC). But what does this term really mean? The answer, it appears, depends who

More information

High Yield Bonds A Primer

High Yield Bonds A Primer High Yield Bonds A Primer With our extensive history in the Canadian credit market dating back to the Income Trust period, our portfolio managers believe that there is considerable merit in including select

More information

Investment Strategy for Pensions Actuaries A Multi Asset Class Approach

Investment Strategy for Pensions Actuaries A Multi Asset Class Approach Investment Strategy for Pensions Actuaries A Multi Asset Class Approach 16 January 2007 Representing Schroders: Neil Walton Head of Strategic Solutions Tel: 020 7658 2486 Email: Neil.Walton@Schroders.com

More information

Spreading investment risk

Spreading investment risk 1 Spreading investment risk Spreading investment risk Why and how should I diversify my assets? 1 Spreading investment risk Contact: Doug Steevens FIA Portfolio Manager +44 (0)20 7086 9312 douglas.steevens@aonhewitt.com

More information

POPULAR BOND INDEXES MAY CONTAIN SIGNIFICANT EXPOSURE TO NON-U.S. ISSUERS. Non-U.S. Exposure in the Most Popular Corporate Bond Indexes

POPULAR BOND INDEXES MAY CONTAIN SIGNIFICANT EXPOSURE TO NON-U.S. ISSUERS. Non-U.S. Exposure in the Most Popular Corporate Bond Indexes WisdomTree ETFs STRATEGIC CORPORATE BOND FUND CRDT In the current market environment, investors have increasingly targeted corporate bonds 1 as one approach to enhance income in their portfolios. Through

More information

FIXED INCOME INVESTORS HAVE OPTIONS TO INCREASE RETURNS, LOWER RISK

FIXED INCOME INVESTORS HAVE OPTIONS TO INCREASE RETURNS, LOWER RISK 1 FIXED INCOME INVESTORS HAVE OPTIONS TO INCREASE RETURNS, LOWER RISK By Michael McMurray, CFA Senior Consultant As all investors are aware, fixed income yields and overall returns generally have been

More information

Rethinking Fixed Income

Rethinking Fixed Income Rethinking Fixed Income Challenging Conventional Wisdom May 2013 Risk. Reinsurance. Human Resources. Rethinking Fixed Income: Challenging Conventional Wisdom With US Treasury interest rates at, or near,

More information

Understanding the Fees Charged Within Fiduciary Management

Understanding the Fees Charged Within Fiduciary Management Aon Hewitt Delegated Consulting Services Understanding the Fees Charged Within Fiduciary Management January 2014 Risk. Reinsurance. Human Resources. Table of contents Overview...2 What are the fee components?...3

More information

Fixed-income opportunity: Short duration high yield

Fixed-income opportunity: Short duration high yield March 2014 Insights from: An income solution for a low or rising interest-rate environment Generating income is a key objective for many investors, and one that is increasingly difficult to achieve in

More information

An Attractive Income Option for a Strategic Allocation

An Attractive Income Option for a Strategic Allocation An Attractive Income Option for a Strategic Allocation Voya Senior Loans Suite A strategic allocation provides potential for high and relatively steady income through most credit and rate cycles Improves

More information

CONSTRUCTING A GROWTH FIXED INCOME PORTFOLIO MAY 2013

CONSTRUCTING A GROWTH FIXED INCOME PORTFOLIO MAY 2013 CONSTRUCTING A GROWTH FIXED INCOME PORTFOLIO MAY 2013 Context Currently developed market sovereign bonds are not appealing from an investment perspective. They offer negative or low real returns and are

More information

High-yield bonds have become a global opportunity

High-yield bonds have become a global opportunity By: Yoshie Phillips, CFA, Senior Research Analyst APRIL 2013 High-yield bonds have become a global opportunity Investors seeking income or attractive total return investments often look into high-yield

More information

Investment insight. Fixed income the what, when, where, why and how TABLE 1: DIFFERENT TYPES OF FIXED INCOME SECURITIES. What is fixed income?

Investment insight. Fixed income the what, when, where, why and how TABLE 1: DIFFERENT TYPES OF FIXED INCOME SECURITIES. What is fixed income? Fixed income investments make up a large proportion of the investment universe and can form a significant part of a diversified portfolio but investors are often much less familiar with how fixed income

More information

HSBC World Selection Portfolios The smart way to diversify your customers investments

HSBC World Selection Portfolios The smart way to diversify your customers investments HSBC World Selection Portfolios The smart way to diversify your customers investments 2 A smart way to invest 3 The benefit of diversification 6 How is HSBC World Selection managed? 8 What are the advantages

More information

An Introduction to the Asset Class. Convertible Bonds

An Introduction to the Asset Class. Convertible Bonds An Introduction to the Asset Class Convertible DESCRIPTION Convertible (CBs) are fixed income instruments that can be converted into a fixed number of shares of the issuer at the option of the investor.

More information

3Q14. Are Unconstrained Bond Funds a Substitute for Core Bonds? August 2014. Executive Summary. Introduction

3Q14. Are Unconstrained Bond Funds a Substitute for Core Bonds? August 2014. Executive Summary. Introduction 3Q14 TOPICS OF INTEREST Are Unconstrained Bond Funds a Substitute for Core Bonds? August 2014 Executive Summary PETER WILAMOSKI, PH.D. Director of Economic Research Proponents of unconstrained bond funds

More information

Why Anfield s Universal Fixed Income Fund?

Why Anfield s Universal Fixed Income Fund? Why Anfield s Universal Fixed Income Fund? Disclosure Investors should carefully consider the investment objectives, risks, charges and expenses of the Anfield Universal Fixed Income Fund. This and other

More information

Fixed income benchmarks Time to think again?

Fixed income benchmarks Time to think again? February 2013 Fixed income benchmarks Time to think again? There are a number of drawbacks to the use of traditional fixed income benchmarks. As a consequence, some fixed income managers are reappraising

More information

PERFORMING DUE DILIGENCE ON NONTRADITIONAL BOND FUNDS. by Mark Bentley, Executive Vice President, BTS Asset Management, Inc.

PERFORMING DUE DILIGENCE ON NONTRADITIONAL BOND FUNDS. by Mark Bentley, Executive Vice President, BTS Asset Management, Inc. PERFORMING DUE DILIGENCE ON NONTRADITIONAL BOND FUNDS by Mark Bentley, Executive Vice President, BTS Asset Management, Inc. Investors considering allocations to funds in Morningstar s Nontraditional Bond

More information

2013 GSAM Insurance Survey & Industry Investment Trends

2013 GSAM Insurance Survey & Industry Investment Trends Global Insurance Asset Management AASCIF Annual Workshop Fall 23 23 GSAM Insurance Survey & Industry Investment Trends Michael Siegel, PhD Global Head of GSAM Insurance Asset Management September 3, 23

More information

Managing Risk/Reward in Fixed Income

Managing Risk/Reward in Fixed Income INSIGHTS Managing Risk/Reward in Fixed Income Using Global Currency-Hedged Indices as Benchmarks In the pursuit of alpha, is it better to use a global hedged or unhedged index as a benchmark for measuring

More information

Understanding Fixed Income

Understanding Fixed Income Understanding Fixed Income 2014 AMP Capital Investors Limited ABN 59 001 777 591 AFSL 232497 Understanding Fixed Income About fixed income at AMP Capital Our global presence helps us deliver outstanding

More information

Seeking a More Efficient Fixed Income Portfolio with Asia Bonds

Seeking a More Efficient Fixed Income Portfolio with Asia Bonds Seeking a More Efficient Fixed Income Portfolio with Asia s Seeking a More Efficient Fixed Income Portfolio with Asia s Drawing upon different drivers for performance, Asia fixed income may improve risk-return

More information

AMP Capital Investment Funds

AMP Capital Investment Funds AMP Capital Investment Funds Investment Statement Dated: 18 September 2015 Issued by AMP Investment Management (N.Z.) Limited Important information (The information in this section is required under the

More information

Priority Senior Secured Income Fund, Inc.

Priority Senior Secured Income Fund, Inc. Priority Senior Secured Income Fund, Inc. This material is neither an offer to sell nor the solicitation of an offer to buy any security. Such an offer can be made only by prospectus, which has been filed

More information

CHAPTER 9 DEBT SECURITIES. by Lee M. Dunham, PhD, CFA, and Vijay Singal, PhD, CFA

CHAPTER 9 DEBT SECURITIES. by Lee M. Dunham, PhD, CFA, and Vijay Singal, PhD, CFA CHAPTER 9 DEBT SECURITIES by Lee M. Dunham, PhD, CFA, and Vijay Singal, PhD, CFA LEARNING OUTCOMES After completing this chapter, you should be able to do the following: a Identify issuers of debt securities;

More information

Spectrum Insights. Bond and stock market around the same size Australian bonds vs Australian stock market

Spectrum Insights. Bond and stock market around the same size Australian bonds vs Australian stock market Market capitalization $b Spectrum Insights Damien Wood, Principal JUNE 9, 2015 Corporate bonds often provides investors with an income stream that is above deposit rates, but less risky than dividends

More information

Investor Guide to Bonds

Investor Guide to Bonds Investor Guide Investor Guide to Bonds threadneedle.com Introduction Why invest in bonds? Although your capital is normally considered safe in a traditional deposit account, low interest rates have eroded

More information

Unconstrained Fixed Income: One Asset Manager s Perspective HIMCO Webinar

Unconstrained Fixed Income: One Asset Manager s Perspective HIMCO Webinar Unconstrained Fixed Income: One Asset Manager s Perspective HIMCO Webinar October 1, 2014 14-0408 Unconstrained Fixed Income: One Asset Manager s Perspective Presenters Christopher Zeppieri, CFA Vice President

More information

Documeent title on one or two. high-yield bonds. Executive summary. W Price (per $100 par) W. The diversification merits of high-yield bonds

Documeent title on one or two. high-yield bonds. Executive summary. W Price (per $100 par) W. The diversification merits of high-yield bonds April 01 TIAA-CREF Asset Management Documeent title on one or two The lines enduring Gustan case Book for pt high-yield bonds TIAA-CREF High-Yield Strategy Kevin Lorenz, CFA Managing Director Co-portfolio

More information

SUMMARY PROSPECTUS. TCW Emerging Markets Multi-Asset Opportunities Fund FEBRUARY 29 I SHARE: TGMAX N SHARE: TGMEX

SUMMARY PROSPECTUS. TCW Emerging Markets Multi-Asset Opportunities Fund FEBRUARY 29 I SHARE: TGMAX N SHARE: TGMEX TCW Emerging Markets Multi-Asset Opportunities Fund I SHARE: TGMAX N SHARE: TGMEX 20 6 FEBRUARY 29 SUMMARY PROSPECTUS Before you invest, you may want to review the Fund s Prospectus which contain more

More information

Fixed Income Liquidity in a Rising Rate Environment

Fixed Income Liquidity in a Rising Rate Environment Fixed Income Liquidity in a Rising Rate Environment 2 Executive Summary Ò Fixed income market liquidity has declined, causing greater concern about prospective liquidity in a potential broad market sell-off

More information

Seeking Alternatives. Senior loans an innovative asset class

Seeking Alternatives. Senior loans an innovative asset class Trends 09 10.11 Seeking Alternatives Senior loans an innovative asset class Dirk Wieringa, Alternative Investments Advisory Senior loans are an innovative asset class that provide a hedge against rising

More information

Questions and Answers About Senior Secured Loans

Questions and Answers About Senior Secured Loans Revised August 2013 Senior Secured Loans Questions and Answers About Senior Secured Loans Joe Lemanowicz Managing Director and Head of U.S. Senior Secured Loan Team Pramerica Fixed Income U.S. senior secured

More information

Essentials of Fixed Income

Essentials of Fixed Income Essentials of Fixed Income State Universities Retirement System April 2010 (This page left blank intentionally) Benefits of Fixed Income Main reasons to invest in fixed income: Diversification Return potential

More information

FLOATING RATE BANK LOANS: A BREAK FROM TRADITION FOR INCOME-SEEKING INVESTORS. Why does the bank loan sector remain so attractive?

FLOATING RATE BANK LOANS: A BREAK FROM TRADITION FOR INCOME-SEEKING INVESTORS. Why does the bank loan sector remain so attractive? FLOATING RATE BANK LOANS: A BREAK FROM TRADITION FOR INCOME-SEEKING INVESTORS Bank loans present a compelling income opportunity and a portfolio diversifier that provides protection against traditional

More information

Harvesting bond returns as rates rise

Harvesting bond returns as rates rise November 214 For professional investors and advisers only. Harvesting bond returns as rates rise The climate is changing for fixed income. Quantitative easing is winding down. Interest rates look ready

More information

May 1, 2015 as amended June 1, 2015

May 1, 2015 as amended June 1, 2015 INSTITUTIONAL INVESTOR May 1, 2015 as amended June 1, 2015 DATE TARGET FUNDS MyDestination 2005 Fund MyDestination 2015 Fund MyDestination 2025 Fund MyDestination 2035 Fund MyDestination 2045 Fund MyDestination

More information

A leveraged. The Case for Leveraged Loans. Introduction - What is a Leveraged Loan?

A leveraged. The Case for Leveraged Loans. Introduction - What is a Leveraged Loan? PENN Capital Management The Navy Yard Corporate Center 3 Crescent Drive, Suite 400 Philadelphia, PA 19112 Phone: 215-302-1501 www.penncapital.com For more information: Christian Noyes, Senior Managing

More information

INVESTING IN NZ BONDS

INVESTING IN NZ BONDS INVESTING IN NZ BONDS August 2008 Summary Historically active NZ bond managers have achieved returns about 0.6% p.a., before tax and fees, above that of the NZ government stock index. While on the surface

More information

Opportunities in credit higher quality high-yield bonds

Opportunities in credit higher quality high-yield bonds Highlights > > Default rates below the long-term average > > Valuations wide of historical average in BB and B rated credit > > Despite sluggish economy, high yield can still perform well > > High yield

More information

An Alternative Way to Diversify an Income Strategy

An Alternative Way to Diversify an Income Strategy Senior Secured Loans An Alternative Way to Diversify an Income Strategy Alternative Thinking Series There is no shortage of uncertainty and risk facing today s investor. From high unemployment and depressed

More information

Absolute return: The search for positive returns in changing markets

Absolute return: The search for positive returns in changing markets Absolute return: The search for positive returns in changing markets Tuesday, 7 June 2011 Portfolio Manager for Global Fixed Income and Absolute Return Funds www.dbadvisors.com Topics for discussion What

More information

BMO Corporate Bond ETFs

BMO Corporate Bond ETFs For professional investors only Exchange Traded Funds PAGE 1 BMO Corporate Bond ETFs Diversified, global bond exposure ember 20 Contact us Client Services +44 (0) 20 70 4444 client.service@bmogam.com bmogam.com/etfs

More information

The Globalization of the High Yield Market:

The Globalization of the High Yield Market: The Globalization of the High Yield Market: Why Diversification Is An Increasingly Important Consideration In High Yield Investing The High Yield Team May 2013 The Globalization of the High Yield Market:

More information

Justifying the investment budget

Justifying the investment budget Justifying the investment budget Professional Pensions DC Conference, 12 April 2016 Tim Horne DC Investment Solutions Manager, Schroders For professional investors only. This material is not suitable for

More information

Chapter 12. Page 1. Bonds: Analysis and Strategy. Learning Objectives. INVESTMENTS: Analysis and Management Second Canadian Edition

Chapter 12. Page 1. Bonds: Analysis and Strategy. Learning Objectives. INVESTMENTS: Analysis and Management Second Canadian Edition INVESTMENTS: Analysis and Management Second Canadian Edition W. Sean Cleary Charles P. Jones Chapter 12 Bonds: Analysis and Strategy Learning Objectives Explain why investors buy bonds. Discuss major considerations

More information

SSgA CAPITAL INSIGHTS

SSgA CAPITAL INSIGHTS SSgA CAPITAL INSIGHTS viewpoints Part of State Street s Vision thought leadership series A Stratified Sampling Approach to Generating Fixed Income Beta PHOTO by Mathias Marta Senior Investment Manager,

More information

Your Complete Investment Solution taking care of you...

Your Complete Investment Solution taking care of you... investment funds Your Complete Investment Solution taking care of you... Introduction New Ireland is one of the leading providers of investment solutions within the Irish market today. We offer a range

More information

Unconstrained Fixed Income

Unconstrained Fixed Income Unconstrained Fixed Income A Dynamic and Flexible Approach to Fixed Income Investing 26th ANNUAL TEXPERS CONFERENCE Global Fixed Income & Liquidity Management March 2015 This material is provided for educational

More information

Fixed Income Update Portfolio Positioning

Fixed Income Update Portfolio Positioning Fixed Income Update Portfolio Positioning April 2015 In 2014, we saw traditional relationships between equity and high yield performance diverge. Despite an improving U.S. economy Treasuries rallied along

More information

PROTECTING YOUR PORTFOLIO WITH BONDS

PROTECTING YOUR PORTFOLIO WITH BONDS Your Global Investment Authority PROTECTING YOUR PORTFOLIO WITH BONDS Bond strategies for an evolving market Market uncertainty has left many investors wondering how to protect their portfolios during

More information

Quarterly Asset Class Report Institutional Fixed Income

Quarterly Asset Class Report Institutional Fixed Income Quarterly Asset Class Report Institutional Presentation To: Presented By: canterburyconsulting.com September 30, 015 Role in the Canterbury Consulting recommends and communicates asset-class strategy with

More information

Leveraged Loan Funds: Debunking the Myths

Leveraged Loan Funds: Debunking the Myths Leveraged Loan Funds: Debunking the Myths SM Leveraged Loan Funds: Debunking the Myths Contents 2 Myth #1: Managing liquidity in actively managed leveraged loan mutual funds is difficult. 3 Myth #2: In

More information

Guggenheim Investments. European High-Yield and Bank Loan Market Overview

Guggenheim Investments. European High-Yield and Bank Loan Market Overview Guggenheim Investments European High-Yield and Bank Loan Market Overview August 2015 European High-Yield & Bank Loan Market Overview Please see disclosures and legal notice at end of document. 2 August

More information

Investment Funds Description

Investment Funds Description Investment Funds Description As of January 1, 2016 (Containing performance and other information as of December 31, 2015 unless otherwise noted) Short Term Investment Fund Stable Value Fund Inflation Protection

More information

Non-Government-Guaranteed Bonds in the Petroleum Fund - NBIM

Non-Government-Guaranteed Bonds in the Petroleum Fund - NBIM Page 1 of 7 Non-Government-Guaranteed Bonds in the Petroleum Fund From 2002, the Government Petroleum Fund will be investing a large portion of the portfolio in non-government bonds. The benchmark index

More information

Asset allocation A key component of a successful investment strategy

Asset allocation A key component of a successful investment strategy Asset allocation A key component of a successful investment strategy This guide has been produced for educational purposes only and should not be regarded as a substitute for investment advice. Vanguard

More information

Insurance Dedicated Funds: Variable Insurance Trusts

Insurance Dedicated Funds: Variable Insurance Trusts At a Glance September 2015 Insurance Dedicated Funds: Variable Insurance Trusts Our goal at GSAM is to meet the financial goals of investors worldwide, now and in the future, with innovative investment

More information

SHORT DURATION BONDS

SHORT DURATION BONDS SHORT DURATION BONDS Our Short Duration Bond Fund range RL Short Duration Gilt Fund RL Short Duration Global Index Linked Bond Fund RL Short Duration Credit Fund RL Duration Hedged Credit Fund RL Short

More information

California State University, Fresno Foundation INVESTMENT POLICY STATEMENT

California State University, Fresno Foundation INVESTMENT POLICY STATEMENT INVESTMENT POLICY STATEMENT 1. Purposes of the Investment Policy Statement The purposes of this Investment Policy Statement for the management of the Foundation funds under management authority of the

More information

High-Yield Spread U.S. 10-Year Treasury Yield Investment Grade Spread

High-Yield Spread U.S. 10-Year Treasury Yield Investment Grade Spread WisdomTree ETFs BOFA MERRILL LYNCH HIGH YIELD BOND ZERO DURATION FUND HYZD The U.S. high-yield bond market has been one of the best-performing subsets of the fixed income investable universe over the past

More information

TRANSAMERICA SERIES TRUST Transamerica Vanguard ETF Portfolio Conservative VP. Supplement to the Currently Effective Prospectus and Summary Prospectus

TRANSAMERICA SERIES TRUST Transamerica Vanguard ETF Portfolio Conservative VP. Supplement to the Currently Effective Prospectus and Summary Prospectus TRANSAMERICA SERIES TRUST Transamerica Vanguard ETF Portfolio Conservative VP Supplement to the Currently Effective Prospectus and Summary Prospectus * * * The following replaces in their entirety the

More information

Navigating through flexible bond funds

Navigating through flexible bond funds WHITE PAPER February 2015 For professional investors Navigating through flexible bond funds Risk management as a key focus point Kommer van Trigt Winfried G. Hallerbach Navigating through flexible bond

More information

Long duration bond benchmarks for corporate pension plans

Long duration bond benchmarks for corporate pension plans By: Yoshie Phillips, CFA, Senior Research Analyst OCTOBER 2011 Long duration bond benchmarks for corporate pension plans Issue: With the growth of liability-driven investing (LDI), many corporate pension

More information

FLOATING RATE BANK LOANS: A BREAK FROM TRADITION FOR INCOME-SEEKING INVESTORS

FLOATING RATE BANK LOANS: A BREAK FROM TRADITION FOR INCOME-SEEKING INVESTORS FLOATING RATE BANK LOANS: A BREAK FROM TRADITION FOR INCOME-SEEKING INVESTORS With about $713 billion in assets, the bank loan market is roughly half the size of the high yield market. However, demand

More information

JPMorgan Global Bond Fund. Global investing - A less volatile choice NEW. SFC-authorised global bond fund with RMB-hedged share classes*!

JPMorgan Global Bond Fund. Global investing - A less volatile choice NEW. SFC-authorised global bond fund with RMB-hedged share classes*! AVAILABLE FOR PUBLIC CIRCULATION NEW JPMorgan Global Bond Fund December 2015 Asset Management Company of the Year 2014 Fundamental Strategies, Asia + Important information 1. The Fund invests primarily

More information

The active/passive decision in global bond funds

The active/passive decision in global bond funds The active/passive decision in global bond funds Vanguard research November 213 Executive summary. This paper extends the evaluation of active versus passive management to global bond funds. Previous Vanguard

More information

Why own bonds when yields are low?

Why own bonds when yields are low? Why own bonds when yields are low? Vanguard research November 213 Executive summary. Given the backdrop of low yields in government bond markets across much of the developed world, many investors may be

More information

NPH Fixed Income Research Update. Bob Downing, CFA. NPH Senior Investment & Due Diligence Analyst

NPH Fixed Income Research Update. Bob Downing, CFA. NPH Senior Investment & Due Diligence Analyst White Paper: NPH Fixed Income Research Update Authored By: Bob Downing, CFA NPH Senior Investment & Due Diligence Analyst National Planning Holdings, Inc. Due Diligence Department National Planning Holdings,

More information

Invesco Senior Secured Loans Strategy. High, stable monthly income by investing in loans to global companies

Invesco Senior Secured Loans Strategy. High, stable monthly income by investing in loans to global companies Invesco Senior Secured Loans Strategy High, stable monthly income by investing in loans to global companies If you need: regular monthly income protection against rising rates capital stability a trusted

More information

Why high-yield municipal bonds may be attractive in today s market environment

Why high-yield municipal bonds may be attractive in today s market environment Spread Why high-yield municipal bonds may be attractive in today s market environment February 2014 High-yield municipal bonds may be attractive given their: Historically wide spreads Attractive prices

More information

Why Consider Bank Loan Investing?

Why Consider Bank Loan Investing? Why Consider Bank Loan Investing? September 2012 Bank loans continue to increase in popularity among a variety of investors in search of higher yield potential than other types of bonds, with lower relative

More information

ALLOCATION STRATEGIES A, C, & I SHARES PROSPECTUS August 1, 2015

ALLOCATION STRATEGIES A, C, & I SHARES PROSPECTUS August 1, 2015 ALLOCATION STRATEGIES A, C, & I SHARES PROSPECTUS August 1, 2015 Investment Adviser: RidgeWorth Investments A Shares C Shares I Shares Aggressive Growth Allocation Strategy SLAAX CLVLX CVMGX Conservative

More information

INTRODUCING THE WISDOMTREE WESTERN ASSET UNCONSTRAINED BOND FUND The First Truly Unconstrained Fixed Income ETF

INTRODUCING THE WISDOMTREE WESTERN ASSET UNCONSTRAINED BOND FUND The First Truly Unconstrained Fixed Income ETF WisdomTree Western Asset ETFs UNCONSTRAINED BOND FUND UBND For decades, declining interest rates have provided a tailwind for traditional fixed income strategies. Today, with yields near historic lows

More information

Invesco Fixed Income Invesco Active Multi-Sector Credit Fund

Invesco Fixed Income Invesco Active Multi-Sector Credit Fund Invesco Fixed Income Invesco Active Multi-Sector Credit Fund This marketing document is exclusively for use by Qualified Investors in Switzerland, Professional Clients and Financial Advisers in other Continental

More information

The active/passive decision in global bond funds

The active/passive decision in global bond funds The active/passive decision in global bond funds Vanguard research November 213 Executive summary. This paper extends the evaluation of active versus passive management to global bond funds. Previous Vanguard

More information

Staying alive: Bond strategies for a normalising world

Staying alive: Bond strategies for a normalising world Staying alive: Bond strategies for a normalising world Dr Peter Westaway Chief Economist, Europe Vanguard Asset Management November 2013 This document is directed at investment professionals and should

More information

Holding the middle ground with convertible securities

Holding the middle ground with convertible securities January 2015» White paper Holding the middle ground with convertible securities Eric N. Harthun, CFA Portfolio Manager Robert L. Salvin Portfolio Manager Key takeaways Convertible securities are an often-overlooked

More information

Impact of rising interest rates on preferred securities

Impact of rising interest rates on preferred securities Impact of rising interest rates on preferred securities This report looks at the risks preferred investors may face in a rising-interest-rate environment. We are currently in a period of historically low

More information

Seix Total Return Bond Fund

Seix Total Return Bond Fund Summary Prospectus Seix Total Return Bond Fund AUGUST 1, 2015 (AS REVISED FEBRUARY 1, 2016) Class / Ticker Symbol A / CBPSX R / SCBLX I / SAMFX IS / SAMZX Before you invest, you may want to review the

More information

The Fixed Income Conundrum What s your next move?

The Fixed Income Conundrum What s your next move? What s your next move? For some time, low yields have been a reality in the bond market, leading many investors to hail a new normal that is both persistent and uncharted. Government bond yields in North

More information

Traditionally pension schemes invested in four main asset classes: Shares (Equities or Stocks), Bonds, Property and Cash.

Traditionally pension schemes invested in four main asset classes: Shares (Equities or Stocks), Bonds, Property and Cash. Asset Classes Traditionally pension schemes invested in four main asset classes: Shares (Equities or Stocks), Bonds, Property and Cash. Shares (also called Equities or Stocks) are shares bought in quoted

More information

Best Styles: Harvesting Risk Premium in Equity Investing

Best Styles: Harvesting Risk Premium in Equity Investing Strategy Best Styles: Harvesting Risk Premium in Equity Investing Harvesting risk premiums is a common investment strategy in fixed income or foreign exchange investing. In equity investing it is still

More information

The timeless (and timely) case for high-yield bonds

The timeless (and timely) case for high-yield bonds INCOME EATON VANCE Looking beyond traditional sources of yield MARCH 2016 TIMELY THINKING The timeless (and timely) case for high-yield bonds SUMMARY High-yield bonds occupy a special capital market niche:

More information

Global High Yield. Diversification in the asset class. June 2016

Global High Yield. Diversification in the asset class. June 2016 Global High Yield Diversification in the asset class June 2016 Authored by: Mary Bowers, CFA, Portfolio Manager, Global High Yield Julian Moore, Product Specialist, Global Credit Global High Yield Executive

More information

Strength Across the Board Investment Excellence in Fixed Income 30 June 2015

Strength Across the Board Investment Excellence in Fixed Income 30 June 2015 Strength Across the Board Investment Excellence in Fixed Income 30 June 205 Recognising the strength and depth of our Fixed Income range across Europe, the US and Emerging Markets CLASS I EUR Performance

More information

Manager Structure Presentation

Manager Structure Presentation Presentation to the Tobacco Settlement Investment Board May 18, 2009 Millie Viqueira Senior Vice President Jay Kloepfer Executive Vice President Callan Associates Inc. 200 Park Avenue, Suite 230 Florham

More information

INCOME IN ALL MARKETS COLUMBIA STRATEGIC INCOME FUND Class A COSIX Class C CLSCX Class R CSNRX Class R4 CMNRX Class R5 CTIVX Class Z LSIZX

INCOME IN ALL MARKETS COLUMBIA STRATEGIC INCOME FUND Class A COSIX Class C CLSCX Class R CSNRX Class R4 CMNRX Class R5 CTIVX Class Z LSIZX INCOME IN ALL MARKETS COLUMBIA STRATEGIC INCOME FUND Class A COSIX Class C CLSCX Class R CSNRX Class R4 CMNRX Class R5 CTIVX Class Z LSIZX NAVIGATING A CHANGING INTEREST RATE ENVIRONMENT Rise to the challenge

More information

DFA INVESTMENT DIMENSIONS GROUP INC.

DFA INVESTMENT DIMENSIONS GROUP INC. PROSPECTUS February 28, 2015 Please carefully read the important information it contains before investing. DFA INVESTMENT DIMENSIONS GROUP INC. DFA ONE-YEAR FIXED INCOME PORTFOLIO Ticker: DFIHX DFA TWO-YEAR

More information

The Master Statement of Investment Policies and Objectives of The Lower Colorado River Authority Retirement Plan and Trust. Amended June 16, 2015

The Master Statement of Investment Policies and Objectives of The Lower Colorado River Authority Retirement Plan and Trust. Amended June 16, 2015 The Master Statement of Investment Policies and Objectives of The Lower Colorado River Authority Retirement Plan and Trust Amended June 16, 2015 Introduction The Lower Colorado River Authority ( LCRA )

More information

Designing The Ideal Investment Policy Presented To The Actuaries Club of the Southwest & the Southeastern Actuarial Conference

Designing The Ideal Investment Policy Presented To The Actuaries Club of the Southwest & the Southeastern Actuarial Conference Designing The Ideal Investment Policy Presented To The Actuaries Club of the Southwest & the Southeastern Actuarial Conference Presented by: Greg Curran, CFA & Michael Kelch, CFA AAM - Insurance Investment

More information

Effective downside risk management

Effective downside risk management Effective downside risk management Aymeric Forest, Fund Manager, Multi-Asset Investments November 2012 Since 2008, the desire to avoid significant portfolio losses has, more than ever, been at the front

More information

A GUIDE TO FLOATING RATE BANK LOANS:

A GUIDE TO FLOATING RATE BANK LOANS: Contact information: Advisor Services: (631) 629-4908 E-mail: info@catalystmf.com Website: www.catalystmf.com A GUIDE TO FLOATING RATE BANK LOANS: An Attractive Investment for a Rising Interest Rate Environment

More information

OAKTREE HIGH YIELD BOND FUND

OAKTREE HIGH YIELD BOND FUND OAKTREE HIGH YIELD BOND FUND Institutional Class OHYIX Advisor Class OHYDX Before you invest, you may want to review the Fund s prospectus, which contains more information about the Fund and its risks.

More information