StrategiesHigh Yield
| BOND PORTFOLIO CHARACTERISTICS | Portfolio | ICE BofA BB-B |
|---|---|---|
| Current Yield | 6.9% | 6.5% |
| Yield-to-Worst | 7.1% | 6.3% |
| Modified Duration | 2.9 years | 3.0 years |
| Spread over Treasuries | 325 bps | 226 bps |
| Number of Active Issuers | 173 | 774 |
| TOP FIVE OVER/UNDERWEIGHTS (%)1 | PORTFOLIO | COMPARED TO ICE BOFA BB-B |
|---|---|---|
| Chemicals - Industries | 6.9 | 3.6 |
| Energy | 14.0 | 2.3 |
| Consumer and Capital Goods | 11.9 | 1.3 |
| Automotive | 4.4 | 1.3 |
| Media | 7.9 | 1.2 |
| Satellite & Wireless - Telecom | 0.4 | -1.7 |
| Real Estate | 2.5 | -1.8 |
| Retail | 4.4 | -1.9 |
| Wireline & Services - Telecom | 1.6 | -2.0 |
| Utility | 1.3 | -2.5 |
ASSET ALLOCATION (%)1
| ASSET ALLOCATION (%)1 | |
|---|---|
| Bonds | 88.2 |
| Bank Loans | 6.6 |
| Cash & Other | 4.1 |
| Preferreds | 1.0 |
BOND CREDIT QUALITY (%)1
| BOND CREDIT QUALITY (%)1 | Portfolio | ICE BofA BB-B |
|---|---|---|
| Investment Grade | 1.3 | 2.9 |
| BB | 43.1 | 61.3 |
| B | 44.4 | 35.1 |
| CCC+ or Lower | 5.9 | 0.2 |
| Non-Rated | 2.0 | 0.5 |
| Cash & Equivalents | 3.3 | 0.0 |
1 % of Total Portfolio
Data source: H&W, ICE BofA, Bloomberg
Information provided is based on a representative portfolio of the High Yield strategy. Asset allocation, sector weights, and characteristics may vary due to different restrictions, cash flows, and other relevant considerations; characteristics shown without the impact of fees and expenses. H&W selected the representative portfolio based on non-performance criteria. The High Yield representative portfolio reflects the management style of the strategy, is part of the strategy’s composite, and has the longest duration under the Adviser’s discretion. Selection of the representative portfolio considers one or more of the following factors, such as the portfolio’s investment guidelines/restrictions, cash flow activity, or duration under the Adviser’s discretion. The representative portfolio is used for informational purposes only, does not predict future portfolio characteristics, and may differ from other portfolios in the strategy due to asset size, client guidelines, and other variables.
Bond credit quality weights are derived from the highest bond rating as determined by S&P or Moody’s. In limited situations where neither rating agency has issued a formal rating, the Advisor will determine an internal rating. Number of Active Issuers excludes calls/tenders/restructured issuers that are being liquidated. Basic Industry (Industries) and Telecom sectors disclosed at industry level. % in CCC+ or Lower includes credits not rated by the major rating agencies that H&W believes exhibit characteristics comparable to CCC+ or Lower-rated credits.
The ICE BofA index data referenced is the property of ICE Data Indices, LLC (“ICE BofA”) and/or its licensors and has been licensed for use by Hotchkis & Wiley. ICE BofA and its licensors accept no liability in connection with its use. See Index definitions for full disclaimer. Any indices and other financial benchmarks shown are provided for illustrative purposes only, are unmanaged, reflect reinvestment of income and dividends and do not reflect the impact of advisory fees. It is not possible to invest directly in an index.
All investments contain risk and may lose value. Investing in high yield securities is subject to certain risks, including market, credit, liquidity, issuer, interest-rate, inflation, and derivatives risks. Lower-rated and non-rated securities involve greater risk than higher-rated securities. Investing in debt securities typically decreases in value when interest rates rise. This risk is usually greater for longer-term debt securities.