Investment Process
Our active management focuses on individual security selection and sector diversification. To select individual securities, we combine fundamental bottom up research with quantitative analysis to identify assets with the best combination of risk and return. Portfolios are evaluated on a continual basis against market opportunities in order to identify the best relative value and to maximize total return potential.

We base sector emphasis on a combination of bottom-up and top-down factors. Our research and investment experience reinforces our belief that a strategic allocation across multiple spread sectors enhances returns while reducing risk. Sector emphasis is a result of the investment process rather than a target. This bottom-up approach to actively managing portfolios is a crucial element in adding value over the long term. The Opportunistic High Income strategy is more concentrated than a typical broad market mandate, but we maintain strategic ranges within the identified opportunity sets to ensure that portfolios are optimally diversified.

Investment Universe
Eligible securities include investment grade and below investment grade mortgage backed securities (pass throughs, CMOs, CMBS and Remics), corporate securities (144a paper and non-domestic U.S. dollar denominated securities), and asset backed securities. Other eligible securities include credit default swaps, trust preferreds, convertibles, master limited partnerships, and diversified pools that hold eligible securities. Interest rate swaps, futures and option contracts are also permitted for hedging purposes.