High Yield - Short Duration

While high yield by its nature is a shorter duration asset class than its investment grade counterpart, we believe there are many opportunities at the very front end of the curve. A strategy that focuses on this very short duration segment of the market aims to offer investors the ability to invest in a fixed income asset class with reduced exposure to duration risk. This may prove beneficial during a rising rate environment.

The strategy aims to control volatility and the impact of rising interest rates by investing in lower duration corporate bonds, primarily rated BB-B. The strategy places a limit on overall portfolio duration of two years and primarily invests in the US market. Like our standard duration high yield strategies, this short duration high yield strategy seeks to mitigate risk by broadly diversifying exposure across sectors, industries, and issuers.