The Multi-Manager High Yield Opportunity Fund lagged the benchmark during the quarter with a return of 2.78%, compared with the benchmark return of 2.99%. The Funds overweight to CCC-rated securities added value during the quarter, while an underweight to BB detracted. Following a difficult 2013, emerging market debt rebounded in February and March. The Funds exposure to emerging market bonds contributed to results.
Two of the Funds three sub-advisers underperformed for the quarter. Loomis Sayles delivered the best results, outperforming by 71 basis points (0.71%). Both Neuberger Berman and DDJ lagged during the three-month period.
If you're looking for a total-return-oriented high yield fund that's designed to provide competitive performance in a broad range of market environments, you may want to consider the Multi-Manager High Yield Opportunity Fund. The highly diversified, multi-style Fund can invest in high yield corporate securities as well as foreign bonds, emerging markets, bank loans, convertibles, preferreds, mortgages, REITs, equities, munis and closed-end high yield funds. Despite the Fund's opportunistic investment strategy, it can be used as the primary high yield allocation in portfolios.
- Strive to maintain a highly diversified, opportunistic investment strategy that can invest in high yield corporate securities as well as foreign bonds, emerging markets, bank loans, convertibles, preferreds, mortgages, REITs, equities, municipals and closed-end high yield funds.
- Select complementary manager from a broad universe of investment managers.
- Blend managers into a single fund in an effort to provide an attractive combination of risk and return.