For the quarter, the BofA Merrill Lynch High Yield Master II Constrained Index gained 3.49%. The Multi-Manager High Yield Opportunity Fund finished the quarter behind the benchmark with a return of 3.16%.
Fund underperformance was driven by sub-adviser Loomis Sayles, due to their yield curve positioning. The portfolios exposure to non-U.S. dollar assets also represented a drag on relative results. For calendar year 2013, the Fund returned 6.67% compared with the benchmark return of 7.41%.
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.