For the second quarter, the Multi-Manager High Yield Opportunity Fund posted a return of 2.55%, compared with the BofA Merrill Lynch High Yield Master II Constrained Index return of 2.57%. The Funds exposure to emerging market issues contributed to results during the period.
Continuing the trend from last quarter, Loomis Sayles was again the strongest performer among the three sub-advisors. Its portfolio benefited from emerging market positions as well as convertible bond holdings. Sub-adviser Neuberger Berman detracted from relative return due to security selection in utilities and metals/mining, and an underweight to the banking sector.
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.