The Multi-Manager High Yield Opportunity Fund outperformed during the quarter with a return of 3.13%, compared with the benchmark return of 2.89%. The Funds overweight exposure to lower-rated securities once again added value, as lower-quality issues continued to outperform.
Higher-beta sub-advisers Loomis Sayles and DDJ both outperformed during the quarter, which was within expectations given market conditions. Neuberger Bermans performance was more in line with the market, reflecting their more conservative portfolio profile.
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.