High Yield Bond
Virginia State Capital
Capitol District; Richmond, VA
Virginia State Capital
Capitol District; Richmond, VA
About High Yield Bond
Investment Objective
Over a full market cycle, the Income team seeks to provide a return, net of our management fee, that outperforms the ICE® Bank of America Merrill Lynch US High Yield BB-B (Constrained 2%) Index.
Investment Overview
The Income team seeks to identify opportunities within high yield corporate credit that generate strong current income and total return potential per unit of risk taken. The team combines fundamental credit work, relative value analysis, and a macroeconomic overlay in portfolio construction. Focus is placed on higher quality non-investment grade credit (primarily BB and B rated) although positions in CCC bonds are opportunistically added when risk/reward is believed favorable.
Strategy Highlights
Repeatability: a tenured team executing a consistently applied process
A time-tested approach
- Combining bottom-up credit analysis, relative-value, and a macro economic overlay
- Seeking to generate a higher yield versus the benchmark while maintaining an attractive risk/reward profile
- Thoughtful capacity considerations afford opportunities to make meaningful investments in opportunities often overlooked by larger-sized mandates
- CCC and below rated credit limited to 20%
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High Yield Bond Trailing Performance
September 30, 2024
Calendar year performance reflects past 10 years of data available.
Benchmark: ICE® Bank of America Merrill Lynch US High Yield Constrained. The ICE BofAML US High Yield Index tracks the performance of U.S. dollar denominated below investment grade rated corporate debt publicly issued in the U.S. domestic market. The Index limits any individual issuer to a maximum of 2% Index exposure. Benchmark Source: FactSet
Periods less than one year are not annualized. Performance represents the High Yield Bond composite. Performance is shown gross and net of management fees and includes reinvestment of dividends and other income. Gross returns will be reduced by investment advisory fees and other expenses that are incurred in the management of the account. Net of fee performance was calculated using the actual management fees charged. These figures have been rounded to the nearest hundredth. Past performance is no guarantee of future results. It is not possible to invest directly in an index. Performance disclosures can be found here.
Please see Risk Disclosures for important information.
Calendar year performance reflects past 10 years of data available.
Benchmark: ICE® Bank of America Merrill Lynch US High Yield Constrained. The ICE BofAML US High Yield Index tracks the performance of U.S. dollar denominated below investment grade rated corporate debt publicly issued in the U.S. domestic market. The Index limits any individual issuer to a maximum of 2% Index exposure. Benchmark Source: FactSet
Periods less than one year are not annualized. Performance represents the High Yield Bond composite. Performance is shown gross and net of management fees and includes reinvestment of dividends and other income. Gross returns will be reduced by investment advisory fees and other expenses that are incurred in the management of the account. Net of fee performance was calculated using the actual management fees charged. These figures have been rounded to the nearest hundredth. Past performance is no guarantee of future results. It is not possible to invest directly in an index. Performance disclosures can be found here.
Please see Risk Disclosures for important information.
Quality Rating
September 30, 2024
Portfolio Characteristics
September 30, 2024
Benchmark: ICE® BofA U.S. High Yield Constrained Index. Source: FactSet (October 2024). Characteristics are subject to change. Due to rounding, totals may not add up to 100.0%. Credit quality breakdown is based on ratings from Standard and Poor's and Moody’s credit rating agencies. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). A bond rated AAA is the most creditworthy, while a bond rated BB or below is much riskier.
Benchmark: ICE® BofA U.S. High Yield Constrained Index. Source: FactSet (October 2024). Characteristics are subject to change.
Meet Our Team
Bill is a graduate of Cornell University, BS and Duke University, MBA. He previously worked for Merrill Lynch Capital Markets as an Assistant Vice President, Clayton Brown & Associates as a Vice President, First Union Capital Markets as a Vice President and Trusco Capital Management as a Vice President. He holds the Chartered Financial Analyst® designation and is registered as an Investment Adviser Representative. Check the Background of this Investment Professional here.
David is a graduate of Virginia Polytechnic Institute & State University, BS. He previously worked for Trusco Capital Management as a Portfolio Analyst and Crestar Asset Management as a Trading Assistant. He holds the Chartered Financial Analyst® designation.
Charles is a graduate of the University of Delaware, BS, and Wake Forest University, MBA. He previously worked for The Trust Company of Virginia as a Fixed Income Portfolio Manager, Sterne Agee as a Credit Analyst, and BB&T Capital Markets as a Credit Analyst. He holds the Chartered Financial Analyst® designation.
1Investing involves risk including loss of principal. For more information pertaining to the mutual fund products above, including investment objectives, risks, charges and expenses, obtain a prospectus. Read the prospectus carefully before investing or sending money. Neither this material nor any accompanying oral presentation or remarks by a representative of the distributors is intended to constitute a recommendation of the funds or a determination of suitability for any investor. Important information about the Fund can be found in the prospectus or summary prospectus which can be obtained at www.perpetual.com or by calling 1‑866‑260‑9549 or 1‑312‑557‑5913. Please read the prospectus or summary prospectus carefully before investing. The Perpetual Americas Funds are advised by Perpetual Americas Funds Services and distributed through Perpetual Americas Funds Distributors, LLC, member FINRA. The Perpetual Americas Funds are not FDIC‑insured, may lose value, and have no bank guarantee.
Data as of 09/30/2024
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Suite 600
Richmond, VA 23230
You are leaving TSW
You are now leaving the TSW website. This link is provided as a convenience, and Thompson, Siegel & Walmsley is not responsible for the content provided on your destination site.
You are leaving TSW
You are now leaving the TSW website. This link is provided as a convenience, and Thompson, Siegel & Walmsley is not responsible for the content provided on your destination site.
You are leaving TSW
You are now leaving the TSW website. This link is provided as a convenience, and Thompson, Siegel & Walmsley is not responsible for the content provided on your destination site.
