Income focused, total return strategy that will primarily invest in companies with credit ratings of BBB and BB, with flexibility to invest up to 65% of capital in BB-rated bonds or up to 100% in BBB.
1 Not every investment opportunity will meet all of the stringent investment criteria mentioned to the same degree. Trade-offs must be made, which is where experience and judgment play a key role. Accounts are invested at the discretion of the portfolio manager and may take up to 60 days to become fully invested.
| Average Duration† |
3.60 |
| Average Maturity | 4.20 |
| Average Coupon | 4.92% |
| Current Yield | 5.08% |
| Yield To Worst | 5.64% |
| Account Minimum |
$250,000 |
Descriptions and Definitions
The Bloomberg Intermediate Baa Corporate Index consists of Baa-rated corporate debt with maturities between 1-10 years. The Bloomberg Intermediate Ba Corporate Index consists of Ba-rated corporate debt with maturities between 1-10 years.
Market Axess and Bloomberg Liquidity Assessment are third-party tools which help estimate liquidation cost and horizon at a position level under current market conditions and stress scenarios.
Duration - is a measure of the average life of a bond, weighting each repayment by the time until it will be made and reflecting the fact that money flows in the near future are more valuable than the same money flows at a later date. Duration indicates how changes in interest rates will affect the price of a bond (or bond portfolio). The longer the duration of a bond, the greater the extent to which its price is affected by interest rate changes. As such, duration is used as a measure of risk for bond portfolios.
Maturity - The date on which a loan or bond comes due and is to be paid off.
Yield-To-Worst - The lowest possible yield that can be received on a bond assuming no default. Yield-to-worst is calculated on all possible call dates and makes worst-case scenario assumptions on the issue by calculating the returns that would be received if provisions, including prepayment, call, or sinking fund, are used by the issuer. The yield-to-worst will be the lowest of yield-to-maturity or yield-to-call (if the bond has prepayment provisions); yield-to-worst may be the same as yield-to-maturity, but never higher.
Standard Deviation – Standard Deviation is a measure of the dispersal or uncertainty in a random variable. For example, if a financial variable is highly volatile, it has a high Standard Deviation. Standard Deviation is frequently used as a measure of the volatility of a random financial variable.
†Effective duration is used for our taxable portfolios because it takes into consideration the embedded options and fluctuations in cash flows for structured products like mortgage-backed securities and asset-backed securities.
BLOOMBERG, BLOOMBERG INDICES and Bloomberg Fixed Income Indices (the "Indices") are trademarks or service marks of Bloomberg Finance L.P. Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited, the administrator of the Indices (collectively, "Bloomberg") or Bloomberg’s licensors own all proprietary rights in the Indices. Bloomberg does not guarantee the timeliness, accuracy or completeness of any data or information relating to the Indices.
Bond Ratings: Ratings are by Moody’s or Standard and Poor's (S&P). Ratings provided by nationally recognized statistical rating organizations, also called ratings agencies, are appraisals of a particular issuer’s creditworthiness, including the possibility that the issuer will not be able to pay interest or repay principal. Ratings are not recommendations to buy, sell or hold a security, nor do ratings remove market risk. Securities with the same rating can actually trade at significantly different prices. In addition, ratings are subject to review, revision, suspension, reduction or withdrawal at any time, and a rating agency may place an issuer under review or credit watch. Individual investors may request Moody’s and S&P credit reports from their financial professionals. More about ratings is available at moodys.com and standardandpoors.com.
Managing Director, Portfolio Manager
35 Years Of Industry Experience
27 Years With Eagle Asset Management
Portfolio Manager
23 Years Of Industry Experience
6 Years With Eagle Asset Management
Portfolio Co-Manager, Head of Corporate Bond Research
25 Years Of Industry Experience
20 Years With Eagle Asset Management
| Current Quarter |
Year to Date |
One Year |
Three Years |
Since Inception (Jan. 1, 2020) |
||
|---|---|---|---|---|---|---|
|
Eagle Corporate Credit Opportunity Strategy |
Gross |
3.84% | 5.97% | 12.21% | 1.22% | 3.21% |
|
Eagle Corporate Credit Opportunity Strategy |
Net |
3.07% | 3.62% | 8.91% | -1.80% | 0.15% |
|
50% BBg Int Baa Corp / 50% BBg Int Ba Corp |
4.51% | 6.37% | 13.49% | 1.82% | 3.06% |
| 2023 | 2022 | 2021 | 2020 | ||
|---|---|---|---|---|---|
| Eagle Corporate Credit Opportunity Strategy | Gross | 9.64% | -10.68% | 1.37% | 10.44% |
| Eagle Corporate Credit Opportunity Strategy | Net | 6.41% | -13.41% | -1.63% | 7.24% |
|
50% BBg Int Baa Corp / 50% BBg Int Ba Corp |
9.67% | -9.57% | 1.65% | 7.60% |
Risk Information
Historically, bonds have indeed provided less volatility and less risk of loss of capital than has equity investing. However, there are many factors which may affect the risk and return profile of a fixed-income portfolio. The two most prominent factors are interest-rate movements and the creditworthiness of the bond issuer. The risk of a change in the market value of the investment due to changes in interest rates is known as interest-rate risk. Interest-rate risk is subject to many variables but may be analyzed based on various data (e.g., effective duration). The risk that the issuer may default on interest and/or principal payments is often referred to as credit risk. Credit risk is typically measured by ratings issued by ratings agencies such as Moody’s and Standard & Poor’s. Bonds issued by the U.S. Government have significantly less risk of default than those issued by corporations and municipalities. However, the overall return on Government bonds tends to be less than these other types of fixed-income securities. Finally, reinvestment risk is the possibility that the proceeds of a maturing investment must be invested in a lower yielding security, all other things held constant, due to changes in the interest-rate environment. Investors should pay careful attention to the types of fixed-income securities which comprise their portfolio, and remember that, as with all investments, there is the risk of the loss of capital.
(1)Performance Disclosures
The calculation of the performance data includes reinvestment of all income and gains and is depicted on a time-weighted and size-weighted average for the entire period. Performance is shown after deduction of transaction costs and both "gross" (before the deduction of management fees) and "net" (after the deduction of management fees). The net returns reflect the application of the highest wrap fee of 3% annum. Performance figures include all internal, retail Corporate Credit Opportunity Strategy accounts of Eagle Asset Management, a St. Petersburg, Florida-based firm. No inference should be drawn by present or prospective clients that managed accounts will achieve similar investment performance in the future. Past performance does not guarantee future results. Because accounts are individually managed, returns for separate accounts may be higher or lower than the average performance stated in the charts. Investing in equities may result in a loss of capital. A client’s return will be reduced by the advisory fees. Eagle’s fees are set forth in Eagle’s Form ADV, Part II. Over a period of five years, an advisory fee of 1 percent could reduce the total value of a client’s portfolio by 5 percent or more. Realized fees may differ depending on the agreed upon fee schedule for your particular account. Net returns are calculated using a max wrap fee of 3% for this strategy.
Descriptions and Definitions
The Bloomberg Intermediate Baa Corporate Index consists of Baa-rated corporate debt with maturities between 1-10 years. The Bloomberg Intermediate Ba Corporate Index consists of Ba-rated corporate debt with maturities between 1-10 years.
BLOOMBERG, BLOOMBERG INDICES and Bloomberg Fixed Income Indices (the "Indices") are trademarks or service marks of Bloomberg Finance L.P. Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited, the administrator of the Indices (collectively, "Bloomberg") or Bloomberg’s licensors own all proprietary rights in the Indices. Bloomberg does not guarantee the timeliness, accuracy or completeness of any data or information relating to the Indices.
To obtain a compliant presentation and/or the firm's list of composite descriptions, please contact Eagle Asset Management at 1.800.237.3101.
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