AMI’s High Yield Fixed Income objective is to provide growth of capital with income as a secondary objective.  It is suitable for most taxable and tax-exempt investors looking for diversification from their equity and investment grade fixed income exposure as well as those desiring a high degree of current income.

 

Overview

  • Portfolios may be invested in corporate bonds and other debt, and debt-like instruments rated below investment grade.
  • Our disciplined, research driven approach starts with a top-down analysis of the economy to determine which sectors are likely to perform best over our 12-18 month outlook. We also consider the relative valuation of each sector as compared to its historical mean as well as to that of other sectors. This provides our sector weightings and industry allocations.
  • Issue selection is determined by a bottom-up fundamental analysis of each issuer and issue using independent external sources as well as internal proprietary research.
  • Corporate bonds are examined for their ability to deleverage their balance sheets, increase interest coverage and achieve fundamental financial improvement so as to achieve ratings upgrades resulting in bond price appreciation (spread tightening).
  • Portfolios are separately managed and no derivatives, hedging or leveraged strategies are used. Additionally, portfolios can be easily customized to meet client requests including cash flow needs, yield requirements, sector exposure and maturity limitations.

 

Click on each chart below to see a larger version.

 

   

 

 

 

TOP TEN HOLDINGS*
1. 

Lennar Corp.

4.750% Due 11-15-22

2.21%
2

CCO Holdings LLC

5.750% Due 11-15-22

2.18%
3

International Game Technology

7.500% Due 06-15-19

 
2.17%
4

Sabine Pass Liquefaction LLC

5.625% Due 03-01-25

2.06%
5

HCA Holdings Inc

6.250% Due 02-15-21

2.05%
6

Southern CA Edison Co

6.250% Due 12-31-49

2.05%
7

International Lease Finance Corp.

5.875% Due 08-15-22

2.04%
8

Toll Brothers Finance

5.625% Due 01-15-24

2.01%
9

Speedway Motorsports

5.125% Due 02-01-23

1.99%
10

Edgewell Personal Care Co.

4.700% Due 05-24-22

1.99%

*As of 3-31-17. Holdings are subject to change.  The securities identified and described above do not represent all of the securities purchased, sold or recommended for client accounts. The reader should not assume that an investment in the securities identified was or will be profitable.  A complete list of all buy and sell recommendations for this strategy within the last 12 months is available upon request.  AMI Asset and/or one or more of its employee may have a position in these securities and may purchase and sell such securities from time to time.

 

 

PORTFOLIO CHARACTERISTICS*
  AMI

BofA 1-10

BB-B High Yield Index

Credit Quality  BB BB-
Effective Maturity  3.47 Years 4.06 Years 
Modified Duration  3.01 Years  3.41 Years 
Yield to Maturity  4.55% 5.22%
Yield To Worst  3.89% 4.75%
Coupon  5.67% 6.20%
*As of 03-31-17.  Source – AMI, Russell, iShares, Standard and Poors. The above information is based on a representative account and clients accounts may vary.  The portfolio characteristics information is being presented as supplemental information to the AMI High Yield Capital Appreciation Composite.   

 

 

AMI 1st Quarter 2017 High Yield Fixed Income Factsheet

 

 


* as of 03/31/2017