The key to our long-term over-performance is a more conservative strategy that focuses first on preservation of capital and then on total return. CAM stresses asset quality and yield relationship – not just yield. The same value style discipline is employed (only North American bonds, industry exposure and portfolio diversification). During the worst environment for High Yield bonds in recent years (in 2008, the Barclays High Yield Index fell 26.16%; the average high yield mutual fund fell 26.48%%), our portfolios declined only 19.61%. Similarly, for the three years ended 2002, the Barclays Index was off a cumulative 3%; our portfolios appreciated by almost 14%. Only the long-term performance statistics can provide evidence of the down market cycle behavior. CAM buys high yield bonds only in the highest two categories, BB and B. Strict security selection criteria results in a 4-6 month initial investment period.

Portfolio investment in the broader high yield bond market is available. CAM's Enhanced High Yield Bond Strategy more closely resembles the credit range and weighting of the high yield index. Up to 20% of the Enhanced High Yield Strategy may be invested in non-rated securities and those rated below B.

High Yield Strategy Profile.pdf

Down Market Performance

CAM’s High-Yield Strategy had good down-market performance in the 2000-2002 bear market and through the entire down/up/down/up market cycle from 2000 through 2009 with lower volatility (Standard Deviation) than the Universe and the Weaker Quality Credits.