The Fund underperformed its index in the second quarter of 2016.
Positioning in investment-grade corporate credit and bank loans aided relative results. Our highyield holdings, which we believe to be more defensive in nature, did not keep pace with the overall high-yield segment.
We continue to contend with frail global growth prospects and weak credit fundamentals. Our cautious approach to credit reflects our view that markets can go only so far on accommodative monetary policy and little in the way of accelerated fundamentals.