SIM US High Yield

The SiM US HY strategy is a high conviction, concentrated, high alpha generating strategy with a high active share and a pragmatic flexible approach to investing in US HY. Over the cycle the strategy aims to outperform the benchmark with 2% annualized with similar risk characteristics.

 

Why US High Yield?

High yield is an ideal diversifier with low correlations to other asset classes and provides a high Sharpe Ratio with high absolute returns comparable to equity. The recovery periods from drawdowns are historically short and down years have been both rare and shallow. Within High Yield, the US market is the deepest and most mature, with the broadest diversity in industry exposure and geographic exposure.

 

Why SiM for US High Yield?

  • Unique 3 pillar strategy, which has worked for over 20 years, outperforming benchmark and most peers
  • Concentratred high conviction portfolio with a high active share
  • ESG intergrated in investment process
  • Employee owned, full alignment as investment team invests alongside investors

 

Who is Strategic Income Management?

Strategic Income Management, LLC (SiM) is an independent and 100% employee-owned company  dedicated to the goal of providing superior high yield  fixed income investment management for institutional clients. Combining a high quality, focused and experienced team with proven investment approaches provides the foundation for achieving long-term client objectives.

 

Principal Investment philosophy

SIM believes that active management based on long term investment horizon is able to outperform the markets over time: The investment philosophy is based on the premise that a core portfolio, built around long-term trends, and within the appropriate industries will outperform over a cycle and provide stability and downside protection. Additional alpha is added by investing in small cap bond issuers, out-of-favor industries, and non-traditional high-yield instruments.

SIM US High Yield Fund Documents