Declining Profit Margins, Rising Recession Risks
Regaining Optionality, But At Some Cost
Using Convertibles in Institutional Portfolios
A Sustainable Growth Opportunity
ESG Factors Matter
MacKay Shields' Mission
Our mission is to provide an exceptional value added experience to our clients through a combination of research driven security selection, asset allocation, risk management and client service across fixed income, equity and multi asset portfolios.
Our Value Added Approach
We specialize in taxable and municipal fixed income credit and less efficient segments of global equity markets where proprietary research and unique portfolio construction techniques can generate attractive client oriented outcomes.
Attracting and Retaining Talent
Our unique operating platform has attracted outstanding client centric talent drawn to the dynamic combination of investment independence, a boutique culture, financial strength and institutional quality infrastructure and operational support.
For more information please contact:
John W. Akkerman, CFA, CAIA
Global Head of Distribution
Investment Strategies
All Investment StrategiesInvestment GradeHigh YieldMunicipalsConvertiblesEquitySolutionsDefined Contribution
Investment Grade
High Yield - Global Fixed Income Team
High Yield - High Yield Team
Municipals
Equity
Solutions
Bank Loans
Objective
Bank Loans seeks to outperform the benchmark by eliminating uncompensated risk from investments in bank loans, sometimes referred to as leveraged loans or bank debt. The strategy strives to achieve an information ratio of greater than 1.
Investment Universe
Typically invests in bank loans of below investment grade issuers.
US Convertibles
Objective
Our Convertible Bond strategy seeks to maximize total return by outperforming the market and our competition while protecting against downside risk.
Investment Universe
The entire US Convertible Universe, 400 to 500 companies.
Core
Objective
Core seeks to outperform the benchmark by eliminating or reducing uncompensated risk while allocating across Core sectors. The strategy strives to achieve an information ratio greater than 1.
Investment Universe
Securities are typically found in the Barclays U.S. Aggregate Index, although additional high grade off-benchmark investments may be permitted, including but not limited to Rule 144A securities without registration rights, mortgage dollar roles, TIPS, and floating rate notes.
Core Plus
Objective
Core Plus seeks to outperform the benchmark by eliminating or reducing uncompensated risk while opportunistically allocating investments across a range of core and off-benchmark sectors. The strategy strives to achieve an information ratio of greater than 1.
Investment Universe
Typically invests in the same sectors represented by the Barclays U.S. Aggregate Bond Index, as well as high yield (20%), emerging market debt (10%) and non-US Dollar exposure (10%).
Core Plus Opportunities
Objective
Core Plus Opportunities seeks to outperform the benchmark by eliminating or reducing uncompensated risk while opportunistically allocating investments across a range of core and off-benchmark sectors. The strategy strives to achieve an information ratio of greater than 1.
Investment Universe
Typically invests in the same sectors represented by the Barclays U.S. Aggregate Bond Index, as well as high yield including bank loans (30%), emerging market sovereigns and corporates (10%) and non-US Dollar exposure (10%).
Emerging Markets Equity
Objective
The Systematic Emerging Markets Strategy is a quantitative, bottom-up stock selection strategy which seeks to outperform the MSCI Emerging Markets ND Index, over a full market cycle.
Investment Universe
Stocks within the MSCI Emerging Markets IMI Index are evaluated for consideration in the portfolio.
Floating Rate High Yield
Objective
Floating Rate High Yield seeks to provide a high level of current income. The strategy also seeks to minimize interest rate risk through its emphasis on variable rate debt and investments with short and intermediate maturities.
Investment Universe
The strategy is comprised of a diversified portfolio of leveraged loans and high yield bonds. Securities are typically found in the Credit Suisse Leveraged Loan Index.
Global Equity
Objective
The Global Equity Strategy is a quantitative, bottom-up stock selection strategy which seeks to outperform the MSCI All Country World Index over a full market cycle.
Investment Universe
Stocks within the MSCI All Country World Index are evaluated for consideration in the portfolio.
Global High Yield Active Core
Objective
Global High Yield seeks to outperform the benchmark by eliminating uncompensated risk from investments in below investment grade securities. The strategy strives to achieve an information ratio of greater than 1.
Investment Universe
Typically invests in below investment grade securities using an integrated top down and bottom up approach to management.
Global Multi-Asset
Objective
Global Multi-Asset seeks current income consistent with reasonable opportunity for future growth of capital and income.
Investment Universe
The strategy utilizes a top down and bottom up approach that allocates between 30-70 percent each to equities and fixed-income based on best opportunities in the markets.
High Yield
Objective
High Yield seeks to identify securities that will minimize defaults and maximize yield and capital appreciation.
Investment Universe
The High Yield universe generally consists of below investment grade corporate securities identified through a bottom-up investment approach.
High Yield Active Core
Objective
High Yield Active Core seeks to outperform the benchmark by eliminating uncompensated risk from investments in below investment grade securities. The strategy strives to achieve an information ratio of greater than 1.
Investment Universe
Typically invests in below investment grade securities using an integrated top down and bottom up approach to management.
International Equity All Country (Fundamental)
Objective
The Fundamental International Equity All Country Strategy is a bottom-up investment strategy, incorporating individual company fundamental analysis, industry competitive dynamics, and analysis on secular trends to identify long-term holdings in companies that have the potential for sustainable growth.
Investment Universe
The team seeks investable ideas across all sectors, geographies (except the US), and market capitalizations. The Strategy’s investable universe is not constrained by the benchmark (the MSCI All Country World ex-US Index), therefore research can be conducted on any non-US company, so long as the stock meets the team’s strict fundamental investment criteria regarding sustainability.
International Equity Opportunities
Objective
The International Equity Opportunities Strategy is a quantitative, bottom-up stock selection strategy which seeks to outperform the MSCI EAFE Index over a full market cycle by investing both long (typically 120-140%) and short (typically 20-40%) in international equities, with net exposure expected to be 100%.
Investment Universe
Stocks within the MSCI EAFE IMI Index are evaluated for consideration as either a long or short positions.
Investment Grade Credit
Objective
Investment Grade Credit seeks to outperform the benchmark by eliminating or reducing uncompensated risk from investments in corporate credit securities. The strategy strives to achieve an information ratio of greater than 1.
Investment Universe
Typically invests in the universe of securities represented by the Barclays Credit Index.
Large-Cap Enhanced
Objective
The Large-Cap Enhanced Strategy is a quantitative bottom-up selection strategy which seeks to generate excess returns of 0.5% to 1%, gross of all fees and over a full market cycle, against the S&P 500 Index.
Investment Universe
Stocks within the S&P 500 Index as well as the 200 highest stocks ranked by market capitalization in the S&P 400 Index are evaluated for consideration in the portfolio.
Low Volatility High Yield
Objective
Low Volatility High Yield seeks to earn attractive, risk-adjusted income through a combination of safety and yield.
Investment Universe
The Low Volatility High Yield universe consists solely of higher quality, shorter duration high yield corporate bonds identified through a bottom-up investment approach.
Municipal High Yield
Objective
Municipal High Yield seeks to generate attractive after tax returns by investing primarily in lower investment grade and non-investment grade municipal securities.
Investment Universe
Our Municipal High Yield portfolios may invest in the entire municipal bond universe, including, but not limited to, U.S. Tax-Exempt and/or Taxable investment grade and non-investment grade Municipal Bonds, exchange traded funds, common or preferred shares of closed-end funds and municipal CDS. Portfolios focus on BBB and below rated instruments.
Municipal Investment Grade
Objective
Municipal Investment Grade seeks to generate attractive after-tax returns by investing primarily in investment grade municipal securities.
Investment Universe
Our Municipal Investment Grade portfolios may invest in the entire municipal bond universe, including, but not limited to, U.S. Tax-Exempt and/or Taxable investment grade Municipal Bonds, exchange traded funds, common or preferred shares of closed-end funds and municipal CDS. Portfolios focus on BBB and above rated instruments.
Municipal Short Term
Objective
Municipal Short Term seeks to generate attractive after tax returns by investing primarily in tax-exempt and taxable municipal securities with a maximum portfolio duration of three years.
Investment Universe
Our Municipal Short Term portfolios typically invest in the same sectors represented by the Barclays Municipal Bond 3 Year (2-4) Index, including, but not limited to tax-exempt and taxable municipal securities. Portfolios focus on BBB and above rated instruments.
Select High Yield
Objective
Select High Yield strategy has two primary objectives:
- Seeks to earn a yield higher than the broad high yield market.
- Seeks to maintain a significantly stronger credit profile than the average CCC bond.
Investment Universe
The Select High Yield universe generally consists of below investment grade corporate securities identified through a bottom-up investment approach.
Short Duration High Yield
Objective
Short Duration High Yield seeks to provide an attractive risk adjusted return through eliminating uncompensated risk with investments in below investment grade
securities. The strategy strives to achieve an information ratio of greater than 1.
Investment Universe
Typically invests in below investment grade securities and can also use cash and derivatives to lower the duration of the portfolio, pursuant to client guidelines.
Small-Cap Core
Objective
The Small-Cap Core Strategy is a quantitative, bottom-up stock selection strategy which seeks to outperform the Russell 2000 Index over a full market cycle.
Investment Universe
Stocks within the Russell 2000 Index are evaluated for consideration in the portfolio.
Unconstrained Bond
Objective
Unconstrained Bond seeks to exploit opportunities in the global fixed income markets through a process of multi-sector asset allocation to achieve the highest absolute and risk adjusted return.
Investment Universe
Typically invests in a diversified portfolio of debt or debt-related securities in sovereign, and securitized and credit assets to mitigate risk.
US Equity Opportunities
Objective
The US Equity Opportunities Strategy is a quantitative, bottom-up stock selection strategy which seeks to outperform the Russell 1000 Index over a full market cycle by investing both long (typically 120-140%) and short (typically 20-40%) in US equities, with net exposure expected to be 100%.
Investment Universe
Stocks within the Russell 1000 Index plus the 1,000 most liquid stocks in the Russell 2000 Index are evaluated for consideration as either a long or short position.
Defined Contribution
Mutual
Fund
Fund
Collective Investment Trust
Separate Account
Convertible Bonds
Core Fixed Income
Core Plus
Core Plus Opportunities
Emerging Markets Equity
Global Equity
High Yield Bond
International Equity
Small Cap Core Equity
Unconstrained Bond
Featured Insights
Declining Profit Margins, Rising Recession Risks
Global Fixed Income Team
|
August 13, 2019
August 13, 2019
|
Global Fixed Income Team
2019 Mid-Year Update - Tactical Moves Guide Investors Through Market Uncertainty
Municipal Managers
|
July 23, 2019
July 23, 2019
|
Municipal Managers
Is U.S. Monetary Policy Already Restrictive?
Global Fixed Income Team
|
July 17, 2019
July 17, 2019
|
Global Fixed Income Team
Portfolio Manager Insights: Mid-Year Update
Fundamental Equity Team
|
June 26, 2019
June 26, 2019
|
Fundamental Equity Team
Senior Macroeconomist Appointment
Global Fixed Income Team
|
May 21, 2019
May 21, 2019
|
Global Fixed Income Team
For more information please contact:
John W. Akkerman, CFA, CAIA
Global Head of Distribution
