High yield is the real deal, Clark says

AUG 26, 2012
By  MFXFeeder
Brendan Clark, president of Clark Capital Management Group, has been using exchange-traded funds to take advantage of what the bond market is offering, and right now that means high yield. “In the interest rate environment we're in and moving into, which is dramatically different from the past 30 years, an opportunistic approach is required,” he said. Mr. Clark said that ETFs allow him to manage a fixed-income separately managed account portfolio dynamically. Using a relative-strength research process, he moves freely and sometimes quickly between exposure to high-yield and high-quality corporate bonds and short-term Treasuries. The portfolio is favoring high yield, with 45% allocations to iShares iBoxx High Yield Corporate Bond ETF (HYG) and SPDR Barclays Capital High Yield Bond ETF (JNK). The portfolio is rounded out with 5% allocations to iShares JPMorgan USD Emerging Markets Bond ETF (EMB) and iShares S&P U.S. Preferred Stock Index ETF (PFF). The strategy, which Mr. Clark launched in 2004, took on its high-yield slant early last month. Before that was a three-month stretch during which the portfolio tilted toward higher-quality bonds. Although the portfolio has seen some major adjustments this year, it was “solidly in the high-yield camp” from April 2009 through August 2011, Mr. Clark said. For the first six months of this year, the separate account gained 2.6%, net of fees, which compares with a 2.4% gain by the Barclays U.S. Aggregate Bond Index over the same period. Portfolio Manager Perspectives are regular interviews with some of the most respected and influential fund managers in the investment industry (InvestmentNews.com/ pmperspectives). [email protected] Twitter: @jeff_benjamin

Latest News

'Bogged down' advisors just want to have fun (again)
'Bogged down' advisors just want to have fun (again)

Jim Cahn, of Wealth Enhancement Group, lifts the lid on his firm's partnership model, his views on RIA M&A, and the widely slept-on reason why advisors are merging into larger organizations.

Vestwell unveils new emergency savings account offering
Vestwell unveils new emergency savings account offering

The fintech firm is cementing its status in the workplace savings space with its latest ESA offering, which employers can integrate into their existing benefits package.

'Money Mimosas' and other ways to show your Valentine financial love
'Money Mimosas' and other ways to show your Valentine financial love

Wealth managers offer unique ideas for couples to grow closer emotionally and financially.

Limra research finds financial confidence on the rise among Black American workers
Limra research finds financial confidence on the rise among Black American workers

Survey findings suggest increased sense of financial security and more optimistic 2025 outlook, while highlighting employers' role in ensuring retirement readiness.

DOGE efforts sideswipe muni bonds backed by federal lease payments
DOGE efforts sideswipe muni bonds backed by federal lease payments

Falling prices for some securities within the $4 trillion state and local government debt market spotlight how the push to shrink spending is sending shockwaves across the US.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.