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High Yield
(as of December 31, 2009)
Philosophy
The objective of our High Quality High Yield fixed income discipline is to enhance portfolio return over time through superior credit selection. SCM blends top down macro-economic analysis with bottom up issue research to build portfolios. Overall credit quality is higher than a traditional high yield portfolio, as we believe the BB and B areas of the credit spectrum offer better risk adjusted returns over a market cycle.

Portfolio
Characteristics		PortfolioBarclays
HY
Weighted Average Price101.0995.28
Coupon*8.68%8.31%
Yield to Maturity8.37%9.20%
Yield to Worst8.07%9.06%
Option Adjusted Duration3.854.30
Weighted Average Life4.576.08
Option Adjusted Spread476.79616.54
Moody's RatingB2B2
S&P RatingB+B
Source: Barclays Capital
*Average coupon excludes cash equivalents

Top Ten
Credit Issuers in Portfolio		% of
Portfolio
HCA Inc/DE3.1%
Biomet Inc2.5%
Affinion Group Inc2.5%
CSC Holdings LLC2.4%
NII Capital Corp2.2%
DI Finance/DynCorp International2.2%
Icahn Enterprises LP / Icahn Enterprises Finance Corp2.1%
Hughes Network Systems LLC/HNS Finance Corp2.0%
Sungard Data Systems Inc1.8%
GCI Inc1.8%
Percentages reflect only credit issues with maturity of one year or greater

Sector
Weightings		% of
Portfolio		Barclays
HY
Basic Industry 1.2%8.3%
Capital Goods 4.4%6.6%
Cash 1.4%0.0%
Communications 25.9%16.6%
Consumer Cyclical 27.7%19.7%
Consumer Non-Cyclical 21.4%11.0%
Energy6.4%7.9%
Financial 4.1%12.2%
Industrial (Other)0.9%1.6%
Technology 3.8%4.9%
Transportation 0.0%2.4%
Utilities 2.8%8.8%
Source: Barclays Capital
Totals may not add up to 100% due to rounding.

Sector Weightings
Source: Barclays Capital
Totals may not add up to 100% due to rounding.

Quality
Breakdown		% of
Portfolio		Barclays
HY
Aaa1.4%0.0%
Aa0.0%0.0%
A0.0%0.0%
Baa1.1%0.0%
Ba36.8%37.3%
B50.6%34.7%
<B9.6%24.7%
NR0.4%3.2%
Source: Barclays Capital
SCM Composite Ratings
Totals may not add up to 100% due to rounding.
Quality Breakdown
© SCM Advisors LLC 2009.