Bank Loan Fixed Income

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Francesco Moreno
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About Bank Loan Fixed Income

The strategy, managed by a team with deep experience investing together through multiple market cycles, utilizes the full breadth of the firm’s fundamental research capabilities to identify companies across the market cap spectrum in order to exploit inefficiencies resulting in a differentiated portfolio.

Investment Process

Investment Objective:

Seeks to outperform the Credit Suisse Leveraged Loan Index over a full market cycle.

Investment Overview:

We believe markets are inefficient, and that these inefficiencies can best be exploited through adherence to a valuation centric investment process dedicated to the selection of securities on a bottom-up basis.  Additional market forces of rate volatility, market liquidity, new issue underwriting activity and fund flows, among other influences, create inefficiencies that provide trading opportunities.  Barrow Hanley’s fundamental credit research allows our team to accurately price the risk of loss and generate above market returns.

~1,400
Loans in Credit Suisse Leveraged Loan Index
~1,000
Loans remaining after
exclusionary screens
~800
Loans remaining after
quantitative screens
~300
Loans remaining
Post-screening and subject
to rigorous fundamental
analysis by BH
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Liquid and Performing
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Attractive Value
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Macro Awareness
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Industry Positioning
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Credit Cycle Overlay

Strategy Summary

as of 9/30/2021
Asset Class
US Fixed Income
Investment Style
Bottom-Up Security Selection
Portfolio Benchmark
Credit Suisse Leveraged Loan Index
Commingled Fund
Open
Separate Account
Open

Additional Information

Media Spotlight

Mark Giambrone Discusses Midterm Elections and Markets on Fox Business
November 7, 2018
View on FoxBusiness.com
Mark Giambrone Discusses Market Trends on CNBC
November 6, 2018
View on CNBC.com>

Portfolio Characteristics

as of 9/30/2021
Portfolio
Credit Suisse Leveraged Loan Index
Average Loan Rating
B1/B2
B2/B3
Top Industry Weight
12.1%
14.6%
Top Industry
Healthcare
Information Technology
Beta
0.9
1.0
Yield to Maturity
5.3%
5.0%

Performance

Annualized Portfolio Returns as of 9/30/2021
Qtr*
1 Year
3 Year
Since Inception**
Bank Loan Fixed Income - Gross Returns
1.23%
8.86%
4.82%
5.25%
Bank Loan Fixed Income - Net Returns
1.10%
8.35%
4.31%
4.74%
Credit Suisse Leveraged Loan Index
1.13%
8.46%
4.09%
4.30%

* Most recent quarter returns are not annualized. Past performance does not guarantee future results and there is no assurance that the Strategy will achieve its investment objective.
** Inception Date: 6/1/18

Disclosure

Sources for data noted above are from APX, Credit Suisse and Bloomberg Index Services Limited as of the date specified.

Barrow Hanley gross returns are shown before investment management fees and custody expenses. Index returns do not reflect transaction costs, management fees, and other expenses. Performance is expressed in U.S. currency. Net returns are calculated using a model fee. The model fee is based on the highest tier of our standard fee schedule. Barrow, Hanley, Mewhinney & Strauss, LLC claims compliance with the Global Investment Performance Standards (GIPS®).

Credit Suisse Index data is permissible for use by Barrow Hanley for client reporting and marketing purposes.  This data is not permitted to be re-distributed.

All institutional product information has been provided by Barrow, Hanley, Mewhinney & Strauss, LLC. Any questions about this material or requests for additional information may be made directly to the firm by contacting us here.

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