In dollar assets, the fund holds 18% of its portfolio in high yield corporate bonds, 14% in Treasuries and 3% in cash and equity. Cavanaugh notes the high-yield allocations remain diverse, listing leisure, transportation, and utilities as some of the sectors in which he invests. He declined to mention any specific company names. Cavanaugh states that high-yield spreads are currently pretty tight and he doesn't see much value left there, although he doesn't plan to change the existing allocation. "We think that high yield had a fabulous year last year," he notes, adding that he expects spread widening as this year continues. He says he is watching the U.S. economy very closely and that if it shows some strength in the coming months he might be attracted to the high yield market more quickly as spreads would likely tighten further. He'll also look at possibly adding junk bonds if high-yield spreads widen and create a buying opportunity. Cavanaugh gauges the fund's performance against the Lipper Multi-Sector Income Fund. The firm manages more than $10 billion in fixed income.