Investment Objective
Current income generation and relative stability of capital
Morningstar Category
Short-Term Bond
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Fund Characteristics
The Income Fund strives to produce
consistent risk-adjusted returns with high current income while maintaining a
diversified portfolio of investment-grade, liquid fixed-income securities.
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Investment Approach
- Combines macro-economic impacts to determine the expected future path of interest rates and economic cycles with fundamental research to help identify relative value and desirable characteristics
- Emphasis is on building a diversified portfolio comprised of high quality, liquid securities. Issue selection is on a bottom-up basis with an emphasis on sound fundamentals
- The broad sectors represented in the portfolio will include high quality corporate bonds, mortgage-backed securities, and asset-backed securities
- The Fund retains the flexibility to invest
up to 10% of the portfolio in BBB rated securities, the lower category of
investment grade, in an effort to capitalize on market opportunities
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Why Consider This Fund?
- May offer the potential for higher yields than traditional short-term bond funds
- Provides exposure to a distinct investment approach with above-market coupon agency mortgage-backed securities that have the potential to produce generous, predictable income
- Limited interest rate risk may help to protect
investors against an unexpected rise in interest rates compared to core
duration mandates
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