Investment Objective
Current income and capital appreciation
Morningstar Category
Intermediate Core Bond
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Fund Characteristics
The Bond Fund seeks to outperform the Bloomberg Barclays U.S. Aggregate Index by employing a broad range of fixed income sectors, including up to 5% in non-investment grade holdings.
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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 on diversified, highly liquid, investment-grade debt securities
- The broad sectors represented in the portfolio include corporate debt, mortgage-backed securities, asset backed securities, and U.S. Treasuries
- The Fund retains the flexibility to invest up to 5% of the portfolio in below investment- grade holdings (bonds typically rated BB or B) in an effort to capitalize on market opportunities
- The investment team applies a disciplined
approach that incorporates several risk control measures, position size limits,
a long-term/low turnover rate, and U.S. dollar-only/cash-only orientation
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Why Consider This Fund?
- Seeks to provide investors with a conservative, diversified “core” fixed income portfolio for part of their overall asset allocation mix
- Provides exposure to a distinct investment approach with above market coupon agency mortgage-backed securities that have the potential to produce generous, predictable income
- May offer the potential for higher yields and
returns than the Bloomberg Barclays Aggregate Bond Index
- Tenured team that is dedicated to active fixed income
- Time-tested, repeatable investment process that has demonstrated the ability to generate consistent, competitive returns
- Team-based approach within a global investment boutique
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