Bond Fund

Investment Objective

Current Income and Capital Appreciation

Morningstar Category
Intermediate Core-Plus Bond

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 10% in non-investment grade holdings.

Investment Approach

  • A core fund benchmarked against the Bloomberg Barclays U.S. Aggregate Index.
  • Broad sectors represented in the portfolio include government securities, corporate debt securities, mortgage-backed securities and asset-backed securities.
  • Long-only, cash only, U.S. dollar denominated only and unlevered.
  • Has the flexibility of having 10% in non-investment grade holdings (bonds typically rated BB or B).
  • Duration is a range +/- 10% of the benchmark.

Why Consider This Fund?

  • Seeks to offer a conservative, diversified core fixed income portfolio with a duration similar to that of the Bloomberg Barclays Aggregate Index
  • Seeks diversified alpha sources, which include corporate, mortgage-backed, asset-backed, and Treasury securities
  • Focuses on outperforming its benchmark through a security selection process that adheres to a time-tested, disciplined approach
  • Managed by an experienced, tenured team that has been in place since 2006

The Fund’s returns will vary, and you could lose money by investing in the Fund. Investing in the bond market is subject to certain risks including market, interest-rate, issuer, credit, and inflation risk; investments may be worth more or less than the original cost when redeemed. Current conditions may result in a rise in interest rates, which in turn may result in a decline in the value of the fixed income investments held by the fund. Convertible securities may be called before intended, which may have an adverse effect on investment objectives.   The Fund’s investments in below investment grade securities may have additional credit risk. In some cases, below investment grade securities may decline in credit quality or go into default.   High-yield, lower-rated, securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not.