Bond Fund

Investment Objective

Current income and capital appreciation

Morningstar Category
Intermediate Core 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 5% in non-investment grade holdings.

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

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

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.