Investment Objective

Current Income and Capital Appreciation

Fund Characteristics

The Bond Fund seeks to outperform the 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 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 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

As interest rates rise, bond prices will fall and bond funds become more volatile.

The Fund’s investments in mortgage-backed securities are subject to prepayment risk. Prepayment of high interest rate mortgage-backed securities during times of declining interest rates will tend to lower the return of the Fund and may even result in losses if the prepaid securities were acquired at a premium.