Strategic Income Fund
Y shares are only available to certain institutional investors. Please click here for other share classes.
The Strategic Income Fund seeks high current income with a secondary objective of capital growth
Primary Benchmark:
Barclays US Aggregate Bond Index
Portfolio Management
Dan Fuss, CFA, CIC
Matt Eagan, CFA
Elaine Stokes
Total Fund Assets (as of 4/30/2013):
$15.4 billion
Lipper Category:
Multi-Sector Income Funds
Morningstar Category:
Multisector Bond
Strategy Highlights
- Value driven, opportunistic approach
- Long term investment horizon
- Allocations to out of benchmark securities provide value and diversification
Investment Strategy
- Under normal market conditions, the Fund will invest substantially all of its assets in income producing securities (including below investment-grade securities)
- The Fund focuses on US corporate bonds, convertible securities, foreign debt instruments, including those in emerging markets and related foreign currency transactions, and US government securities
- May invest up to 35% of its assets in preferred stocks and dividend-paying common stocks
- Initial portfolio position in any one holding is typically under 3%; 5% maximum positions size
About Risk
- Mutual funds that invest in bonds can lose their value. When interest rates rise, bond prices usually fall and vice versa. Credit risk (the risk that the issuer or borrower will fail to make timely payments of interest and/or principal) is heightened for lower rated or higher yielding fixed-income securities and lower rated borrowers. In addition, lower-rated debt securities may be subject to greater price volatility
- Below investment-grade (also known as high yield) securities are subject to a high degree of market and credit risk. In addition, the secondary market for these securities may lack liquidity, which in turn may adversely affect the value of these securities and that of the Fund.
- Foreign investments involve special risks including greater economic, political and currency fluctuation risks, which may be even greater in emerging markets
- Securities issued by US Government agencies are not insured, and may not be guaranteed by the US Government
- The Fund is subject to currency risk, the risk of fluctuations in exchange rates between the US dollar and foreign currencies, which may cause the value of a Fund’s investments to decline. Funds that invest in securities denominated in, or receive revenues in, foreign currency are subject to currency risk
Past performance is no guarantee of future results.1 For further detail regarding Minimum Initial Investment, please see the fund prospectus.
2 Unlike net expense ratio, gross expense ratio does not reflect any potential reimbursement/waiver of expenses, if any, as stated in the most recent Fund prospectus. Fund expenses and expense reductions are subject to change. Expense reductions are contractual and are set to expire 1/31/2014. Investors should consult the most recent prospectus for more detailed information.
3Unsubsidized 30-day SEC yield is calculated using the gross expenses of the fund. Gross expenses do not include any fee waivers or reimbursement.
The
Barclays US Aggregate Bond Index is an unmanaged index of investment grade bonds with one- to ten-year maturities issued by the US government, its agencies and US corporations. Indexes are unmanaged and do not incur fees. It is not possible to invest directly in an index.
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Primary Benchmark: Barclays US Aggregate Bond Index
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Year-to-Date Performance as of 6/14/2013 Month-End Performance as of 4/30/2013 Cumulative
Total Return | Class Y | Index |
|---|
| 3 month | 4.52% | 1.60% | | Year-to-date | 6.75% | 0.89% |
Average Annualized
Total Return | Class Y | Index |
|---|
| 1 Year | 13.46% | 3.68% | | 3 Years | 10.20% | 5.51% | | 5 Years | 8.85% | 5.72% | | 10 Years | 10.13% | 5.04% |
Quarter-End Performance as of 3/31/2013 Cumulative
Total Return | Class Y | Index |
|---|
| 3 month | 3.31% | -0.12% | | Year-to-date | 3.31% | -0.12% |
Average Annualized
Total Return | Class Y | Index |
|---|
| 1 Year | 10.11% | 3.77% | | 3 Years | 9.71% | 5.52% | | 5 Years | 8.76% | 5.47% | | 10 Years | 10.39% | 5.02% |
Gross Expense Ratio: (Y) 0.71%; Net Expense Ratio: (Y) 0.71% Waivers/reimbursements are contractual and are set to expire 1/31/14. |
Lipper Rankings as of 4/30/2013 | | Class Y |
|---|
| 1 Year | 13/237 | | 3 Years | 9/169 | | 5 Years | 21/148 | | 10 Years | 1/91 | | Lipper Category: Multi-Sector Income Funds |
Morningstar Rankings as of 3/31/2013 | | Class Y |
|---|
| 1 Year | 77/292 | | 3 Years | 33/222 | | 5 Years | 43/183 | | 10 Years | 1/105 | | Morningstar Category: Multisector Bond |
Lipper and Morningstar rankings are based on total returns calculated by each ranking entity. Rankings do not take into account sales charges, if applicable, but include reinvestment of dividends and capital gains, if any.
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Prior to the inception of Class Y shares (12/01/99) performance is that of Class A shares and reflects the higher net expenses of that share class. Since inception performance is calculated from 5/1/95.
Total return assumes reinvestment of dividends and capital gains distributions, if any.
Performance data quoted represents past performance and is no guarantee of future results. Total return and value will vary and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. Returns include changes in share price and reinvestment of dividends and capital gains, if any.
Lipper Analytical Services Inc., a Thomson Reuters Company, is a nationally recognized organization that provides performance information for mutual funds. Copyright 2013 © Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
© 2013 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Monthly as of 4/30/2013
| Characteristics | |
|---|
| Number of Issues | 570 | | Average Maturity | 6.59 | | Weighted Average Duration | 4.29 | | Annual Turnover (9/30/2012) | 30% |
| Currency Distribution | |
|---|
| U S Dollars | 70.68% | | Canadian Dollar | 6.97% | | Euro | 5.36% | | New Zealand Dollar | 4.74% | | Australian Dollar | 3.12% | | Norwegian Krone | 2.69% | | Brazilian Real | 2.05% | | Mexican Peso | 1.35% | | Indonesian Rupiah | 1.16% | | South Korean Won | 0.61% | | Iceland Krona | 0.42% | | Singapore Dollar | 0.39% | | Swiss Franc | 0.33% | | British Pound Sterling | 0.12% |
| Duration Distribution | |
|---|
| Less than 1 Yr. | 26.70% | | 1 to 3 Yrs. | 17.86% | | 3 to 5 Yrs. | 22.23% | | 5 to 7 Yrs. | 9.37% | | 7 to 10 Yrs. | 11.62% | | 10 Yrs. or more | 12.02% | | Cash & Equiv | 0.20% |
Top Ten Holdings
as of 4/30/2013 | % Assets |
|---|
| CORNING INC | 3.0% | | U S TREASURY NOTES | 2.6% | | INTEL CORP | 2.3% | | BRISTOL MYERS SQUIBB | 2.2% | | PPG INDS | 1.9% | | TELEFONICA DE ESPANA ADR | 1.8% | | CANADIAN GOVERNMENT CAD | 1.8% | | SPRINGLEAF FINANCE CORP | 1.7% | | INTEL CORP CVT | 1.7% | | NORWEGIAN GOVT NOK | 1.6% | | Total | 20.7% | |
| Sector Distribution | |
|---|
| Non-US Dollar (Ex CAD) | 22.34% | | High Yield Credit | 22.09% | | Preferred/Equity | 19.99% | | Investment Grade Credit | 12.12% | | Convertibles | 10.07% | | Canadian Dollar | 6.97% | | US Treasury | 2.57% | | Bank Loans | 2.25% | | MUNI | 0.79% | | Emerging Markets Debt | 0.33% | | CMBS | 0.24% | | ABS | 0.03% | | MBS | 0.03% | | Cash & Equivalents | 0.20% |
| Country Distribution | |
|---|
| United States | 67.41% | | Canada | 8.50% | | Spain | 3.42% | | Norway | 2.83% | | Ireland | 2.63% | | United Kingdom | 2.59% | | Australia | 1.78% | | Supranational | 1.70% | | Netherlands | 1.54% | | Other | 7.60% |
| Maturity Distribution | |
|---|
| Less than 1 Yr. | 23.93% | | 1 to 3 Yrs. | 17.21% | | 3 to 5 Yrs. | 18.59% | | 5 to 7 Yrs. | 10.66% | | 7 to 10 Yrs. | 6.57% | | 10 Yrs. or more | 22.84% | | Cash & Equiv | 0.20% |
| Credit Quality | |
|---|
| Govt/Agency | 2.57% | | Aaa | 12.12% | | Aa | 4.26% | | A | 8.22% | | Baa | 21.53% | | Ba | 12.37% | | B | 11.60% | | Caa & Lower | 6.21% | | Not Rated | 20.93% | | Cash & Equiv | 0.19% |
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Credit Quality reflects the highest credit rating assigned to individual holdings of the fund among Moody's, S&P or Fitch ratings are subject to change. The Fund's shares are not rated by any rating agency and no credit rating for Fund shares is implied.
Cash & Equivalents reflects unsettled trades, fees and derivatives. Negative Cash & Equivalents reflect the market value of future trade commitments for the fund. In the Sector, Duration and Maturity distributions, the calculations are based on the specific traits of each security related to that distribution, which can result in variations of the Cash & Equivalents weightings.
Due to rounding, quality, maturity, sector, currency, country and duration totals may not equal 100.00%.
Both duration and maturity for equity securities are deemed to be zero.
Quarterly as of 3/31/2013
| Characteristics | Fund | Index |
|---|
| Number of Issues | 567 | 8223 | | Average Maturity | 6.6 | 7.07 | | Weighted Average Duration | 4.25 | 5.19 | | Annual Turnover (9/30/2012) | 30% | |
| Currency Distribution | Fund | Index |
|---|
| U S Dollars | 70.63% | 100.00% | | Canadian Dollar | 7.06% | 0.00% | | Euro | 5.23% | 0.00% | | New Zealand Dollar | 4.48% | 0.00% | | Australian Dollar | 3.19% | 0.00% | | Norwegian Krone | 2.73% | 0.00% | | Brazilian Real | 1.96% | 0.00% | | Indonesian Rupiah | 1.54% | 0.00% | | Mexican Peso | 1.32% | 0.00% | | South Korean Won | 0.61% | 0.00% | | Singapore Dollar | 0.40% | 0.00% | | Iceland Krona | 0.40% | 0.00% | | Swiss Franc | 0.33% | 0.00% | | British Pound Sterling | 0.12% | 0.00% |
| Duration Distribution | Fund | Index |
|---|
| Less than 1 Yr. | 28.12% | 2.14% | | 1 to 3 Yrs. | 17.26% | 30.57% | | 3 to 5 Yrs. | 20.67% | 33.58% | | 5 to 7 Yrs. | 10.60% | 15.13% | | 7 to 10 Yrs. | 11.44% | 7.22% | | 10 Yrs. or more | 11.68% | 11.36% | | Cash & Equiv | 0.22% | 0.00% |
Top Ten Holdings
as of 3/31/2013 | % Assets |
|---|
| CORNING INC | 2.8% | | U S TREASURY NOTES | 2.8% | | BRISTOL MYERS SQUIBB | 2.3% | | INTEL CORP | 2.1% | | CANADIAN GOVERNMENT CAD | 1.8% | | PPG INDS | 1.8% | | TELEFONICA DE ESPANA ADR | 1.8% | | SPRINGLEAF FINANCE CORP | 1.7% | | INTEL CORP CVT | 1.7% | | GENERAL ELEC CAP CORP NZD | 1.5% | | Total | 20.3% | |
| Sector Distribution | Fund | Index |
|---|
| High Yield Credit | 22.27% | 0.00% | | Non-US Dollar (Ex CAD) | 22.21% | 0.00% | | Preferred/Equity | 19.40% | 0.00% | | Investment Grade Credit | 12.30% | 27.22% | | Convertibles | 10.03% | 0.00% | | Canadian Dollar | 7.06% | 0.00% | | US Treasury | 2.81% | 36.64% | | Bank Loans | 2.27% | 0.00% | | MUNI | 0.78% | 0.00% | | Emerging Markets Debt | 0.35% | 0.00% | | CMBS | 0.24% | 1.83% | | MBS | 0.03% | 29.19% | | ABS | 0.03% | 0.36% | | US Agency | 0.00% | 4.76% | | Cash & Equivalents | 0.22% | 0.00% |
| Country Distribution | Fund | Index |
|---|
| United States | 67.30% | 91.76% | | Canada | 8.68% | 1.41% | | Spain | 3.16% | 0.10% | | Norway | 2.86% | 0.07% | | United Kingdom | 2.53% | 0.82% | | Ireland | 2.52% | 0.00% | | Supranational | 2.09% | 1.48% | | Australia | 1.80% | 0.35% | | Netherlands | 1.53% | 0.28% | | Other | 7.54% | 3.73% |
| Maturity Distribution | Fund | Index |
|---|
| Less than 1 Yr. | 24.46% | 0.52% | | 1 to 3 Yrs. | 17.84% | 24.47% | | 3 to 5 Yrs. | 17.09% | 26.87% | | 5 to 7 Yrs. | 9.89% | 18.48% | | 7 to 10 Yrs. | 7.94% | 17.23% | | 10 Yrs. or more | 22.56% | 12.43% | | Cash & Equiv | 0.22% | 0.00% |
| Credit Quality | Fund | Index |
|---|
| Govt/Agency | 2.81% | 42.45% | | Aaa | 12.62% | 32.32% | | Aa | 4.27% | 3.31% | | A | 7.92% | 11.37% | | Baa | 21.51% | 10.55% | | Ba | 12.41% | 0.01% | | B | 11.06% | 0.00% | | Caa & Lower | 6.86% | 0.00% | | Not Rated | 20.38% | 0.00% | | Cash & Equiv | 0.17% | 0.00% |
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Credit Quality reflects the highest credit rating assigned to individual holdings of the fund among Moody's, S&P or Fitch ratings are subject to change. The Fund's shares are not rated by any rating agency and no credit rating for Fund shares is implied.
Cash & Equivalents reflects unsettled trades, fees and derivatives. Negative Cash & Equivalents reflect the market value of future trade commitments for the fund. In the Sector, Duration and Maturity distributions, the calculations are based on the specific traits of each security related to that distribution, which can result in variations of the Cash & Equivalents weightings.
Due to rounding, quality, maturity, sector, currency, country and duration totals may not equal 100.00%.
Both duration and maturity for equity securities are deemed to be zero.