Fixed Income Fund
The Fixed Income Fund seeks high total investment return through a combination of current income and capital appreciation
Primary Benchmark:
Barclays US Government/Credit Index
Portfolio Management
Dan Fuss, CFA, CIC
Matt Eagan, CFA
Elaine Stokes
Total Fund Assets (as of 4/30/2013):
$1.2 billion
Lipper Category:
Corporate Debt Funds BBB-Rated
Morningstar Category:
Multisector Bond
Strategy Highlights
- Value driven, opportunistic approach
- Long term investment horizon
- Allocations to out-of-benchmark securities can provide value and diversification
Investment Strategy
- Under normal circumstances, the Fund will invest at least 80% of its net assets (plus any borrowings made for investment purposes) in fixed-income securities
- May invest up to 35% of assets in below investment-grade fixed-income securities
- May invest up to 20% of its assets in equity securities such as common stocks and preferred stocks (with up to 10% of its assets in common stocks)
- May invest any portion of its assets in securities of Canadian issuers and up to 20% of its assets in other foreign securities, including emerging markets securities
- Initial portfolio position in any one holding is typically 0-3%; 5% maximum position 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 Government/Credit Bond Index includes Treasurys (public obligations of the US Treasury that have remaining maturities of more than one year) and agencies (publicly issued debt of US government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the US government) as well as other publicly issued investment grade corporate and foreign debentures that meet specified maturity, liquidity, and quality requirements. 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 Government/Credit Index
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Year-to-Date Performance as of 5/24/2013 Month-End Performance as of 4/30/2013 Cumulative
Total Return | Class I | Index |
|---|
| 3 month | 3.62% | 1.88% | | Year-to-date | 5.27% | 1.06% |
Average Annualized
Total Return | Class I | Index |
|---|
| 1 Year | 13.24% | 4.43% | | 3 Years | 10.46% | 6.10% | | 5 Years | 9.50% | 5.88% | | 10 Years | 10.08% | 5.07% |
Quarter-End Performance as of 3/31/2013 Cumulative
Total Return | Class I | Index |
|---|
| 3 month | 2.43% | -0.16% | | Year-to-date | 2.43% | -0.16% |
Average Annualized
Total Return | Class I | Index |
|---|
| 1 Year | 11.04% | 4.56% | | 3 Years | 10.08% | 6.10% | | 5 Years | 9.41% | 5.50% | | 10 Years | 10.35% | 5.06% |
Gross Expense Ratio: (I) 0.57%; Net Expense Ratio: (I) 0.57% Waivers/reimbursements are contractual and are set to expire 1/31/14. |
Lipper Rankings as of 4/30/2013 | | Class I |
|---|
| 1 Year | 9/176 | | 3 Years | 18/150 | | 5 Years | 19/127 | | 10 Years | 2/82 | | Lipper Category: Corporate Debt Funds BBB-Rated |
Morningstar Rankings as of 3/31/2013 | | Class I |
|---|
| 1 Year | 38/292 | | 3 Years | 21/222 | | 5 Years | 21/183 | | 10 Years | 2/105 | | 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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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 | 472 | | Average Maturity | 8.32 | | Weighted Average Duration | 5.27 | | Annual Turnover (9/30/2012) | 17% |
| Currency Distribution | |
|---|
| U S Dollars | 69.92% | | Canadian Dollar | 10.96% | | Euro | 4.38% | | New Zealand Dollar | 4.33% | | Australian Dollar | 2.58% | | Brazilian Real | 1.63% | | Norwegian Krone | 1.51% | | British Pound Sterling | 1.30% | | Singapore Dollar | 1.15% | | Indonesian Rupiah | 1.07% | | Mexican Peso | 0.65% | | Iceland Krona | 0.34% | | South Korean Won | 0.19% |
| Duration Distribution | |
|---|
| Less than 1 Yr. | 12.78% | | 1 to 3 Yrs. | 17.72% | | 3 to 5 Yrs. | 26.33% | | 5 to 7 Yrs. | 13.15% | | 7 to 10 Yrs. | 12.83% | | 10 Yrs. or more | 15.89% | | Cash & Equiv | 1.29% |
Top Ten Holdings
as of 4/30/2013 | % Assets |
|---|
| U S TREASURY NOTES | 2.9% | | CANADIAN GOVERNMENT CAD | 2.6% | | ONTARIO (PROVINCE OF) | 1.8% | | OLD REPUBLIC INTL CORP CVT | 1.7% | | INTEL CORP | 1.6% | | INTERAMERICAN DEV BK NZD | 1.6% | | CANADIAN GOVERNMENT CAD | 1.4% | | AMERICAN INTL GROUP FRN | 1.2% | | CANADIAN GOVERNMENT CAD | 1.2% | | INTL BK RECON & DEVELOP SGD | 1.1% | | Total | 17.1% | |
| Sector Distribution | |
|---|
| Investment Grade Credit | 25.41% | | High Yield Credit | 22.31% | | Non-US Dollar (Ex CAD) | 19.12% | | Canadian Dollar | 10.96% | | Convertibles | 9.80% | | Preferred/Equity | 6.59% | | US Treasury | 2.90% | | MUNI | 1.03% | | Bank Loans | 0.32% | | CMBS | 0.15% | | MBS | 0.07% | | ABS | 0.05% | | Emerging Markets Debt | 0.01% | | Cash & Equivalents | 1.29% |
| Country Distribution | |
|---|
| United States | 64.67% | | Canada | 12.39% | | Supranational | 3.02% | | Netherlands | 2.46% | | United Kingdom | 2.35% | | France | 2.15% | | Ireland | 1.73% | | Spain | 1.68% | | Australia | 1.56% | | Other | 8.00% |
| Maturity Distribution | |
|---|
| Less than 1 Yr. | 12.23% | | 1 to 3 Yrs. | 16.10% | | 3 to 5 Yrs. | 19.24% | | 5 to 7 Yrs. | 13.54% | | 7 to 10 Yrs. | 9.83% | | 10 Yrs. or more | 27.76% | | Cash & Equiv | 1.29% |
| Credit Quality | |
|---|
| Govt/Agency | 2.90% | | Aaa | 14.70% | | Aa | 4.23% | | A | 10.95% | | Baa | 33.28% | | Ba | 12.50% | | B | 8.34% | | Caa & Lower | 4.05% | | Not Rated | 7.78% | | Cash & Equiv | 1.29% |
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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 | 467 | 6286 | | Average Maturity | 8.01 | 7.72 | | Weighted Average Duration | 5.04 | 5.79 | | Annual Turnover (9/30/2012) | 17% | |
| Currency Distribution | Fund | Index |
|---|
| U S Dollars | 70.96% | 100.00% | | Canadian Dollar | 10.83% | 0.00% | | Euro | 4.15% | 0.00% | | New Zealand Dollar | 3.96% | 0.00% | | Australian Dollar | 2.57% | 0.00% | | Norwegian Krone | 1.48% | 0.00% | | Brazilian Real | 1.45% | 0.00% | | British Pound Sterling | 1.24% | 0.00% | | Singapore Dollar | 1.14% | 0.00% | | Indonesian Rupiah | 1.08% | 0.00% | | Mexican Peso | 0.62% | 0.00% | | Iceland Krona | 0.32% | 0.00% | | South Korean Won | 0.19% | 0.00% |
| Duration Distribution | Fund | Index |
|---|
| Less than 1 Yr. | 12.55% | 2.14% | | 1 to 3 Yrs. | 16.92% | 33.21% | | 3 to 5 Yrs. | 24.16% | 25.06% | | 5 to 7 Yrs. | 13.84% | 12.86% | | 7 to 10 Yrs. | 12.26% | 10.18% | | 10 Yrs. or more | 14.97% | 16.54% | | Cash & Equiv | 5.30% | 0.00% |
Top Ten Holdings
as of 3/31/2013 | % Assets |
|---|
| U S TREASURY NOTES | 2.9% | | CANADIAN GOVERNMENT CAD | 2.5% | | ONTARIO (PROVINCE OF) | 1.8% | | OLD REPUBLIC INTL CORP CVT | 1.7% | | INTERAMERICAN DEV BK NZD | 1.5% | | INTEL CORP | 1.5% | | CANADIAN GOVERNMENT CAD | 1.4% | | AMERICAN INTL GROUP FRN | 1.2% | | CANADIAN GOVERNMENT CAD | 1.1% | | INTL BK RECON & DEVELOP SGD | 1.1% | | Total | 16.8% | |
| Sector Distribution | Fund | Index |
|---|
| Investment Grade Credit | 24.33% | 39.67% | | High Yield Credit | 21.78% | 0.00% | | Non-US Dollar (Ex CAD) | 18.16% | 0.00% | | Canadian Dollar | 10.83% | 0.00% | | Convertibles | 9.48% | 0.00% | | Preferred/Equity | 6.13% | 0.00% | | US Treasury | 2.91% | 53.40% | | MUNI | 0.67% | 0.00% | | CMBS | 0.15% | 0.00% | | Bank Loans | 0.13% | 0.00% | | MBS | 0.07% | 0.00% | | ABS | 0.05% | 0.00% | | Emerging Markets Debt | 0.01% | 0.00% | | US Agency | 0.00% | 6.93% | | Cash & Equivalents | 5.30% | 0.00% |
| Country Distribution | Fund | Index |
|---|
| United States | 65.73% | 88.03% | | Canada | 12.25% | 2.02% | | Supranational | 2.96% | 2.16% | | Netherlands | 2.39% | 0.40% | | France | 2.17% | 0.40% | | United Kingdom | 2.10% | 1.19% | | Ireland | 1.63% | 0.00% | | Australia | 1.56% | 0.51% | | Spain | 1.50% | 0.15% | | Other | 7.72% | 5.14% |
| Maturity Distribution | Fund | Index |
|---|
| Less than 1 Yr. | 11.86% | 0.73% | | 1 to 3 Yrs. | 16.53% | 32.03% | | 3 to 5 Yrs. | 17.37% | 23.85% | | 5 to 7 Yrs. | 12.20% | 12.22% | | 7 to 10 Yrs. | 10.21% | 13.17% | | 10 Yrs. or more | 26.53% | 17.99% | | Cash & Equiv | 5.30% | 0.00% |
| Credit Quality | Fund | Index |
|---|
| Govt/Agency | 2.91% | 61.86% | | Aaa | 14.52% | 2.35% | | Aa | 4.16% | 4.48% | | A | 9.41% | 16.23% | | Baa | 32.48% | 15.08% | | Ba | 11.67% | 0.00% | | B | 8.24% | 0.00% | | Caa & Lower | 4.02% | 0.00% | | Not Rated | 7.31% | 0.00% | | Cash & Equiv | 5.27% | 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.