Global Bond Fund
The Global Bond Fund seeks high total investment return through a combination of current income and capital appreciation
Primary Benchmark:
Barclays Global Aggregate Bond Index
Portfolio Management
Ken Buntrock, CFA, CIC
David Rolley, CFA
Lynda Schweitzer, CFA
Total Fund Assets (as of 4/30/2013):
$2.6 billion
Lipper Category:
Global Income Funds
Morningstar Category:
World Bond
Strategy Highlights
- Invests primarily in investment grade fixed income securities worldwide
- Invests in a broad universe of fixed income securities
- May invest up to 20% of assets in lower-rated fixed income securities
- Potential diversification benefits of owning global fixed income securities
- Access to a larger investment universe as more than 50% of the world bond markets are outside of the US
Investment Strategy
- Active global fixed income management combining top-down macroeconomic analysis with research driven bottom up security selection
- Securities held by the fund may be denominated in any currency
- Securities held by the fund may be denominated in any countries, including emerging markets
- May invest 20% of assets in lower rated fixed income securities
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. Currency risk is the risk that fluctuations in exchange rates between the US dollar and foreign currencies may cause the value of a fund's investments to decline
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 Global Aggregate Bond Index covers the most liquid portion of the global investment grade fixed-rate bond market, including government, credit and collateralized securities. The liquidity constraint for all securities in the index is $300 million. 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 Global Aggregate Bond Index
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Year-to-Date Performance as of 6/17/2013 | | Class I | Class R |
|---|
| | -1.49% | -1.66% |
Month-End Performance as of 4/30/2013 Cumulative
Total Return | Class I | Class R | Index |
|---|
| 3 month | 0.90% | 0.79% | 0.18% | | Year-to-date | 0.33% | 0.20% | -0.74% |
Average Annualized
Total Return | Class I | Class R | Index |
|---|
| 1 Year | 4.06% | 3.80% | 1.46% | | 3 Years | 6.03% | 5.73% | 5.00% | | 5 Years | 5.55% | 5.23% | 4.34% | | 10 Years | 6.54% | 6.25% | 5.48% |
Quarter-End Performance as of 3/31/2013 Cumulative
Total Return | Class I | Class R | Index |
|---|
| 3 month | -1.20% | -1.33% | -2.10% | | Year-to-date | -1.20% | -1.33% | -2.10% |
Average Annualized
Total Return | Class I | Class R | Index |
|---|
| 1 Year | 3.53% | 3.27% | 1.25% | | 3 Years | 5.80% | 5.49% | 4.52% | | 5 Years | 5.18% | 4.86% | 3.66% | | 10 Years | 6.70% | 6.39% | 5.47% |
Gross Expense Ratio: (I) 0.72%, (R) 0.97%; Net Expense Ratio: (I) 0.72%, (R) 0.97% Waivers/reimbursements are contractual and are set to expire 1/31/14. |
Lipper Rankings as of 4/30/2013 | | Class I | Class R |
|---|
| 1 Year | 114/173 | 122/173 | | 3 Years | 50/127 | 56/127 | | 5 Years | 47/99 | 49/99 | | 10 Years | 10/68 | 18/68 | | Lipper Category: Global Income Funds |
Morningstar Rankings as of 3/31/2013 | | Class I | Class R |
|---|
| 1 Year | 189/333 | 199/333 | | 3 Years | 94/251 | 109/251 | | 5 Years | 71/201 | 81/201 | | 10 Years | 27/129 | 40/129 | | Morningstar Category: World 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 | 251 | | Average Maturity | 6.95 | | Weighted Average Duration | 5.72 | | Annual Turnover (9/30/2012) | 102% |
| Currency Distribution | |
|---|
| U S Dollars | 40.44% | | Euro | 19.63% | | Japanese Yen | 10.55% | | British Pound Sterling | 6.32% | | Mexican Peso | 3.96% | | South Korean Won | 3.00% | | Canadian Dollar | 2.95% | | Malaysian Ringgit | 2.24% | | Norwegian Krone | 2.00% | | Singapore Dollar | 1.34% | | Uruguay Peso | 1.21% | | Thailand Baht | 1.18% | | Polish Zloty | 1.15% | | Philippine Peso | 0.86% | | Swedish Krona | 0.79% | | New Turkish Lira | 0.67% | | Brazilian Real | 0.63% | | Swiss Franc | 0.57% | | Australian Dollar | 0.29% | | New Zealand Dollar | 0.18% | | South African Rand | 0.02% | | Indonesian Rupiah | 0.01% | | Iceland Krona | 0.01% |
| Duration Distribution | |
|---|
| Less than 1 Yr. | 4.13% | | 1 to 3 Yrs. | 9.73% | | 3 to 5 Yrs. | 26.08% | | 5 to 7 Yrs. | 24.34% | | 7 to 10 Yrs. | 17.73% | | 10 Yrs. or more | 8.77% | | Cash & Equiv | 9.22% |
Top Ten Holdings
as of 4/30/2013 | % Assets |
|---|
| FNMA TBA POOL 30YR 3.5 | 5.6% | | JAPAN-299 (10 YR ISSUE) | 5.1% | | U S TREASURY BILLS | 4.8% | | BUNDESREPUB. DEUTSCHLAND EUR | 4.6% | | OFFSET-US LONG BOND(CBT) JUN13 | 4.5% | | BELGIUM KINGDOM EUR | 3.2% | | BUNDES REPUBLIC EUR | 3.0% | | U S TREASURY BILLS | 2.9% | | MEXICAN BONOS M MXN | 2.7% | | FNMA TBA POOL 30YR 3 | 2.6% | | Total | 39.1% | |
| Sector Distribution | |
|---|
| Non-US Dollar (Ex CAD) | 55.63% | | Investment Grade Credit | 15.05% | | MBS | 11.17% | | US Treasury | 10.08% | | ABS | 4.87% | | Canadian Dollar | 4.33% | | CMBS | 2.81% | | High Yield Credit | 2.12% | | Convertibles | 1.00% | | Emerging Markets Debt | 0.62% | | Preferred/Equity | 0.33% | | Cash & Equivalents | -8.00% |
| Country Distribution | |
|---|
| United States | 29.26% | | Germany | 11.97% | | Japan | 11.72% | | Canada | 7.53% | | United Kingdom | 6.26% | | Mexico | 3.96% | | Belgium | 3.19% | | Italy | 2.48% | | Australia | 2.30% | | Other | 21.32% |
| Maturity Distribution | |
|---|
| Less than 1 Yr. | 2.70% | | 1 to 3 Yrs. | 10.44% | | 3 to 5 Yrs. | 25.99% | | 5 to 7 Yrs. | 17.73% | | 7 to 10 Yrs. | 20.25% | | 10 Yrs. or more | 13.67% | | Cash & Equiv | 9.22% |
| Credit Quality | |
|---|
| Govt/Agency | 10.85% | | Aaa | 24.66% | | Aa | 26.21% | | A | 17.41% | | Baa | 17.03% | | Ba | 1.48% | | B | 0.62% | | Caa & Lower | 0.10% | | Not Rated | 0.56% | | Cash & Equiv | 1.08% |
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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 | 239 | 14525 | | Average Maturity | 7.17 | 7.72 | | Weighted Average Duration | 5.8 | 6.06 | | Annual Turnover (9/30/2012) | 102% | |
| Currency Distribution | Fund | Index |
|---|
| U S Dollars | 40.10% | 41.91% | | Euro | 20.07% | 25.13% | | Japanese Yen | 11.07% | 17.96% | | British Pound Sterling | 6.07% | 5.92% | | Mexican Peso | 3.83% | 0.35% | | South Korean Won | 3.01% | 1.01% | | Canadian Dollar | 2.90% | 2.84% | | Malaysian Ringgit | 2.22% | 0.21% | | Norwegian Krone | 1.97% | 0.16% | | Singapore Dollar | 1.34% | 0.16% | | Uruguay Peso | 1.20% | 0.00% | | Thailand Baht | 1.19% | 0.28% | | Polish Zloty | 1.09% | 0.27% | | Philippine Peso | 0.88% | 0.00% | | Swedish Krona | 0.78% | 0.65% | | New Turkish Lira | 0.65% | 0.00% | | Brazilian Real | 0.62% | 0.00% | | Swiss Franc | 0.56% | 0.69% | | Australian Dollar | 0.26% | 1.44% | | New Zealand Dollar | 0.15% | 0.15% | | South African Rand | 0.02% | 0.25% | | Indonesian Rupiah | 0.01% | 0.00% | | Iceland Krona | 0.01% | 0.00% | | Danish Krone | 0.00% | 0.35% | | Israeli Shekel | 0.00% | 0.13% | | Czech Koruna | 0.00% | 0.11% | | Chilean Peso | 0.00% | 0.02% | | Hong Kong Dollar | 0.00% | 0.01% | | Hungarian Forint | 0.00% | 0.01% |
| Duration Distribution | Fund | Index |
|---|
| Less than 1 Yr. | 3.91% | 1.87% | | 1 to 3 Yrs. | 9.35% | 28.12% | | 3 to 5 Yrs. | 26.54% | 26.25% | | 5 to 7 Yrs. | 22.04% | 15.16% | | 7 to 10 Yrs. | 19.11% | 12.33% | | 10 Yrs. or more | 9.49% | 16.27% | | Cash & Equiv | 9.55% | 0.00% |
Top Ten Holdings
as of 3/31/2013 | % Assets |
|---|
| FNMA TBA POOL 30YR 3.5 | 5.6% | | BUNDESREPUB. DEUTSCHLAND EUR | 5.5% | | JAPAN-299 (10 YR ISSUE) | 5.4% | | U S TREASURY BILLS | 4.9% | | OFFSET-US LONG BOND(CBT) JUN13 | 4.5% | | BELGIUM KINGDOM EUR | 3.1% | | U S TREASURY BILLS | 3.0% | | BUNDES REPUBLIC EUR | 2.9% | | FNMA TBA POOL 30YR | 2.6% | | MEXICAN BONOS M MXN | 2.6% | | Total | 40.0% | |
| Sector Distribution | Fund | Index |
|---|
| Non-US Dollar (Ex CAD) | 55.86% | 55.24% | | Investment Grade Credit | 14.21% | 13.46% | | MBS | 10.87% | 11.55% | | US Treasury | 10.74% | 14.54% | | ABS | 4.42% | 0.10% | | Canadian Dollar | 4.28% | 2.84% | | CMBS | 2.60% | 0.55% | | High Yield Credit | 2.52% | 0.00% | | Convertibles | 0.94% | 0.00% | | Emerging Markets Debt | 0.94% | 0.00% | | Preferred/Equity | 0.33% | 0.00% | | US Agency | 0.00% | 1.71% | | Cash & Equivalents | -7.72% | 0.00% |
| Country Distribution | Fund | Index |
|---|
| United States | 28.38% | 36.42% | | Germany | 12.08% | 5.98% | | Japan | 11.83% | 18.04% | | Canada | 7.29% | 3.54% | | United Kingdom | 6.41% | 6.28% | | Mexico | 4.08% | 0.65% | | Italy | 3.29% | 4.04% | | Belgium | 3.11% | 1.06% | | Australia | 2.29% | 1.70% | | Other | 21.23% | 22.29% |
| Maturity Distribution | Fund | Index |
|---|
| Less than 1 Yr. | 2.56% | 1.19% | | 1 to 3 Yrs. | 10.08% | 24.70% | | 3 to 5 Yrs. | 26.12% | 23.22% | | 5 to 7 Yrs. | 15.83% | 14.61% | | 7 to 10 Yrs. | 21.87% | 17.22% | | 10 Yrs. or more | 13.98% | 19.05% | | Cash & Equiv | 9.55% | 0.00% |
| Credit Quality | Fund | Index |
|---|
| Govt/Agency | 11.41% | 31.84% | | Aaa | 27.92% | 20.20% | | Aa | 21.53% | 23.08% | | A | 17.01% | 10.72% | | Baa | 17.41% | 14.15% | | Ba | 2.21% | 0.02% | | B | 0.62% | 0.00% | | Caa & Lower | 0.09% | 0.00% | | Not Rated | 0.52% | 0.00% | | Cash & Equiv | 1.28% | 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.