Core Plus Bond Fund
Y shares are only available to certain institutional investors. Please click here for other share classes.
The Core Plus Bond Fund seeks high total investment return through a combination of current income and capital appreciation
Primary Benchmark:
Barclays US Aggregate Bond Index
Portfolio Management
Peter Palfrey, CFA
Rick Raczkowski
Total Fund Assets (as of 4/30/2013):
$1.8 billion
Lipper Category:
Intermediate Investment Grade Debt Funds
Morningstar Category:
Intermediate-Term Bond
Strategy Highlights
- The fund invests primarily in quality corporate and US government bonds, generally maintaining an average effective maturity of ten years or less
- Portfolios are structured with benchmark-aware risk and return objectives
- Tactical investments in non-benchmark sectors are a key source of potential return
- Portfolio construction is driven by bottom-up security selection and top-down macroeconomic analysis
Investment Strategy
- May invest up to 80% of its net assets in bonds including debt securities of any maturity
- May invest 0-20% in below investment-grade securities
- Any allocation to non-investment grade emerging market debt is captured within the above guidelines, and is typically limited to 10%
- May invest 0-10% in non-US dollar denominated securities
- May shift assets among various types of securities based upon changing market conditions
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
- 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-sponsored 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. Accordingly, the purchase of fund shares should be viewed as a long-term investment
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 5/24/2013 Month-End Performance as of 4/30/2013 Cumulative
Total Return | Class Y | Index |
|---|
| 3 month | 2.53% | 1.60% | | Year-to-date | 2.38% | 0.89% |
Average Annualized
Total Return | Class Y | Index |
|---|
| 1 Year | 9.92% | 3.68% | | 3 Years | 9.21% | 5.51% | | 5 Years | 9.49% | 5.72% | | 10 Years | 7.31% | 5.04% |
Quarter-End Performance as of 3/31/2013 Cumulative
Total Return | Class Y | Index |
|---|
| 3 month | 0.49% | -0.12% | | Year-to-date | 0.49% | -0.12% |
Average Annualized
Total Return | Class Y | Index |
|---|
| 1 Year | 9.39% | 3.77% | | 3 Years | 9.19% | 5.52% | | 5 Years | 9.25% | 5.47% | | 10 Years | 7.26% | 5.02% |
Gross Expense Ratio: (Y) 0.58%; Net Expense Ratio: (Y) 0.58% Waivers/reimbursements are contractual and are set to expire 1/31/14. |
Lipper Rankings as of 4/30/2013 | | Class Y |
|---|
| 1 Year | 17/606 | | 3 Years | 7/540 | | 5 Years | 8/463 | | 10 Years | 7/319 | | Lipper Category: Intermediate Investment Grade Debt Funds |
Morningstar Rankings as of 3/31/2013 | | Class Y |
|---|
| 1 Year | 84/1157 | | 3 Years | 29/1004 | | 5 Years | 24/877 | | 10 Years | 15/605 | | Morningstar Category: Intermediate-Term 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 (12/30/94) performance is that of Class A shares and reflects the higher net expenses of that share class. Since inception performance is calculated from 11/7/73.
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 | 418 | | Average Maturity | 8.92 | | Weighted Average Duration | 6.41 | | Annual Turnover (9/30/2012) | 78% |
| Currency Distribution | |
|---|
| U S Dollars | 93.86% | | Mexican Peso | 3.18% | | Euro | 2.60% | | Philippine Peso | 0.36% |
| Duration Distribution | |
|---|
| Less than 1 Yr. | 5.76% | | 1 to 3 Yrs. | 11.05% | | 3 to 5 Yrs. | 29.89% | | 5 to 7 Yrs. | 22.76% | | 7 to 10 Yrs. | 13.54% | | 10 Yrs. or more | 16.49% | | Cash & Equiv | 0.51% |
Top Ten Holdings
as of 4/30/2013 | % Assets |
|---|
| FNMA TBA POOL 30YR 3.5 | 1.8% | | FEDERAL NATL MTG ASSN | 1.6% | | KINGDOM OF SPAIN 144A W/O RTS | 1.5% | | FHLMC GOLD POOL C09004 | 1.5% | | U S TREASURY BOND | 1.4% | | MEXICAN BONOS M MXN | 1.4% | | U S TREASURY BOND | 1.3% | | BONOS Y OBLIG DEL ESTADO EUR | 1.2% | | SLM CORP | 1.1% | | U S TREASURY NOTES | 1.1% | | Total | 13.9% | |
| Sector Distribution | |
|---|
| Investment Grade Credit | 39.71% | | High Yield Credit | 17.31% | | MBS | 11.77% | | US Treasury | 7.49% | | Non-US Dollar (Ex CAD) | 6.12% | | CMBS | 4.82% | | ABS | 3.95% | | Bank Loans | 3.89% | | US Agency | 2.40% | | Emerging Markets Debt | 1.80% | | Preferred/Equity | 0.15% | | Convertibles | 0.09% | | Cash & Equivalents | 0.51% |
| Country Distribution | |
|---|
| United States | 70.34% | | Mexico | 4.68% | | Spain | 3.53% | | Cayman Islands | 3.26% | | Korea, Republic Of | 3.14% | | Brazil | 1.95% | | Peru | 1.40% | | Chile | 1.03% | | Italy | 1.01% | | Other | 9.65% |
| Maturity Distribution | |
|---|
| Less than 1 Yr. | 1.87% | | 1 to 3 Yrs. | 8.45% | | 3 to 5 Yrs. | 31.12% | | 5 to 7 Yrs. | 17.16% | | 7 to 10 Yrs. | 21.52% | | 10 Yrs. or more | 19.38% | | Cash & Equiv | 0.51% |
| Credit Quality | |
|---|
| Govt/Agency | 21.22% | | Aaa | 6.33% | | Aa | 3.72% | | A | 15.87% | | Baa | 31.98% | | Ba | 15.25% | | B | 4.91% | | Caa & Lower | 0.11% | | Not Rated | 0.10% | | Cash & Equiv | 0.51% |
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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 | 408 | 8223 | | Average Maturity | 8.9 | 7.07 | | Weighted Average Duration | 6.43 | 5.19 | | Annual Turnover (9/30/2012) | 78% | |
| Currency Distribution | Fund | Index |
|---|
| U S Dollars | 93.93% | 100.00% | | Mexican Peso | 3.23% | 0.00% | | Euro | 2.46% | 0.00% | | Philippine Peso | 0.38% | 0.00% |
| Duration Distribution | Fund | Index |
|---|
| Less than 1 Yr. | 5.27% | 2.14% | | 1 to 3 Yrs. | 11.57% | 30.57% | | 3 to 5 Yrs. | 30.08% | 33.58% | | 5 to 7 Yrs. | 22.81% | 15.13% | | 7 to 10 Yrs. | 14.05% | 7.22% | | 10 Yrs. or more | 15.91% | 11.36% | | Cash & Equiv | 0.30% | 0.00% |
Top Ten Holdings
as of 3/31/2013 | % Assets |
|---|
| FNMA TBA POOL 30YR 3.5 | 1.8% | | FEDERAL NATL MTG ASSN | 1.6% | | U S TREASURY BOND | 1.6% | | FHLMC GOLD POOL C09004 | 1.5% | | KINGDOM OF SPAIN 144A W/O RTS | 1.5% | | U S TREASURY BOND | 1.4% | | MEXICAN BONOS M MXN | 1.4% | | SLM CORP | 1.2% | | U S TREASURY NOTES | 1.2% | | BONOS Y OBLIG DEL ESTADO EUR | 1.1% | | Total | 14.3% | |
| Sector Distribution | Fund | Index |
|---|
| Investment Grade Credit | 39.28% | 27.22% | | High Yield Credit | 18.60% | 0.00% | | MBS | 11.75% | 29.19% | | US Treasury | 7.82% | 36.64% | | Non-US Dollar (Ex CAD) | 6.07% | 0.00% | | CMBS | 5.01% | 1.83% | | ABS | 3.88% | 0.36% | | Bank Loans | 2.82% | 0.00% | | US Agency | 2.45% | 4.76% | | Emerging Markets Debt | 1.77% | 0.00% | | Preferred/Equity | 0.16% | 0.00% | | Convertibles | 0.08% | 0.00% | | Cash & Equivalents | 0.30% | 0.00% |
| Country Distribution | Fund | Index |
|---|
| United States | 71.10% | 91.76% | | Mexico | 4.92% | 0.54% | | Spain | 3.49% | 0.10% | | Cayman Islands | 3.33% | 0.00% | | Korea, Republic Of | 3.28% | 0.17% | | Brazil | 2.01% | 0.53% | | Canada | 1.02% | 1.41% | | Italy | 0.96% | 0.21% | | United Arab Emirates | 0.84% | 0.00% | | Other | 9.05% | 5.28% |
| Maturity Distribution | Fund | Index |
|---|
| Less than 1 Yr. | 2.47% | 0.52% | | 1 to 3 Yrs. | 8.34% | 24.47% | | 3 to 5 Yrs. | 28.39% | 26.87% | | 5 to 7 Yrs. | 19.70% | 18.48% | | 7 to 10 Yrs. | 22.39% | 17.23% | | 10 Yrs. or more | 18.41% | 12.43% | | Cash & Equiv | 0.30% | 0.00% |
| Credit Quality | Fund | Index |
|---|
| Govt/Agency | 21.96% | 42.45% | | Aaa | 6.32% | 32.32% | | Aa | 3.49% | 3.31% | | A | 16.22% | 11.37% | | Baa | 31.03% | 10.55% | | Ba | 15.38% | 0.01% | | B | 5.08% | 0.00% | | Caa & Lower | 0.11% | 0.00% | | Not Rated | 0.11% | 0.00% | | Cash & Equiv | 0.30% | 0.00% |
|
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.