Investment Grade Fixed Income Fund
The Investment Grade Fixed Income Fund seeks above-average total investment return through a combination of current income and capital appreciation
Primary Benchmark:
Bloomberg Barclays US Government/Credit Index
Portfolio Management
Dan Fuss, CFA, CIC
Matt Eagan, CFA
Elaine Stokes
Brian Kennedy
Total Fund Assets (as of 9/30/2018):
$272.7 million
Lipper Category:
Corporate Debt Funds BBB-Rated
Morningstar Category:
Intermediate-Term Bond
Strategy Highlights
- Value driven, opportunistic approach
- Long-term investment horizon
- Allocations to out-of-benchmark securities provide value and diversification
- Initial portfolio position in any one holding is typically 0-3%; 5% maximum position size
Investment Strategy
- Under normal circumstances, the fund invests at least 80% of its net assets (plus any borrowings made for investment purposes) in investment grade fixed income securities
- May invest up to 10% of its assets in below investment grade fixed income securities
- May invest up to 10% of its assets in equity securities (including preferred stocks and common stocks)
- May invest any portion of its assets in securities of Canadian issuers and up to 20% of its assets in securities of other foreign issuers, including emerging markets securities
About Risk
- Fixed income securities may carry one or more of the following risks: credit, interest rate (as interest rates rise bond prices usually fall), inflation and liquidity.
- Foreign and emerging market securities may be subject to greater political, economic, environmental, credit, currency and information risks. Foreign securities may be subject to higher volatility than US securities due to varying degrees of regulation and limited liquidity. These risks are magnified in emerging markets.
- Currency exchange rates between the US dollar and foreign currencies may cause the value of the fund’s investments to decline.
- Below investment grade fixed income securities may be subject to greater risks (including the risk of default) than other fixed income securities.
- Equity securities are volatile and can decline significantly in response to broad market and economic conditions.
Diversification does not ensure a profit or guarantee against a loss.
1As of the most recent prospectus, the investment advisor has contractually agreed to waive fees and/or reimburse expenses once the expense cap of the fund has been exceeded. This arrangement is set to expire on 1/31/19. When an expense cap has not been exceeded, the fund may have similar expense ratios and/or yields.
2The 30-day SEC yield is a standardized calculation, calculated by dividing the net investment income per share for the 30-day period by the maximum offering price per share at the end of the period and annualizing the result. A subsidized 30-day SEC yield reflects the effect of fee waivers and expense reimbursements. The SEC yield is not based upon distributions of the fund and actual income distributions may be higher or lower than the 30-day SEC yield amounts. Unsubsidized 30-day SEC yield is calculated using the gross expenses of the fund. Gross expenses do not include any fee waivers or reimbursement.
The Bloomberg Barclays US Government/Credit Index includes securities in the Government and Credit Indices. The Government Index includes treasuries (i.e., public obligations of the US Treasury that have remaining maturities of more than one year) and agencies (i.e., publicly issued debt of US Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the US Government). The Credit Index includes publicly issued US corporate and foreign debentures and secured notes that meet specified maturity, liquidity, and quality requirements. Indexes are unmanaged. It is not possible to invest directly in an index.
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Primary Benchmark: Bloomberg Barclays US Government/Credit Index
Year-to-Date Performance as of 10/22/2018 Month-End Performance as of 9/30/2018 Cumulative
Total Return | Class I |
|---|
| 3 month | 2.70% | | Year-to-date | 0.70% |
Average Annualized
Total Return | Class I |
|---|
| Inception Date | 7/1/1994 | | 1 Year | 1.27% | | 3 Years | 5.05% | | 5 Years | 3.29% | | 10 Years | 6.76% | | Since Inception | 8.18% |
Quarter-End Performance as of 9/30/2018 Cumulative
Total Return | Class I |
|---|
| 3 month | 2.70% | | Year-to-date | 0.70% |
Average Annualized
Total Return | Class I |
|---|
| Inception Date | 7/1/1994 | | 1 Year | 1.27% | | 3 Years | 5.05% | | 5 Years | 3.29% | | 10 Years | 6.76% | | Since Inception | 8.18% |
|
Lipper Ranking as of 9/30/2018 | | Class I |
|---|
| 1 Year | 10/269 | | 3 Years | 10/212 | | 5 Years | 87/186 | | 10 Years | 25/114 | | Lipper Category: Corporate Debt Funds BBB-Rated |
Morningstar Ranking as of 9/30/2018 | | Class I |
|---|
| 1 Year | 25/1039 | | 3 Years | 7/902 | | 5 Years | 40/796 | | 10 Years | 2/577 | | 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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Performance data shown represents past performance and is no guarantee of, and not necessarily indicative 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 2018 © 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.
© 2018 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 9/30/2018
| Characteristics | |
|---|
| Number of Issues | 200 | | Average Maturity | 4.97 | | Weighted Average Duration | 3.38 | | Annual Turnover (9/30/2017) | 3% |
| Currency Distribution | |
|---|
| US Dollar | 76.1% | | Canadian Dollar | 14.7% | | Mexican Peso | 4.7% | | British Pound Sterling | 1.6% | | Norwegian Krone | 1.0% | | Iceland Krona | 0.7% | | New Zealand Dollar | 0.5% | | Australian Dollar | 0.5% | | Brazilian Real | 0.3% | | Duration Distribution | |
|---|
| Less than 1 Yr. | 21.6% | | 1 to 3 Yrs. | 14.8% | | 3 to 5 Yrs. | 13.9% | | 5 to 7 Yrs. | 11.9% | | 7 to 10 Yrs. | 7.5% | | 10 Yrs. or more | 8.4% | | Cash & Equivalents | 21.8% |
|
| Sector Distribution | |
|---|
| Investment Grade Credit | 30.3% | | Non-US Dollar | 23.7% | | High Yield Credit | 8.5% | | Equity | 7.9% | | Securitized | 3.4% | | Convertibles | 1.9% | | US Treasury | 1.4% | | Emerging Market Credit | 1.1% | | Municipals | 0.1% | | Preferred | 0.1% | | Cash & Equivalents | 21.8% | | Country Distribution | |
|---|
| United States | 70.5% | | Canada | 13.4% | | Mexico | 4.7% | | Italy | 1.3% | | Cayman Islands | 1.2% | | United Kingdom | 1.1% | | Portugal | 1.0% | | Norway | 1.0% | | Ireland | 1.0% | | Other | 4.9% | | Maturity Distribution | |
|---|
| Less than 1 Yr. | 19.4% | | 1 to 3 Yrs. | 16.7% | | 3 to 5 Yrs. | 8.3% | | 5 to 7 Yrs. | 8.9% | | 7 to 10 Yrs. | 11.0% | | 10 Yrs. or more | 14.0% | | Cash & Equivalents | 21.8% | | Credit Quality | |
|---|
| US Treasurys | 1.4% | | AAA | 17.0% | | AA | 0.1% | | A | 22.6% | | BAA | 21.7% | | BA | 6.2% | | B | 1.2% | | CAA & Lower | 0.1% | | Not Rated | 7.9% | | Cash & Equivalents | 21.8% | |
Portfolio composition statistics are from the adviser’s internal system and may not match the fund’s regulatory documents.
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. Bond credit ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest).
Cash & Equivalents reflects unsettled trades, fees and derivatives. Negative Cash & Equivalents reflect the market value of future trade commitments for the fund. ABS/RMBS: Asset-Backed Securities/Residential Mortgage-Backed Securities. Agency MBS: Agency Mortgage-Backed Securities. CMBS: Commercial Mortgage-Backed Securities.
Due to rounding, Sector, Currency, Country, Duration, Maturity and Quality distribution totals may not equal 100%.
Both duration and maturity for equity securities are deemed to be zero.
Quarterly as of 9/30/2018
| Characteristics | Fund | Index |
|---|
| Number of Issues | 200 | 7008 | | Average Maturity | 4.97 | 8.69 | | Weighted Average Duration | 3.38 | 6.34 | | Annual Turnover (9/30/2017) | 3% | |
| Currency Distribution | Fund | Index |
|---|
| US Dollar | 76.1% | 100.0% | | Canadian Dollar | 14.7% | 0.0% | | Mexican Peso | 4.7% | 0.0% | | British Pound Sterling | 1.6% | 0.0% | | Norwegian Krone | 1.0% | 0.0% | | Iceland Krona | 0.7% | 0.0% | | New Zealand Dollar | 0.5% | 0.0% | | Australian Dollar | 0.5% | 0.0% | | Brazilian Real | 0.3% | 0.0% | | Duration Distribution | Fund | Index |
|---|
| Less than 1 Yr. | 21.6% | 1.4% | | 1 to 3 Yrs. | 14.8% | 31.2% | | 3 to 5 Yrs. | 13.9% | 22.6% | | 5 to 7 Yrs. | 11.9% | 14.1% | | 7 to 10 Yrs. | 7.5% | 10.0% | | 10 Yrs. or more | 8.4% | 20.8% | | Cash & Equivalents | 21.8% | 0.0% |
|
| Sector Distribution | Fund | Index |
|---|
| Investment Grade Credit | 30.3% | 42.5% | | Non-US Dollar | 23.7% | 0.0% | | High Yield Credit | 8.5% | 0.0% | | Equity | 7.9% | 0.0% | | Securitized | 3.4% | 0.0% | | Convertibles | 1.9% | 0.0% | | US Treasury | 1.4% | 54.6% | | Emerging Market Credit | 1.1% | 2.6% | | Municipals | 0.1% | 0.4% | | Preferred | 0.1% | 0.0% | | Cash & Equivalents | 21.8% | 0.0% | | Country Distribution | Fund | Index |
|---|
| United States | 70.5% | 87.6% | | Canada | 13.4% | 1.6% | | Mexico | 4.7% | 0.8% | | Italy | 1.3% | 0.0% | | Cayman Islands | 1.2% | 0.0% | | United Kingdom | 1.1% | 1.8% | | Portugal | 1.0% | 0.0% | | Norway | 1.0% | 0.1% | | Ireland | 1.0% | 0.1% | | Other | 4.9% | 8.0% | | Maturity Distribution | Fund | Index |
|---|
| Less than 1 Yr. | 19.4% | 0.7% | | 1 to 3 Yrs. | 16.7% | 29.9% | | 3 to 5 Yrs. | 8.3% | 21.2% | | 5 to 7 Yrs. | 8.9% | 13.3% | | 7 to 10 Yrs. | 11.0% | 12.3% | | 10 Yrs. or more | 14.0% | 22.6% | | Cash & Equivalents | 21.8% | 0.0% | | Credit Quality | Fund | Index |
|---|
| US Treasurys | 1.4% | 54.6% | | AAA | 17.0% | 6.2% | | AA | 0.1% | 7.5% | | A | 22.6% | 17.6% | | BAA | 21.7% | 14.2% | | BA | 6.2% | 0.0% | | B | 1.2% | 0.0% | | CAA & Lower | 0.1% | 0.0% | | Not Rated | 7.9% | 0.0% | | Cash & Equivalents | 21.8% | 0.0% |
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Portfolio composition statistics are from the adviser’s internal system and may not match the fund’s regulatory documents.
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. Bond credit ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest).
Cash & Equivalents reflects unsettled trades, fees and derivatives. Negative Cash & Equivalents reflect the market value of future trade commitments for the fund. ABS/RMBS: Asset-Backed Securities/Residential Mortgage-Backed Securities. Agency MBS: Agency Mortgage-Backed Securities. CMBS: Commercial Mortgage-Backed Securities.
Due to rounding, Sector, Currency, Country, Duration, Maturity and Quality distribution totals may not equal 100%.
Both duration and maturity for equity securities are deemed to be zero.