Diversified Income Fund Fact Sheet
Philosophy and Process
- The fund seeks income and capital appreciation by investing in a broad range of income-generating asset classes and strategies.
- The strategy is based on the insight that a diversified, opportunistic approach across multiple income-generating asset classes and strategies have the potential to simultaneously accomplish the objectives of providing a stable income stream for investors and generating competitive long-term total returns (absolute and risk-adjusted) versus strategies that rely more heavily on capital appreciation.
- Expanding the opportunity set to include non-traditional investments such as insurance-linked securities and option strategies has the potential to enhance income and also lead to additional sources of alpha.
- The portfolio management team will make allocation decisions according to their outlook for the economy, financial markets and relative market valuation of the underlying funds.
- The Fund uses a cost-effective blend of active and passive management to help achieve its objectives.
The fund is primarily concentrated in underlying funds and is therefore subject to the same risks the funds are invested in and may entail higher expenses. The fund is also subject to valuation risk which is the risk the fund has valued certain securities that won't appreciate as anticipated or remain undervalued for a long period of time.
The underlying funds may be invested in equity securities including more aggressive investments that engage in short selling, options, exchange-traded funds (ETFs), Master Limited Partnerships (MLPs - affected by the natural resources sector of the economy and regulation) and real estate investment trusts (REITs - affected by economic factors related to the real estate industry). The fund's volatility may be amplified by its use of short sales and derivatives. Investments in fixed income and debt type securities are subject to credit risk, call risk, prepayment and interest rate risk so that as interest rates rise the value of bond prices will decline. Investing in high-yield debt (junk) securities involve greater risks and less liquidity than investment grade bonds.
|Class A Shares||Class C Shares||Class Inst'l Shares|
|Subsequent Investment Min.*||$0.00||$0.00||$0.00|
|Max. Up Front Sales Charge||5.75%||N/A||N/A|
|Max. Deferred Sales Charge||N/A||1.00%||N/A|
Fund Performance as of 09.30.2020
|QTR||YTD||1 Year||3 Years||5 Years||10 Years||Since
|A Shares with 5.75% Sales Charge||-3.15%||-14.56%||-12.16%||-2.92%||0.82%||2.84%||3.37%|
|A Shares without Sales Charge||2.77%||-9.34%||-6.78%||-0.98%||2.01%||3.45%||3.63%|
|Lipper Mixed-Asset Target Allocation Conservative Median||3.21%||3.07%||5.71%||4.30%||5.15%||5.10%||N/A|
The total expense ratios for Class A, C and I Shares are 1.47%, 2.22% and 1.22%, respectively.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit the performance summary.
The performance of the Diversified Income Fund reflects the deduction of fees for value-added services associated with a mutual fund, such as investment management and fund accounting fees. The inception date for Class A Shares is 01/29/1998. The inception date for Class C Shares is 02/01/2001. The inception date for Class Inst'l Shares is 10/02/1997. The performance for Class A Shares is based on the historical performance of Class A shares, which commenced operations on 10/2/97. The inception date for C Shares is 2/1/01. The performance for Class C Shares is based on the performance of Class A Shares. The performance shown reflects the reinvestment of all dividend and capital gains distributions. The Fund is structured as a fund-of-funds and is subject to the same risks as the funds they hold. Investors will incur the expenses of the Fund in addition to fees of the underlying funds in the portfolio.
Asset Allocation as of 09.30.2020
Allocations are based on the current weight to funds in the cited Sector. The composition of the fund's holdings is subject to change.
Growth of $10,000 as of 09.30.2020
The Growth of $10,000 chart is hypothetical based upon the performance of A Shares at NAV for the period ended 09/30/2020. It includes the reinvestment of dividends and capital gains.
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The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.