Ultra Short Bond Fund Fact Sheet
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Morningstar Style Box
Inception: 11.30.2012
Inception: 11.30.2012
Philosophy and Process
To pursue its investment objective, the Fund invests, under normal circumstances, at least 80% of its net assets plus borrowings for investment purposes in fixed income securities (bonds). The Fund will maintain an average duration of 18 months or less and the average maturity is expected to be between zero and 24 months.
In managing the portfolio, the portfolio manager uses a "top down" investment management approach focusing on allocation among sectors, credit risk, and individual securities selection. The portfolio manager focuses on macro trends in the economy to establish a duration target that reflects the outlook for the future direction of interest rates. For yield curve management, in addition to the trend in interest rates, other factors such as future inflation expectations, supply factors, and future interest rate expectations are considered. Sector weightings are driven by a combination of the portfolio manager's macro view on interest rates and volatility as well as relative spread analysis. Utilizing fundamental analysis the portfolio manager then selects individual securities consistent with the target by looking for the best relative values within particular sectors. The analysis includes an attempt to understand the structure and embedded features of potential securities. Features that are analyzed include puts, calls, sinking fund requirements, prepayment and extension risk, and individual company financial data for potential corporate holdings. Scenario analysis is the primary tool employed for these assessments.
Investment Considerations
The fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest rate risk. As interest rates rise the value of bond prices will decline. The fund may invest in more aggressive investments such as foreign securities which may expose the fund to currency and exchange rate fluctuations; mortgage-backed and asset-backed securities sensitive to interest rates and high yield debt (also known as junk bonds) all of which may cause greater volatility and less liquidity. The fund invests in securities issued or guaranteed by the U.S. government or its agencies. These guarantees do not apply to the fund. Investments in municipal obligations may be subject to more risk depending on economic, political and other conditions within the state and municipality. The fund may trade securities actively, which could increase its transaction costs thereby lowering its performance.
Fund Facts
| Class A Shares | Class Inst'l Shares | |
|---|---|---|
| Ticker | BUSRX | BUSIX |
| Inception Date | 11.30.2012 | 11.30.2012 |
| Investment Min. | $1,000.00 | $1,000,000.00 |
| Subsequent Investment Min.* | $0.00 | $0.00 |
| Max. Up Front Sales Charge | 0.50% | N/A |
| Max. Deferred Sales Charge | N/A | N/A |
Management
Performance
Fund Performance as of 06.30.2019
| QTR | YTD | 1 Year | 3 Years | 5 Years | Since Inception |
|
|---|---|---|---|---|---|---|
| A Shares with 0.50% Sales Charge | 0.32% | 1.36% | 2.28% | 1.38% | 1.02% | 0.84% |
| A Shares without Sales Charge | 0.84% | 1.88% | 2.80% | 1.55% | 1.12% | 0.91% |
| Institutional Shares | 0.90% | 2.01% | 3.06% | 1.81% | 1.37% | 1.16% |
| Lipper Ultra-Short Obligations Median | 0.78% | 1.71% | 2.68% | 1.80% | 1.26% | N/A |
The gross expense ratios for Class A and I Shares are 0.76% and 0.51%, respectively. The net expense ratios for Class A and I Shares are 0.66% and 0.41%, respectively.
The Advisor has contractually agreed to limit certain fees paid by the Fund from February 1, 2019 through January 31, 2020. Performance would have been lower without limitations in effect.
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 Ultra Short Bond 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 11/30/2012. The inception date for Class Inst'l Shares is 11/30/2012. The performance shown reflects the reinvestment of all dividend and capital gains distributions.
Characteristics
Quality Breakdown as of 06.30.2019
Credit quality ratings using Moody's rating symbols reflect the credit quality of the underlying bonds in the fund portfolio and not of the Fund itself. Moody's assigns a range of ratings from Aaa being the highest quality to C being the lowest rated class of bonds. Securities not rated by Moody's may be rated by S&P, Fitch or if no agency rating is available, the Fund will assign a rating of not rated. Bond quality ratings are subject to change.
Effective Duration Breakdown as of 06.30.2019
| Name | Value |
|---|---|
| 0-1 Yr. | 78.5 |
| 1-2 Yrs. | 20.4 |
| 3-5 Yrs. | 1.2 |
Summary Statistics as of 06.30.2019
| Name | Value |
|---|---|
| Number of Holdings | 114 |
| Average Life | 0.86 Years |
| Effective Duration | 0.57 Years |
| Annual Turnover | 0.88 |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Portfolio Composition as of 06.30.2019
| Composition | Fund | Index |
|---|---|---|
| Cash & Equivalents | 1.4% | 0.0% |
| Cash & Equivalents | 1.4% | 0.0% |
| Corporate | 72.7% | 0.0% |
| Financial Institutions | 29.2% | 0.0% |
| Industrial | 38.7% | 0.0% |
| Utility | 4.9% | 0.0% |
| Government Related | 1.1% | 0.0% |
| Agency | 1.1% | 0.0% |
| Securitized | 24.8% | 0.0% |
| ABS | 19.5% | 0.0% |
| CMBS | 2.9% | 0.0% |
| CMO | 2.4% | 0.0% |
| Treasury | 0.0% | 100.0% |
Top Ten Holdings as of 06.30.2019
| Name | Value |
|---|---|
| Martin Marietta Materials, Inc. FRN 20-DEC-2019 | 1.63% |
| Wheels SPV 2 LLC Series 2018-1 3.06% 20-APR-2027 | 1.39% |
| Avis Budget Rental Car Fund Aesop, LLC, Series 2016-1A, Cl A | 1.38% |
| Hertz Fleet Lease Funding L.P., Series 2019-1, Class A2 | 1.38% |
| Cenovus Energy Inc. 5.7% 15-OCT-2019 | 1.34% |
| Smithfield Foods, Inc. 2.7% 31-JAN-2020 | 1.32% |
| Ari Fleet Lease Trust, Series 2019-A, Class A2A | 1.29% |
| Kinder Morgan, Inc. 3.05% 01-DEC-2019 | 1.28% |
| DBUBS 2011-LC2 Mortgage Trust 4.537% 12-JUL-2044 | 1.25% |
| Chesapeake Funding Ii Series 2017-4 2.12% 15-NOV-2029 | 1.22% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Sector Allocation as of 06.30.2019
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 06.30.2019
The Growth of $10,000 chart is hypothetical based upon the performance of A Shares at NAV for the period ended 06/30/2019. It includes the reinvestment of dividends and capital gains.
Distribution
Monthly Dividend Distribution as of 07.31.2019
| Month | Class A Shares | Class Inst'l Shares |
|---|---|---|
| July 2019 | $0.0194 | $0.0215 |
| June 2019 | $0.0194 | $0.0214 |
| May 2019 | $0.0220 | $0.0241 |
| April 2019 | $0.0202 | $0.0222 |
| March 2019 | $0.0212 | $0.0233 |
| February 2019 | $0.0187 | $0.0206 |
| January 2019 | $0.0205 | $0.0225 |
| December 2018 | $0.0190 | $0.0211 |
| November 2018 | $0.0164 | $0.0184 |
| October 2018 | $0.0166 | $0.0187 |
| September 2018 | $0.0151 | $0.0171 |
| August 2018 | $0.0156 | $0.0177 |
30-Day SEC Yield as of 07.31.2019
| Without Waivers | With Waivers | |
|---|---|---|
| Class A | 2.03% | 2.13% |
| Class I | 2.30% | 2.40% |
© 2019 Morningstar. 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. Past performance is no guarantee of future results.
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.
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