Ultra Short Bond Fund Fact Sheet
Overall Morningstar Rating™
Morningstar Category: Ultrashort Bond
*Based on risk-adjusted returns among 215 funds as of 11.30.2021.Ultra Short Bond Fund
Overall Morningstar Rating™
4 of 5 stars
Overall rating based on risk-adjusted returns against 215 Morningstar Ultrashort Bond Funds, derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics.
| Morningstar Rating | Morningstar Absolute Ranking | Funds in Category | |
|---|---|---|---|
| Overall | |
215 | |
| 3 year | |
42 | 215 |
| 5 year | |
45 | 177 |
| 10 year | N/A | N/A |
| High | |||
| Med. | |||
| Low | |||
| Ltd. | Mod. | Ext. |
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
| Type | 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 | $0 |
| Max. Up Front Sales Charge | N/A | N/A |
| Max. Deferred Sales Charge | N/A | N/A |
Management
Mark M. Montgomery, CFA®
Senior Managing Director
Byron G. Mims, CFA®
Executive Director
Jeffrey D. Ormsby, CFA®
Executive Director
Performance
Fund Performance as of 12.31.2021
| Share | QTR | YTD | 1 Year | 3 Years | 5 Years | Since Inception |
|---|---|---|---|---|---|---|
| A Shares with 0.50% Sales Charge | -0.18% | -0.04% | -0.04% | 1.62% | 1.48% | 0.99% |
| A Shares without Sales Charge | -0.18% | -0.04% | -0.04% | 1.62% | 1.48% | 0.99% |
| Institutional Shares | -0.12% | 0.31% | 0.31% | 1.91% | 1.75% | 1.25% |
| Lipper Ultra-Short Obligations Median | -0.17% | 0.06% | 0.06% | 1.46% | 1.50% | N/A |
The gross expense ratios for Class A and I Shares are 0.81% and 0.53%, respectively. The net expense ratios for Class A and I Shares are 0.56% and 0.28%, respectively.
The Advisor has contractually agreed to limit certain fees paid by the Fund from February 1, 2021 through January 31, 2022. 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 09.30.2021
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 09.30.2021
| Name | Value |
|---|---|
| 0-1 Yr. | 69.1 |
| 1-2 Yr. | 27.1 |
| 2-3 Yr. | 3.6 |
| 3-5 Yr. | 0.1 |
Summary Statistics as of 09.30.2021
| Name | Value |
|---|---|
| Number of Holdings | 165 |
| Average Life | 1.01 Years |
| Effective Duration | 0.82 Years |
| Annual Turnover | 49% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Portfolio Composition as of 09.30.2021
| Composition | Fund | Index |
|---|---|---|
| Cash & Equivalents | 5.3% | 0.0% |
| Cash & Equivalents | 5.3% | 0.0% |
| Corporate | 60.8% | 0.0% |
| Financial Institutions | 25.8% | 0.0% |
| Industrial | 30.0% | 0.0% |
| Utility | 5.0% | 0.0% |
| Government Related | 1.3% | 0.0% |
| Local Authority | 1.3% | 0.0% |
| Securitized | 32.5% | 0.0% |
| ABS | 18.3% | 0.0% |
| CMBS | 13.8% | 0.0% |
| CMO | 0.4% | 0.0% |
| Treasury | 0.0% | 100.0% |
| Treasury | 0.0% | 100.0% |
Top Ten Holdings as of 09.30.2021
| Name | Value |
|---|---|
| Avis Budget Rental Car Funding (Aesop) Llc 3.7% 20-Sep-2024 | 1.39% |
| Goldman Sachs Group, Inc Frn 23-Feb-2023 | 1.33% |
| Avis Budget Rental Car Funding Series 2019-1 3.45% 20-Mar-2023 | 1.14% |
| Ari Fleet Lease Trust 2019-A 2.41% 15-Nov-2027 | 1.04% |
| Citigroup Inc 3.142% 24-Jan-2023 | 1.02% |
| Santander Drive Auto Receivables Trust 2020-3 0.69% 17-Mar-2025 | 1.01% |
| Santander Consumer Auto Receivables Trust 2020-B 0.46% 15-Aug-2024 | 0.98% |
| GS Mortgage Securities Trust 2013-Gcj12 3.135% 12-Jun-2046 | 0.96% |
| Penske Truck Leasing Co. Lp 3.375% 01-Feb-2022 | 0.95% |
| Comm 2013-Ccre6 Mortgage Trust 3.101% 12-Mar-2046 | 0.95% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Growth of $10,000 as of 09.30.2021
The Growth of $10,000 chart is hypothetical based upon the performance of A Shares at NAV for the period ended 09/30/2021. It includes the reinvestment of dividends and capital gains.
Distribution
Monthly Dividend Distribution as of 12.31.2021
| Month | Class A Shares | Class Inst'l Shares |
|---|---|---|
| December 2021 | $0.0074 | $0.0094 |
| November 2021 | $0.0071 | $0.0091 |
| October 2021 | $0.0077 | $0.0098 |
| September 2021 | $0.0076 | $0.0094 |
| August 2021 | $0.0076 | $0.0097 |
| July 2021 | $0.0076 | $0.0097 |
| June 2021 | $0.0076 | $0.0096 |
| May 2021 | $0.0080 | $0.0101 |
| April 2021 | $0.0121 | $0.0141 |
| March 2021 | $0.0080 | $0.0101 |
| February 2021 | $0.0078 | $0.0097 |
| January 2021 | $0.0079 | $0.0100 |
30-Day SEC Yield as of 12.31.2021
| Without Waivers | With Waivers | |
|---|---|---|
| Class A | 0.63% | 0.83% |
| Class I | 0.88% | 1.07% |
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