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Quality Income Fund

Mutual Funds

Quality Income Fund

Fund Managers

Photo of Michael  Sun

Michael Sun, CFA®

Photo of Jeffrey  Ormsby

Jeffrey Ormsby, CFA®

Photo of Byron  Mims

Byron Mims, CFA®








Investment Min.1


Max. Up Front
Sales Charge


Max. Deferred
Sales Charge


1If subsequent investments are made as part of an AIP, the minimum is $25.

Philosophy & Process

In managing the fund, the portfolio management team employs a multi-faceted approach to generate excess return and uses a combination of top-down and bottom-up analysis, quantitative vs. qualitative analysis and fundamentals vs. valuation. There is a strong emphasis on risk management and an adherence to certain core investment beliefs:

  • "If you cannot measure it, you cannot manage it."
  • Avoid unintended exposures
  • Average duration around 2 to 5 years with focus on high quality and risk management
  • Participate in longer term trends - don't buy on short-term trends or try to time what is going on in the market
  • Attempts to achieve risk-adjusted performance over time

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; derivatives (futures and swaps); mortgage 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. Derivatives may be more sensitive to changes in market conditions and may amplify risks.

Fund Facts

Term Class A Shares Class C Shares Class I Shares
Inception Date 02.01.201302.01.201302.01.2013
Investment Min. $1,000$1,000$1,000,000
Subsequent Investment Min.2 N/AN/AN/A
Max. Up Front Sales Charge 2%N/AN/A
Max. Deferred Sales Charge N/A1%N/A

2If subsequent investments are made as part of an AIP, the minimum is $25.

Quality Income Fund


View professional designations disclosures

Photo of Michael  Sun

Michael Sun, CFA®

Co-Portfolio Manager

Photo of Jeffrey  Ormsby

Jeffrey Ormsby, CFA®

Co-Portfolio Manager

Photo of Byron  Mims

Byron Mims, CFA®

Co-Portfolio Manager


Fund Performance as of 12.31.2023

Term QTR YTD 1 Year 3 Years 5 Years 10 Years Since Inception
A Shares with 2.00% Sales Charge 3.68% 2.71% 2.71% -2.75% 0.35% 1.48% 1.64%
A Shares without Sales Charge 5.74% 4.81% 4.81% -2.09% 0.76% 1.68% 1.80%
Institutional Shares 5.80% 5.07% 5.07% -1.84% 0.99% 1.95% 2.03%
Lipper U.S. Mortgage Median 6.96% 4.91% 4.91% -3.04% 0.20% 1.24% N/A

The gross expense ratios for Class A, C and I Shares are 0.88%, 1.63% and 0.63%, respectively. The net expense ratios for Class A, C and I Shares are 0.84%, 1.59% and 0.59%, 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 Securitized Opportunities 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 02.01.2013. The inception date for Class C Shares is 02.01.2013. The inception date for Class Inst'l Shares is 02.01.2013. Performance for Class A Shares, Class C Shares and Institutional Shares for periods prior to inception on February 1, 2013 is based on performance of Class S Shares of the Fund which were re-designated as Institutional Shares as of February 1, 2013. Class A Shares, Class C Shares and Institutional Shares of the Fund would have substantially similar performance because the Shares are invested in the same portfolio of securities and the performance would differ only to the extent that the Classes have different expenses. The performance shown reflects the reinvestment of all dividend and capital gains distributions.


Quality Breakdown as of 12.31.2023

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 12.31.2023

Name Value
0-1 Yr. 7.0
1-2 Yr. 6.0
2-3 Yr. 13.0
3-5 Yr. 21.0
5-10 Yr. 44.0
10+ Yr. 6.0

Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.

Summary Statistics as of 12.31.2023

Name Value
Number of Holdings 232
Average Life 7.02 Years
Effective Duration 5.03 Years
Annual Turnover 20%

Portfolio Composition as of 12.31.2023

Composition Fund Index
Government Related 0.5% 0.0%
    Agency 0.5% 0.0%
Securitized 93.2% 100.0%
    MBS 0.5% 0.0%
    ABS 15.5% 0.0%
    CMBS 18.2% 0.0%
    CMO 23.5% 0.0%
    MBS Passthrough 35.5% 100.0%
Treasury 5.3% 0.0%
    Treasury 5.3% 0.0%
[Cash] 1.0% 0.0%
    [Cash] 1.0% 0.0%

Top Ten Holdings as of 12.31.2023

# Company Name Value
1 U.S. Treasury 2.375% 15-Feb-2042 1.97%
2 Fhlmc 30Yr Pool#Sd3223 6.000% 01-Jul-2053 1.53%
3 Fnma, Series 2017-42, Class Hl 1.51%
4 Onemain Direct Auto Trust 2023-1 5.41% 14-Nov-2029 1.49%
5 Avis Budget Rental Car (Aesop) Llc 5.49% 20-Jun-2029 1.42%
6 Fhlmc 30Yr Pool#Sd2952 4.500% 01-May-2053 1.40%
7 U.S. Treasury 0.625% 15-May-2030 1.39%
8 Fnma 30Yr Pool#Fs1976 4.000% 01-Aug-2051 1.34%
9 Hertz Vehicle Financing 2021-2 1.68% 25-Dec-2027 1.32%
10 Fhlmc 30Yr Pool#Sd1515 4.500% 01-Aug-2052 1.25%

Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.

Growth of $10,000 as of 12.31.2023

The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 12.31.2023. It includes the reinvestment of dividends and capital gains.


Monthly Dividend Distribution as of 01.31.2024

Month Class A Shares Class C Shares Class Inst'l Shares
January 2024 $0.0235 $0.0182 $0.0254
December 2023 $0.0232 $0.0181 $0.0251
November 2023 $0.0230 $0.0183 $0.0248
October 2023 $0.0229 $0.0187 $0.0247
September 2023 $0.0221 $0.0173 $0.0239
August 2023 $0.0220 $0.0163 $0.0239
July 2023 $0.0216 $0.0158 $0.0234
June 2023 $0.0213 $0.0161 $0.0232
May 2023 $0.0208 $0.0154 $0.0228
April 2023 $0.0202 $0.0151 $0.0221
March 2023 $0.0201 $0.0145 $0.0220
February 2023 $0.0194 $0.0146 $0.0211

30-Day SEC Yield as of 01.31.2024

Share Class Without Waivers With Waivers
Class A 3.21% 3.25%
Class C 2.49% 2.53%
Class I 3.52% 3.56%

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