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Ultra Short Bond Fund

Mutual Funds

Ultra Short Bond Fund


Fund Managers

Photo of Mark  Montgomery

Mark Montgomery, CFA®

Photo of Byron  Mims

Byron Mims, CFA®

Photo of Jeffrey  Ormsby

Jeffrey Ormsby, CFA®

Overview

A
Shares

BUSRX

Inception
Date

11.30.2012

Investment
Min.

$1,000

Subsequent
Investment Min.1

N/A

Max. Up Front
Sales Charge

N/A

Max. Deferred
Sales Charge

N/A

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

Philosophy & 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

Term Class A Shares Class I Shares
Ticker BUSRXBUSIX
Inception Date 11.30.201211.30.2012
Investment Min. $1,000$1,000,000
Subsequent Investment Min.2 N/AN/A
Max. Up Front Sales Charge N/AN/A
Max. Deferred Sales Charge N/AN/A

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

Ultra Short Bond Fund

Management

View professional designations disclosures

Photo of Mark  Montgomery

Mark Montgomery, CFA®

Co-Portfolio Manager

Photo of Byron  Mims

Byron Mims, CFA®

Co-Portfolio Manager

Photo of Jeffrey  Ormsby

Jeffrey Ormsby, CFA®

Co-Portfolio Manager

Performance

Fund Performance as of 12.31.2023

Term QTR YTD 1 Year 3 Years 5 Years 10 Years Since Inception
A Shares with 0.50% Sales Charge 1.67% 5.59% 5.59% 1.88% 2.11% 1.44% 1.32%
A Shares without Sales Charge 1.67% 5.59% 5.59% 1.88% 2.11% 1.44% 1.32%
Institutional Shares 1.73% 5.85% 5.85% 2.13% 2.36% 1.70% 1.57%
Lipper Ultra-Short Obligations Median 1.80% 5.80% 5.80% 1.94% 2.08% 1.57% 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 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. 93.0
1-2 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 121
Average Life 0.59 Years
Effective Duration 0.51 Years
Annual Turnover 48%

Portfolio Composition as of 12.31.2023

Composition Fund Index
Government Related 2.6% 0.0%
    Agency 2.6% 0.0%
Corporate 59.1% 0.0%
    Financial Institutions 24.6% 0.0%
    Industrial 22.4% 0.0%
    Utility 12.1% 0.0%
Securitized 30.0% 0.0%
    ABS 16.1% 0.0%
    CMBS 8.8% 0.0%
    CMO 5.0% 0.0%
Treasury 5.0% 100.0%
    Treasury 5.0% 100.0%
[Cash] 3.5% 0.0%
    [Cash] 3.5% 0.0%

Top Ten Holdings as of 12.31.2023

# Company Name Value
1 U.S. Treasury 0.0% 07-Mar-2024 2.56%
2 Federal Home Loan Bank System 0.44% 23-Sep-2024 2.54%
3 U.S. Treasury 0.0% 04-Jan-2024 2.36%
4 Fannie Mae Remics 1.93%
5 American Electric Power Company, Inc. 2.031% 15-Mar-2024 1.76%
6 Hertz Vehicle Financing Iii Series 2021-1 1.21% 25-Dec-2025 1.72%
7 Avis Budget Rental Car Funding (Aesop) Llc 2.36% 20-Mar-2026 1.49%
8 Wells Fargo & Company 0.805% 19-May-2025 1.27%
9 Morgan Stanley 0.864% 21-Oct-2025 1.25%
10 World Omni Auto Receivables Trust 2020-C 0.61% 15-Oct-2026 1.17%

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.

Distribution

Monthly Dividend Distribution as of 01.31.2024

Month Class A Shares Class Inst'l Shares
January 2024 $0.0389 $0.0410
December 2023 $0.0377 $0.0397
November 2023 $0.0362 $0.0382
October 2023 $0.0369 $0.0389
September 2023 $0.0361 $0.0381
August 2023 $0.0345 $0.0365
July 2023 $0.0323 $0.0344
June 2023 $0.0318 $0.0338
May 2023 $0.0315 $0.0335
April 2023 $0.0312 $0.0334
March 2023 $0.0296 $0.0314
February 2023 $0.0239 $0.0257

30-Day SEC Yield as of 01.31.2024

Share Class Without Waivers With Waivers
Class A 4.26% 4.55%
Class I 4.50% 4.79%

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