Overview
I
Shares
BUSIX
Inception
Date
11.30.2012
Investment
Min.
$1,000,000
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.
| Term | Class A Shares | Class I Shares |
|---|---|---|
| Ticker | BUSRX | BUSIX |
| Inception Date | 11.30.2012 | 11.30.2012 |
| Investment Min. | $1,000 | $1,000,000 |
| Subsequent Investment Min.2 | N/A | N/A |
| Max. Up Front Sales Charge | N/A | N/A |
| Max. Deferred Sales Charge | N/A | N/A |
2If subsequent investments are made as part of an AIP, the minimum is $25.
Co-Portfolio Manager
Co-Portfolio Manager
Co-Portfolio Manager
Performance
| Term | QTR | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception |
|---|---|---|---|---|---|---|---|
| A Shares with 0.50% Sales Charge | 1.38% | 3.86% | 4.97% | 1.44% | 1.84% | 1.28% | 1.20% |
| A Shares without Sales Charge | 1.38% | 3.86% | 4.97% | 1.44% | 1.84% | 1.28% | 1.20% |
| Institutional Shares | 1.44% | 4.05% | 5.12% | 1.65% | 2.09% | 1.53% | 1.45% |
| Lipper Ultra-Short Obligations Median | 1.42% | 3.98% | 4.98% | 1.44% | 1.78% | 1.39% | 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 09.30.2023
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.
| Name | Value |
|---|---|
| 0-1 Yr. | 90.0 |
| 1-2 Yr. | 9.0 |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
| Name | Value |
|---|---|
| Number of Holdings | 121 |
| Average Life | 0.59 Years |
| Effective Duration | 0.51 Years |
| Annual Turnover | 69% |
| Composition | Fund | Index |
|---|---|---|
| Commercial Paper | 2.9% | 0.0% |
| Corporate | 60.0% | 0.0% |
| Financial Institutions | 27.5% | 0.0% |
| Industrial | 21.7% | 0.0% |
| Utility | 10.8% | 0.0% |
| Government Related | 2.6% | 0.0% |
| Agency | 2.6% | 0.0% |
| Securitized | 28.0% | 0.0% |
| ABS | 13.9% | 0.0% |
| CMBS | 10.3% | 0.0% |
| CMO | 3.7% | 0.0% |
| Treasury | 1.7% | 100.0% |
| Treasury | 1.7% | 100.0% |
| Cash | 4.8% | 0.0% |
| Cash | 4.8% | 0.0% |
| # | Company Name | Value |
|---|---|---|
| 1 | FHLBS 0.44% 23-SEP-2024 | 2.58% |
| 2 | DNB NORBANK ASA 0 CP 10/10/2023 | 2.01% |
| 3 | American Electric Power 2.031% 15-MAR-2024 | 1.79% |
| 4 | Bristol-Myers Squibb Co. 3.25% 01-NOV-2023 | 1.69% |
| 5 | U.S. Treasury 0.0% 10-Oct-2023 | 1.67% |
| 6 | Hertz III SERIES 2021-1 1.21% 25-DEC-2025 | 1.43% |
| 7 | Wells Fargo & Co. 0.805% 19-MAY-2025 | 1.30% |
| 8 | FREDDIE MAC REMICS | 1.22% |
| 9 | HF Sinclair Corp. 2.625% 01-OCT-2023 | 1.19% |
| 10 | Bank of America Corp. FRN 24-OCT-2024 | 1.19% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Growth of $10,000 as of 09.30.2023
The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 09.30.2023. It includes the reinvestment of dividends and capital gains.
Distribution
| Month | Class A Shares | Class Inst'l Shares |
|---|---|---|
| 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 |
| January 2023 | $0.0247 | $0.0267 |
| December 2022 | $0.0231 | $0.0252 |
| Share Class | Without Waivers | With Waivers |
|---|---|---|
| Class A | 4.20% | 4.51% |
| Class I | 4.44% | 4.75% |
Ultra Short Bond Fund
Materials
Fixed Income Funds
Insights
12.01.2023
Sterling Capital Announces Liquidation of the Diverse Multi-Manager Active ETF
Sterling Capital Announces Liquidation of the Diverse Multi-Manager Active ETF
11.29.2023 • Robert Brown, CFA®
High Yield - The Incredible Shrinking Asset Class and the Imminent Fall of the Zombies
The high-yield bond market has been having a relatively good 2023 as technicals remain firm and the feared recession has so far failed to materialize. Through mid-November, the ICE BofA U.S. High Yield Index has generated 7.8% total return year to date and a 6.4% return in excess of duration matched Treasuries. We see a mixed picture for the asset class ahead as all in yields remain attractive, while challenges are increasing as a maturity wall looms.
11.28.2023 • Charles Wittmann, CFA®
The Lead - "Pursuing Sustainable Success"
- As investors, we want our clients to have sustained success, and that means investing in dividend-paying stocks that have a capacity to pay attractive and sustainably-growing dividends. - In the current market environment, we believe those companies are becoming increasingly scarce. - Declining dividend payments in the Energy sector have been a key contributor to the overall decline in S&P 500 dividend growth and we discuss the challenges. - We prefer companies that have rising cash flows that provide more sustainable dividend growth that may position our clients for sustained success.
11.02.2023 • Andrew Richman, CTFA
Markets breathed a sigh of relief following this week's FOMC meeting as the current fed funds rate remained unchanged. Senior Fixed Income Specialist Andy Richman, CTFA, shares his views.
10.31.2023 • Charles Wittmann, CFA®
The Lead - "Balance Sheet Season"
- Rising interest costs are causing companies that fund their businesses through borrowing to reassess their priorities. - By investing in quality companies that we feel generate higher-than-average returns on capital, we believe they have more control over their business and do not depend on excessive debt to fund it. - Dividend payers themselves offer evidence of financial strength and financial health by demonstrating the ability to reward their shareholders with cash proceeds from their business each quarter. - Historically, this is why dividend payers tend to outperform later in an interest rate tightening cycle, as seen in the chart above.
10.03.2023 • Charles Wittmann, CFA®
- In a period of rising interest costs, wages, and energy costs, double-digit dividend growers have outperformed in 2023. - The largest dividend growers are also outpacing high dividend yielders in 2023. - Higher dividend growers are being rewarded in part for their ability to return more cash to their shareholders than slower growth peers. - We believe owning quality companies that earn returns on capital well above their cost of capital have the potential do well in this new environment.
Contact
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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.
