“The fund is designed to look for the best opportunities available in the context of a high quality, laddered portfolio. We strive to bring as much income as is consistent with lower volatility and our focus on balancing risk with reward.”
— Jason Brady
In this portfolio, issuer credit quality generally is high, as the fund invests at least 65% of its net assets in debt obligations rated A or higher by a nationally recognized statistical rating organization, or if no credit rating is available, those we judge to be of equivalent quality. When purchased, all bonds must be investment grade quality.
While Limited Term Income is structured as a 10-year ladder, we enjoy the flexibility to invest wherever we see the most value. Analysts and portfolio managers are expected to be conversant across a wide range of asset classes and geographies.
The fund is a 10-year laddered portfolio, managed with an eye toward mitigated volatility. As markets are inherently volatile, some price movement is expected. But through careful credit research and portfolio construction, we seek to mute price change.
Many “core” investment-grade bond funds seek to enhance yield by extending duration, lowering credit quality, and even through the use of leverage. While the fund is flexible in pursuit of its goals, we keep things reasonable. We want a reasonable level of income commensurate with a moderate level of risk; we won’t assume undue risk in pursuit of a few extra basis points.
Laddering involves building a portfolio of staggered maturities so that a portion will mature each year. Money from maturing bonds provides an organic source of cash flow and is typically reinvested in longer-maturity bonds within the range of the ladder. For this fund, the ladder ranges from zero to 10 years.
2012 – The firm ranked #1 out of 41 eligible firms in Lipper Inc.'s fixed income large firm universe for the three-year period ended 11/30/11.
2008 – The firm ranked #1 out of 41 eligible firms in Lipper Inc.'s fixed income large firm universe for the three-year period ended 12/31/07.