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Inflation Focused Fund

Summary

Summary

What is the Inflation Focused Fund?

The Fund seeks to deliver total returns that exceed the rate of inflation in the U.S. over a full inflation cycle and current income by combining investments in inflation-linked derivatives with a portfolio of fixed income securities.

EXPERIENCED INVESTMENT TEAM

The strategy is managed through a collaboration among 40+ investment professionals in portfolio management, credit research, and trading.

HIGHER INCOME POTENTIAL WITH LOWER DURATION

The strategy has provided the highest income stream in the Morningstar category and offers inflation protection with one-third the duration of the average TIPS-based portfolio.

TRUE INFLATION PROTECTION

The Fund has historically demonstrated negative correlation with Treasuries, providing diversification benefits to clients' portfolios.

Yield

Dividend Yield 1 as of 05/17/2019  

w/o sales charge 4.66%

30-Day Standardized Yield 2 as of 04/30/2019  

3.03%

Fund Basicsas of 04/30/2019

Total Net Assets
$1.25 B
Inception Date
04/29/2011
Dividend Frequency
Monthly
Fund Expense Ratio
0.46%
Number of Holdings
1444
Minimum Initial Investment
$1,000,000+

Fund Expense Ratio :

0.46%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 04/29/2011
w/o sales charge 3.93% 1.49% 3.02% 0.32% - 0.86%
Lipper Category Avg. Inflation Protected Bond Funds 3.57% 2.51% 1.62% 1.08% - -

Fund Expense Ratio :

0.46%

Fund Expense Ratio :

0.46%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 04/29/2011
w/o sales charge 2.73% 1.08% 3.05% 0.18% - 0.72%
Lipper Category Avg. Inflation Protected Bond Funds 3.11% 2.04% 1.63% 1.16% - -

Fund Expense Ratio :

0.46%

RELATED CONTENT

Inflation Protection: Seeking Relief from the “Silent Thief”
September 17, 2018

Here, we spotlight a strategy that may help investors counter inflation’s negative effects without undue interest-rate risk.

Beyond TIPS: A “Pure Play” in Inflation Protection
June 11, 2018

CPI swaps, combined with a strategic allocation of short-term bonds, represent a more direct approach to targeting inflation—without the interest-rate risk of Treasury inflation-protected securities.

U.S. Inflation: No Heartbreak from Strong January CPI
February 14, 2018

While key measures in the January report came in higher than expected, it shouldn’t raise alarm bells for the U.S. Federal Reserve.

Type Assets
Investment Grade Corporate
CMBS
ABS
High Yield Corporate
Bank Loans
U.S. Government Related
MBS
Sovereign
Other
Cash
Maturity Assets
Less than 1 year
1-2.99 years
3-4.99 years
5-6.99 years
7-9.99 years

Credit Quality Distribution as of 04/30/2019 View Portfolio

Rating Assets
U.S. Treasury
Agency
AAA
AA
A
BBB
<BBB
Not Rated

Investment Team

Kewjin Yuoh
Kewjin Yuoh

Partner & Portfolio Manager

25 Years of Industry Experience

Andrew H. O'Brien
Andrew H. O'Brien, CFA

Partner & Portfolio Manager

21 Years of Industry Experience

Steven F. Rocco
Steven F. Rocco, CFA

Partner & Director of Taxable Fixed Income

18 Years of Industry Experience

Hyun Lee
Hyun Lee, CFA

Portfolio Manager

18 Years of Industry Experience

Robert A. Lee
Robert A. Lee

Partner & Chief Investment Officer

28 Years of Industry Experience

Supported By 66 Investment Professionals with 15 Years Avg. Industry Experience

Contact a Representative

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Performance

Performance

Dividend Yield 1 as of 05/17/2019  

w/o sales charge 4.66%

30-Day Standardized Yield 2 as of 04/30/2019  

  Subsidized5 Un-Subsidized6
w/o sales charge 3.03% 3.03%

Fund Expense Ratio :

0.46%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 04/29/2011
w/o sales charge 3.93% 1.49% 3.02% 0.32% - 0.86%
Lipper Category Avg. Inflation Protected Bond Funds 3.57% 2.51% 1.62% 1.08% - -

Fund Expense Ratio :

0.46%

Fund Expense Ratio :

0.46%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 04/29/2011
w/o sales charge 2.73% 1.08% 3.05% 0.18% - 0.72%
Lipper Category Avg. Inflation Protected Bond Funds 3.11% 2.04% 1.63% 1.16% - -

Fund Expense Ratio :

0.46%

Year Fund Returns
2018 -1.08%
2017 1.45%
2016 5.25%
2015 -2.02%
2014 -5.01%
2013 -1.50%
2012 10.02%
2011 -3.31%
Year Q1 Q2 Q3 Q4 Yearly Returns
2019 2.73% - - - 2.98%
2018 0.54% 1.00% 0.76% -3.32% -1.08%
2017 0.78% -1.56% 1.27% 0.98% 1.45%
2016 -0.85% -0.60% 2.59% 4.10% 5.25%
2015 -0.13% 1.77% -4.63% 1.08% -2.02%
2014 0.07% 2.26% -2.76% -4.54% -5.01%
2013 0.62% -3.70% 1.38% 0.27% -1.50%
2012 5.39% -0.87% 3.14% 2.10% 10.02%
2011 - - -5.93% 2.26% -3.31%

NAV Historical Prices

Date Net Asset Value

Portfolio

Portfolio

Rating Assets
Investment Grade Corporate
CMBS
ABS
High Yield Corporate
Bank Loans
U.S. Government Related
MBS
Sovereign
Other
Cash
Rating Assets
Less than 1 year
1-2.99 years
3-4.99 years
5-6.99 years
7-9.99 years

Credit Quality Distribution as of 04/30/2019

Rating Assets
U.S. Treasury
Agency
AAA
AA
A
BBB
<BBB
Not Rated

Portfolio Positioning as of 03/31/2019

  • The strategic design of this portfolio takes a different approach to inflation protection than its benchmark, which is comprised entirely of U.S. Treasury Inflation Protected Securities ("TIPS"). The portfolio combines a short-term bond strategy with an overlay of Consumer Price Index ("CPI") swaps in order to hedge against inflation over a full cycle. CPI swaps contributed to the portfolio’s performance, as inflation expectations increased modestly during the quarter due to the oil rebound and the market pricing in the scenario that the U.S. Federal Reserve (“Fed”) will review and possibly change its approach to inflation targeting in the second half of 2019.
  • For the underlying bond portfolio, we maintain a diversified exposure to various credit-sensitive sectors of the market. Consistent with the past several years, the portfolio maintained only minor exposures to Treasuries and agency securities over the quarter, primarily holding positions in those sectors for liquidity management purposes.
  • Following the increased volatility and spread widening that occurred at the end of 2018, we increased the portfolio’s exposure to investment grade corporate bonds, maintaining a focus on the “BBB” credit tier. As demand for high quality short term corporates increased and spreads tightened, we reduced the allocation capitalizing on the gain, and reallocated to commercial paper and bank loans. Given our fundamental outlook and the market flow environment, we believed investment grade bank loans offered attractive relative value versus investment grade corporate credit.
  • We also increased the portfolio’s allocation to asset-backed securities ("ABS"). We remain attracted to ABS that are backed by auto loans and credit card receivables and believe this area of the market offers relative value and opportunities to capture favorable risk-adjusted spread. In particular, we continue to focus on higher-quality securities and have opportunistically added to slightly longer maturities as spreads have become more attractive.
  • We reduced the portfolio’s allocation to commercial mortgage-backed securities ("CMBS"). While we continue to maintain a positive outlook on the commercial real-estate sector, particularly within single-asset, single-borrower deals, we decreased the portfolio’s exposure in “AAA” rated CMBS in order to take advantage of opportunities in other sectors.

Portfolio Details as of 04/30/2019

Total Net Assets
$1.25 B
Number of Issues
1444
Average Coupon
4.12%
Average Life
2.39 Years
Average Maturity
2.39 Years
Average Effective Duration
2.22 Years

Dividends & Cap Gains

Dividends & Cap Gains

Dividend Payments

Dividend Payments

For
YTD Dividends Paidas of 05/17/2019
$0.163
Dividend Frequency
Monthly (Daily Accrual)
Record Date Ex-Dividend Date Reinvest & Payable Date Dividend Reinvest Price
Daily Daily 04/30/2019 $0.04449 $11.60
Daily Daily 03/31/2019 $0.04014 $11.51
Daily Daily 02/28/2019 $0.03948 $11.53
Daily Daily 01/31/2019 $0.03943 $11.49

Upcoming Dividend Payment Dates

Record Date Ex-Dividend Date Reinvest & Payable Date
Daily Daily 05/31/2019
Daily Daily 06/30/2019
Daily Daily 07/31/2019
Daily Daily 08/31/2019
Daily Daily 09/30/2019
Daily Daily 10/31/2019
Daily Daily 11/30/2019
Daily Daily 12/31/2019

Fees & Expenses

Fees & Expenses

Expense Ratioas of 04/30/2019

0.46%

Fund Documents

Fund Documents

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Summary Prospectus
Publish Date:11/03/2015
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Statutory Prospectus
Publish Date:11/03/2015
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Prospectus (XBRL)
Publish Date:11/03/2015
SAI
Publish Date:11/03/2015
Annual Report
Publish Date:11/03/2015
Semi-Annual Report
Publish Date:11/03/2015
Fact Sheet
Publish Date:11/03/2015
Commentary
Publish Date:11/03/2015
Publish Date:11/03/2015

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