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Short Duration Income Fund

Summary

Summary

What is the Short Duration Income Fund?

The Fund seeks to deliver a high level of current income consistent with the preservation of capital by investing in a variety of short maturity debt securities including, corporate bonds, U.S. government securities, and mortgage- and other asset-backed debt securities.

EXPERIENCED, TENURED TEAM

Managed through collaboration among 40+ investment professionals in portfolio management, credit research, and trading.

STRATEGIC, FLEXIBLE DESIGN

Pursues an agile, multi-sector approach designed to provide a higher yield than a typical short duration strategy, and a lower duration than a traditional core bond strategy.

STRONG PERFORMANCE

Has offered a track record of solid performance in many market environments. 

Yield

Dividend Yield 1 as of 11/13/2019  

w/o sales charge 3.55%

30-Day Standardized Yield 2 as of 10/31/2019  

2.68%

Fund Basicsas of 09/30/2019

Total Net Assets
$53.47 B
Inception Date
10/19/2004
Dividend Frequency
Monthly
Fund Expense Ratio
0.39%
Number of Holdings
1835
Minimum Initial Investment
$1,000,000+

Fund Expense Ratio :

0.39%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 10/19/2004
w/o sales charge 5.02% 5.74% 2.96% 2.70% 3.48% 4.09%
Lipper Category Avg. Short Investment Grade Debt Funds 4.14% 4.57% 2.21% 1.77% 2.09% -
ICE BofAML 1-3 Year U.S. Corporate Index 4.97% 5.79% 2.73% 2.32% 2.66% 3.27%

Fund Expense Ratio :

0.39%

Fund Expense Ratio :

0.39%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 10/19/2004
w/o sales charge 4.71% 5.27% 2.98% 2.70% 3.56% 4.09%
Lipper Category Avg. Short Investment Grade Debt Funds 3.84% 4.26% 2.11% 1.75% 2.14% -
ICE BofAML 1-3 Year U.S. Corporate Index 4.51% 5.35% 2.60% 2.28% 2.71% 3.26%

Fund Expense Ratio :

0.39%

RELATED CONTENT

Fixed Income: What You Need to Know about ABS and CMBS
August 19, 2019

Structured credit products offer the potential for effective portfolio diversification—and attractive valuations versus other asset classes.

Gauging the Opportunity in Short Duration Credit
January 28, 2019

Short-term securities such as corporate bonds, ABS, and CMBS, recently offered yields near multi-year highs, with lower volatility than core bonds.

The Appeal of Short Duration Credit in Strategic Cash Management
December 17, 2018

Yields more than compensate cash managers for taking on minimal credit risk.

Type Assets
Investment Grade Corporate
CMBS
ABS
High Yield Corporate
Bank Loans
U.S. Government Related
Sovereign
MBS
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 09/30/2019 View Portfolio

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

INVESTMENT TEAM

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

Partner & Portfolio Manager

21 Years of Industry Experience

Kewjin Yuoh
Kewjin Yuoh

Partner & Portfolio Manager

25 Years of Industry Experience

Steven F. Rocco
Steven F. Rocco, CFA

Partner & Director of Taxable Fixed Income

18 Years of Industry Experience

Robert A. Lee
Robert A. Lee

Partner & Chief Investment Officer

28 Years of Industry Experience

Supported By 64 Investment Professionals with 15 Years Avg. Industry Experience

Contact a Representative

To contact your representative, enter your zip code and select your channel below.

Performance

Performance

Dividend Yield 1 as of 11/13/2019  

w/o sales charge 3.55%

30-Day Standardized Yield 2 as of 10/31/2019  

  Subsidized3 Un-Subsidized4
w/o sales charge 2.68% 2.68%

Fund Expense Ratio :

0.39%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 10/19/2004
w/o sales charge 5.02% 5.74% 2.96% 2.70% 3.48% 4.09%
Lipper Category Avg. Short Investment Grade Debt Funds 4.14% 4.57% 2.21% 1.77% 2.09% -
ICE BofAML 1-3 Year U.S. Corporate Index 4.97% 5.79% 2.73% 2.32% 2.66% 3.27%

Fund Expense Ratio :

0.39%

Fund Expense Ratio :

0.39%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 10/19/2004
w/o sales charge 4.71% 5.27% 2.98% 2.70% 3.56% 4.09%
Lipper Category Avg. Short Investment Grade Debt Funds 3.84% 4.26% 2.11% 1.75% 2.14% -
ICE BofAML 1-3 Year U.S. Corporate Index 4.51% 5.35% 2.60% 2.28% 2.71% 3.26%

Fund Expense Ratio :

0.39%

Year Fund Returns ICE BofAML 1-3 Year U.S. Corporate Index
2018 1.43% 1.62%
2017 2.73% 1.91%
2016 3.97% 2.39%
2015 0.86% 1.01%
2014 1.70% 1.19%
2013 1.82% 1.78%
2012 6.84% 4.49%
2011 3.35% 1.76%
2010 6.58% 4.86%
2009 17.22% 14.69%
2008 -0.43% -
2007 6.26% -
2006 3.90% -
2005 1.28% -
2004 0.09% -
Year Q1 Q2 Q3 Q4 Yearly Returns
2019 1.98% 1.71% 0.95% - 4.90%
2018 -0.22% 0.55% 0.55% 0.54% 1.43%
2017 1.00% 0.74% 0.73% 0.23% 2.73%
2016 1.29% 1.74% 0.80% 0.09% 3.97%
2015 1.24% 0.34% -0.35% -0.37% 0.86%
2014 0.96% 0.97% -0.11% -0.13% 1.70%
2013 0.74% -0.78% 1.00% 0.85% 1.82%
2012 2.47% 0.84% 2.13% 1.24% 6.84%
2011 0.90% 1.14% -0.58% 1.86% 3.35%
2010 2.28% 1.13% 2.43% 0.59% 6.58%
2009 4.13% 5.61% 4.72% 1.78% 17.22%
2008 1.21% 1.40% -1.76% -1.24% -0.43%
2007 1.57% 0.18% 2.09% 2.30% 6.26%
2006 0.37% 0.36% 2.28% 0.85% 3.90%
2005 -0.38% 1.46% -0.15% 0.36% 1.28%
2004 - - - - 0.09%

NAV Historical Prices

Date Net Asset Value

Portfolio

Portfolio

Type Assets
Investment Grade Corporate
CMBS
ABS
High Yield Corporate
Bank Loans
U.S. Government Related
Sovereign
MBS
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 09/30/2019

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

Portfolio Positioning as of 09/30/2019

  • The portfolio maintained its diversified exposure to various credit-sensitive sectors of the market beyond the corporate bonds represented in its benchmark, the ICE BofAML 1-3 Year U.S. Corporate Index.
  • We increased the portfolio’s allocation to investment grade corporate bonds during the quarter, specifically adding to securities with slightly longer durations, as we consider valuations to be tight at the front end of the curve. We continued to increase the portfolio’s allocation to the financials sector by adding to issues within the banking industry. We also increased the portfolio’s allocation to consumer goods, as consumer fundamentals remain solid relative to other economic data and should support near-term performance.
  • We reduced the portfolio’s allocation to asset-backed securities (“ABS”). We remain attracted to the sector, particularly within the auto loan and credit card receivable space, as we believe ABS provide liquidity and present attractive risk-adjusted returns. However, we consider the ABS sector to be fully valued at this time.
  • The market value of the portfolio’s commercial mortgage-backed securities (“CMBS”) allocation decreased, however, the allocation remained roughly constant from a risk standpoint, as we reinvested only a portion of the proceeds of maturing positions in longer-dated CMBS. We remain focused on single-asset, single-borrower deals, preferring their stronger underwriting standards and domestic focus. We believe single-asset, single-borrower CMBS deals deliver attractive risk-adjusted carry opportunities.
  • The portfolio’s high yield corporate credit allocation is on the low end of where it has historically been, as valuations remain tight.

Portfolio Details as of 09/30/2019

Total Net Assets
$53.47 B
Number of Issues
1835
Average Coupon
3.70%
Average Life
2.36 Years
Average Maturity
2.36 Years
Average Effective Duration
1.79 Years