Flrn Dividend | Ultra Short Bond Fund Details: Most of the U.S. fixed-income securities held by ultrashort bond portfolios are of investment-grade quality. They have less than one year (or, if the duration is unavailable, average effective maturities of less than one year).
Portfolios of ultrashort corporate or government bonds can be included in this category, but international, convertible, multisector, and high yield bond portfolios are excluded.
Investing in bonds with very short maturities reduces interest-rate sensitivity, resulting in lower risk and higher total return potential.
Flrn Dividend | Ultra Short Bond Fund Details
Process And Philosophy
Under normal circumstances, FundFund invests at least 80 per cent of its net assets plus borrowings for investment purposes in fix income securities to achieve its investment objective (bonds). The expected duration is 18 months or less, with a maturity range of 0 to 24 months.
The portfolio manager uses a “top-down” investment management approach in managing the portfolio. To determine a target duration, the portfolio manager looks at macroeconomic trends.
While interest rate trends are consider when addressing the yield curve, other considerations include inflation and supply forecasts and future interest rate expectations. Interest rates, volatility, and relative spread analysis are used to determine sector weighting.
Accordingly, he selects individual securities consistent with the target by looking for relative values within particular sectors. Structure and embeding features of potential securities are examine in the analysis.
Potential corporate holdings are evaluated base on puts, calls, sinking fund requirements, prepayment and extension risk, and individual company financials. For these assessments, the primary tool used is scenario analysis.
What To Consider When Investing?
It is subject to the same credit, prepayment, call, and interest rate risks as the underlying bonds in the portfolio. Bond prices will decrease in value as interest rates rise.
Foreign securities, which are subject to currency and exchange rate fluctuations; mortgage- and asset-backed securities that are interest-rate sensitive; and high-yield debt (also known as junk bonds) may expose the FundFund to greater volatility and reduced liquidity.
In this FundFund, the United States government and its agencies issue or guarantee securities. For the FundFund, these guarantees do not apply.
A municipality’s economic, political, and other conditions may make municipal obligations a riskier investment. Securities may trade actively by the FundFund, resulting in higher transaction costs and decreased performance.
Hence these ratios are 0.81 per cent for Class A and 0.53% for Class I Shares. In Class A and I shares, the respective net expense ratios are 0.56% and 0.28%.
From February 1, 2021, through January 31, 2022, specific fees paid by the Fund will limit by the Advisor, as per their contract. As a result of the limitations in place, performance will have less impression.
Future results are not guarantee by past performance. As a result, current returns may be lower or higher than those shown in the performance data quoted.
An investor’s shares, when redeem, may worth more or less than they initially purchase for.