Mutual Funds & ETFs

High yield bonds connect the portfolio to companies whoseDebtcarries lowerCreditratings than investment grade obligations. Coupon payments are contractual, but receiving them still depends on issuer solvency. Credit spreads reflect the compensation demanded for these risks and can change even when government interest rates are …

Investment grade describes theCreditclassification of the underlying debt. It does not establish that bond prices will remain stable. Corporate bonds also respond to movements in government yields and the additionalYieldinvestorsDemandfor credit exposure. Longer dated cash flows can be particularly sensitive to changes in discount …

US dollar sovereign borrowing places repayment obligations in a currency that may differ from a government's principalRevenuebase. Fiscal strength, external reserves and access to international funding can therefore influence repayment capacity. Countries face different economic circumstances, but their bond prices can still respond together …

The mandate covers large and medium sized companies within the USEquitymarket. Its breadth spansBusinesssectors, but sectorDiversificationand equal weighting are different concepts. A portfolio with many constituents can still give substantial influence to its largest exposures. Examining the sector mix helps show whether the fund's …

The growth mandate focuses on companies selected usingBusinessgrowth measures, includingEarningsand sales characteristics. That selection can create a portfolio with different industry weights from the wider market. Growth expectations also matter to valuations because investors assess cash flows that may lie further in the future. …

The value mandate selects stocks using measures related to earnings, book value, sales,Cash Flowand dividends. These measures compareBusinessfundamentals with market prices, rather than establishing a guaranteed fair value. A company can appear inexpensive because its prospects are uncertain or itsEarningsare under pressure. Sector weights …

A dedicated mid cap mandate focuses on a distinct segment of the US listed company universe. These businesses can have different financing needs and competitive positions from the largest companies, while spanning a broad range of industries. The portfolio's sector mix gives the size …