Cavanal Hill Bond Fund Class A (AABOX)

Overview

The fund is designed to be a comprehensive investment vehicle targeting investors looking to diversify their portfolios with fixed-income assets. With a focus on investing at least 80% of its net assets in bonds, the fund caters to those seeking steady income through exposure to a blend of debt obligations. It places a significant emphasis on investments in various securities issued by U.S. entities, including corporations, government agencies, and municipalities, as well as specialized debt instruments like mortgage-backed and asset-backed securities.

Products and Services

• Corporate Bonds - Debt securities issued by U.S. corporations to finance their operations, expansions, or other projects. These bonds are a key component of the fund's portfolio, providing investors with the opportunity to earn interest income from private sector investments.
• Government and Agency Debt - Includes bonds, notes, and debentures issued by the U.S. government or its agencies and instrumentalities. This category offers a relatively secure investment option, backed by the credit of the U.S. government, and forms a foundational part of the fund's investment strategy.
• Municipal Securities - Bonds issued by states, cities, counties, and other governmental entities to fund public projects. These securities can offer tax-exempt interest, making them an attractive option for certain investors within the fund.
• Mortgage-Backed Securities (MBS) and Asset-Backed Securities (ABS) - These are bonds backed by mortgage loans and other assets, respectively. They provide the fund with income streams generated from the underlying loans, adding both yield and diversification to the investment mix.
• Collateralized Mortgage Obligations (CMOs) - A type of mortgage-backed security that pools mortgages and divides them into different tranches, each with its own level of risk and return. This allows the fund to invest according to its risk appetite and return expectations.
• Fixed Income ETFs - Exchange-traded funds that invest in bonds and other debt instruments, offering the fund the advantage of liquidity and diversification across a broad range of fixed-income securities through a single investment.
• Money Market Instruments - Short-term debt securities such as treasury bills and commercial paper. These provide the fund with liquidity and a safe place to park cash, ensuring stability and security for its investors.