Bridge Builder Small/Mid Cap Growth Fund (BBGSX)

Overview

This fund focuses on the fixed income market, deploying at least 80% of its net assets—including borrowed amounts for investment purposes—towards fixed income securities and similar instruments. It operates under normal market conditions, leveraging derivatives and certain investment companies to achieve its investment objectives. The fund aims to provide investors with exposure to the fixed income universe through a diversified and carefully selected portfolio of securities and other financial instruments.

Products and Services

• Fixed Income Securities

  These are debt securities issued by corporations, municipalities, or governments to finance their operations. They include bonds, debentures, notes, and money market instruments. The fund predominantly invests in these instruments to generate returns for investors, relying on interest payments and the potential appreciation of these securities.

• Derivatives

  Derivatives are financial contracts whose value is derived from the performance of an underlying asset or index. The fund uses derivatives, including futures and swaps, as a means to hedge against potential losses, speculate on future movements of interest rates, and enhance returns. This includes interest rate futures, used to speculate on or hedge against changes in interest rates, and interest rate swaps, which are agreements to exchange future interest payment obligations.

• Investment in Futures

  The fund invests in futures contracts, particularly those related to interest rates and U.S. Treasury securities. Futures are standardized contracts to buy or sell a specific asset at a predetermined price at a specified future date. This strategy can help in hedging against market volatility and in speculating on future price movements of these instruments.

• Investment in Swaps

  In addition to interest rate swaps, the fund may engage in other types of swap contracts to further its investment objectives. Swaps are derivative contracts through which two parties exchange financial instruments or cash flows based on a predetermined formula. These instruments can provide the fund with flexibility in managing exposure to various risks and opportunities in the fixed income markets.