Six Circles Tax Aware Bond Fund (CBTAX)

Overview

This fund is designed for investors looking to participate in equity markets with a focus on securities that exhibit the economic characteristics of equities. Not exclusively tied to any single geographical area, the fund broadens its investment horizon by considering opportunities beyond domestic equities, including emerging markets and developing countries. Despite its global scope, it emphasizes the inclusion of instruments and securities that are either denominated in U.S. dollars or are accessible through U.S. dollar-denominated instruments, such as American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs). It operates with the flexibility to invest a significant portion of its assets in these financial instruments, supported by the capacity to engage in borrowing to pursue its investment objectives. However, it is important to note that the fund is classified as non-diversified, which may imply a concentration of investments in fewer issuers than a diversified fund, potentially leading to greater volatility.

Products and Services

• Equity Securities:

  Investments primarily involve purchasing stocks or equity investments in companies. These can range from large, established companies to smaller, growth-oriented firms. By holding these securities, investors gain a share of ownership in these companies, with the potential for capital appreciation and dividends.

• Emerging Markets Investments:

  Part of the fund’s assets may be dedicated to investments in emerging markets and developing countries. These investments offer the potential for higher growth compared to developed markets but come with increased risk factors, including political instability, less regulatory oversight, and currency fluctuations.

• U.S. Dollar-Denominated Securities Issued by Foreign Entities:

  The fund may invest in securities issued by foreign corporations but denominated in U.S. dollars. This approach can provide exposure to foreign markets while mitigating currency risk, as the investments are made in dollars rather than in the local currencies of the issuing companies.

• American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs):

  ADRs and GDRs are types of securities that represent a specified number of shares in a foreign company and are traded on U.S. and global stock markets, respectively. These instruments allow investors to invest in foreign companies with the added convenience of transactions carried out in U.S. dollars, providing a way to access international markets without dealing with the complexities of foreign currencies and regulations.