CM Advisors Fixed Income Fund (CMFIX)

Overview

The investment strategy is primarily focused on identifying and investing in U.S. dollar denominated fixed income securities that are deemed to be undervalued by the Advisor. This strategy pursues opportunities across a broad spectrum of fixed income securities, including but not limited to corporate bonds, U.S. government securities, and mortgage-backed securities. The fund maintains a strong commitment to fixed income investments, with at least 80% of its net assets, including any borrowings for investment purposes, engaged in fixed income securities or shares of other Regulated Investment Companies (RICs) that predominantly invest in fixed income securities. This approach enables the fund to target potentially higher returns by capitalizing on undervalued securities while aiming to maintain a balanced and diversified fixed income portfolio.

Products and Services

• Corporate Bonds

  These are debt securities issued by corporations to fund their operational, expansion, or project needs. Investing in corporate bonds can offer the fund an opportunity to earn interest income and benefit from potential capital appreciation if the bonds increase in value.

• U.S. Government Securities

  These securities are backed by the full faith and credit of the United States government, making them one of the safest investment choices. They include Treasury bonds, bills, and notes. The fund considers these securities as a stabilizing component in its portfolio, contributing to risk management and diversification.

• Mortgage-Backed Securities (MBS)

  Mortgage-backed securities are types of asset-backed securities that are secured by a mortgage or collection of mortgages. These bonds are typically grouped by the type of mortgage or governmental agency that guarantees them. Investing in MBS allows the fund to engage in the real estate sector indirectly, with the added security of a tangible asset as collateral.

• Regulated Investment Companies (RICs) Fixed Income Investments

  By investing in shares of other RICs that focus on fixed income securities, the fund can diversify its investment portfolio across various sectors, credit quality, and maturities. This method helps in spreading the investment risks and tapping into the expertise of other investment management teams within the realm of fixed income securities.