Chartwell Short Duration High Yield Fund (CWFIX)

Overview

The fund described invests primarily in high yield debt securities, commonly known as "junk" bonds, which are rated below the Baa3 category at the time of purchase or, if unrated, are determined to be of comparable credit quality by the fund’s sub-adviser. It maintains a focus on these high-risk, high-reward investments by allocating at least 80% of its net assets, in addition to any borrowings for investment purposes, towards them. Additionally, the fund has the flexibility to invest up to 20% of its assets in U.S. dollar-denominated securities of issuers that are based outside of the United States, thereby diversifying its investment portfolio geographically while still focusing on the high yield sector.

Products and Services

• High Yield Debt Securities

High yield debt securities, or "junk" bonds, are the primary focus of the fund. These are investments in bonds rated below the Baa3 category or comparable unrated securities, as determined by the sub-adviser. This investment approach focuses on generating higher returns by accepting a higher level of credit risk, as these securities are perceived to have a higher risk of default compared to higher-rated bonds.

• U.S. Dollar Denominated Securities of Non-U.S. Issuers

As part of its diversification strategy, the fund invests up to 20% of its assets in U.S. dollar-denominated securities of issuers based outside of the United States. This allows the fund to take advantage of global investment opportunities and manage risks through geographical diversity, while still focusing on high yield investments. The inclusion of international securities aims to enhance the potential for returns and mitigate risks associated with investing solely in domestic markets.