Frost Total Return Bond Fund A (FAJEX)

Overview

This company operates as an investment fund focusing primarily on fixed income securities. It dedicates at least 80% of its net assets, along with any borrowings for investment purposes, to this asset class. The fund's advisor actively manages its duration, aiming to keep the average weighted duration of its portfolio within a specific range relative to the fund's benchmark duration. By doing so, it seeks to balance its investments to accommodate various market conditions and interest rate environments. The fund predominantly invests in investment-grade securities but retains the flexibility to invest in securities rated below investment grade, depending on the market scenario and investment opportunities.

Products and Services

• Fixed Income Securities Investment

  The core offering includes investing in a broad array of fixed income securities. By allocating at least 80% of its net assets to this class, the fund targets stability and continuous returns. These investments span government and corporate bonds, mortgage-backed securities, and other debt instruments, focusing primarily on those with investment-grade ratings. However, to adapt to fluctuating market conditions and to seek higher returns, the fund may also selectively invest in below-investment-grade securities.

• Active Duration Management

  To mitigate the impact of interest rate changes on the portfolio, the fund employs active duration management strategies. This involves adjusting the holdings in the portfolio to ensure that the average weighted duration of the fund's investments stays within a predefined range of plus or minus four years of its benchmark's duration. Such active management aims to optimize returns while managing risk, particularly the risk associated with fluctuations in interest rates.