Frost Credit Fund Investor Class (FCFAX)

Overview

The fund described focuses on a broad spectrum of fixed income investments, primarily targeting corporate issuers both domestically within the United States and abroad. It dedicates at least 80% of its net assets, along with any funds borrowed for investment purposes, towards acquiring a variety of fixed income securities. This includes a strategic mix of corporate bonds, collateralized loan obligations (CLOs), mortgage-backed securities (MBS), asset-backed securities (ABS), and structured notes that are economically equivalent to fixed income securities. The fund is designed to cater to investors looking for exposure to callable bonds and various types of fixed income securities that offer a diverse range of payment structures, including fixed or floating interest rates, interest payable in-kind, or interest that is payable upon maturity.

Products and Services

• Corporate Bonds:

Debt securities issued by corporations to finance their operations, expansion, and projects. Corporate bonds are a central aspect of the fund’s portfolio, offering investors a way to earn interest income over time.

• Collateralized Loan Obligations (CLOs):

Structured financial instruments backed by a pool of loans. These are typically secured by a variety of commercial loans with varying degrees of credit quality, providing diversified exposure to the corporate loan market.

• Mortgage-Backed Securities (MBS):

Securities backed by mortgage loans. These include both residential and commercial mortgages, offering investors an interest in the payment streams from these mortgages.

• Asset-Backed Securities (ABS):

Financial securities collateralized by a pool of assets, such as loans, leases, credit card debt, royalties, or receivables. ABS provide investors with income generated from these underlying assets.

• Structured Notes:

Debt securities issued by banks that include embedded derivatives designed to provide tailored risk-return objectives. These notes are structured to have economic characteristics similar to fixed income securities, fitting well within the fund's investment focus.

• Callable Bonds:

Bonds that can be redeemed by the issuer before their maturity date at a predefined call price. This allows the fund to potentially capitalize on certain market conditions and interest rate movements.

• Fixed and Floating Rate Securities:

Includes bonds and other types of fixed income securities that pay either a fixed interest rate over the life of the security or a floating rate that adjusts periodically based on a reference rate. This diversity allows investors to benefit from different interest rate environments.

• Interest Payable in-Kind or at Maturity:

Securities that offer alternative interest payment methods, such as paying interest in additional securities rather than cash (in-kind) or deferring interest payments until maturity. This offers flexibility in how returns are distributed to investors.