First Foundation Fixed Income Fund Class A (FFBAX)

Overview

The fund is designed to cater to investors looking for an investment option that prioritizes investment-grade debt securities. It aims to allocate at least 80% of its net assets towards debt securities under normal conditions, highlighting a conservative investment approach with a focus on stability and reliability. This indicates a strategy that is inclined towards minimizing risk by investing in securities that are considered to be of high credit quality. The fund's investment philosophy underscores a diversified portfolio approach, aiming to balance risk and return by spreading investments across different types of debt instruments. The target maturity range of five to ten years for the average weighted maturity of the portfolio suggests a medium-term investment horizon, providing a blend of income generation and potential for moderate capital appreciation.

Products and Services

• Mortgage-Backed Securities:

  Investments in mortgage-backed securities offer exposure to the residential and commercial mortgage markets. These securities are backed by mortgage payments, providing regular income to investors. This asset class can offer a favorable risk-return profile, depending on the underlying credit quality of the mortgages.

• Corporate Bonds:

  The fund invests in corporate bonds, which are debt securities issued by corporations. These investments provide a way for investors to lend money to companies in exchange for periodic interest payments and the return of principal at maturity. Corporate bonds typically offer higher yields than government securities, reflecting the higher risk.

• U.S. Government Securities:

  U.S. government securities are considered among the safest investments, backed by the full faith and credit of the U.S. government. These include Treasury bills, notes, and bonds, offering a secure income stream and preservation of capital. The fund's investment in these securities adds a layer of security and stability to the portfolio.

• Investment-Grade Municipal Obligations:

  Investment-grade municipal obligations refer to debt instruments issued by municipalities that are rated at the higher end of the credit spectrum. These can include bonds issued to finance public projects. They often provide tax-exempt interest income, making them appealing for investors seeking tax-advantaged income.

• Money Market Instruments:

  The inclusion of money market instruments in the fund's portfolio provides liquidity and safety. These short-term debt securities, such as Treasury bills and commercial paper, offer a secure place to invest cash that needs to be readily accessible, typically providing lower returns in exchange for lower risk.