Sound Enhanced Fixed Income Fund (FXED)

Overview

The investment fund focuses on allocating its assets primarily in fixed income securities, adhering to a strategy that under normal market conditions, at least 80% of its net assets are invested in this category. This inclination towards fixed income securities is supported by a portfolio that encompasses a wide range of instruments including U.S. corporate bonds, preferred stock, and Exchange-Traded Funds (ETFs) that invest in bonds. The fund's approach emphasizes a broad geographic reach and diversification in terms of the types of fixed income securities, engaging in investments across both U.S. and foreign corporations, government securities, and even supranational organizations. Despite this wide-ranging investment philosophy, the fund identifies as non-diversified, implying a focused yet strategic selection of investments.

Products and Services

• U.S. Corporate Bonds

  These are debt securities issued by corporations in the United States. The fund invests in these bonds as they typically offer higher yields compared to government bonds, albeit with a higher risk, aiming to capitalize on the financial health and stability of U.S. corporations.

• Preferred Stock

  An investment in preferred stocks is characterized by a higher claim on assets and earnings than common stock. Preferred stocks usually offer dividends, and the fund incorporates these securities to possibly attain steady income streams with a degree of stability.

• ETFs that Invest in Bonds

  These ETFs provide a way to invest in a diversified portfolio of bond securities through a single investment. The fund invests in bond ETFs to gain exposure to a spectrum of bond markets, including government, corporate, and international bonds, enhancing diversification while managing risk.

• Sovereign Debt

  These are bonds issued by national governments. The fund includes sovereign debt in its portfolio to diversify and hedge against the volatility of corporate securities, often using these instruments to gain exposure to foreign markets and economies.

• Private Placement Debt Securities

  Private placements are debt securities issued in private transactions rather than through a public offering. This type of investment allows the fund to gain exposure to unique opportunities not available on public exchanges, potentially capturing higher returns.

• Securities Issued by Governments and Agencies

  The fund invests in a range of government and agency securities, including those issued by U.S. entities, foreign governments, and their respective agencies or sponsored corporations. These investments provide a layer of security and income, backed by governmental entities.

• Supranational Organizations

  Investments in securities issued by supranational organizations (like the World Bank or the European Investment Bank) offer the fund an opportunity to partake in globally diversified and inherently stable assets, contributing to risk management and income diversification.