Johnson Institutional Intermediate Bond Fund Class F (JIMEX)

Overview

The fund represents an investment vehicle focused on diversifying its portfolio through a wide array of investment-grade fixed income securities. It commits at least 80% of its net assets, in addition to any leverage employed, towards acquiring a broad spectrum of fixed income instruments. These instruments encompass a diverse range, from bonds and notes to a variety of securities, including those issued by domestic and international corporations, governmental bodies, government agencies, and other entities involved in mortgage and asset backing. A distinctive feature of this fund is its flexibility in terms of the maturity range of the securities it invests in, though it typically aims to maintain a dollar-weighted average duration of three to five years. This strategy indicates a moderate risk tolerance, balancing between interest rate risk and the desire for stable returns.

Products and Services

Here is a closer look at the variety of investment grade fixed income securities the fund focuses on:

• Bonds and Notes: These are debt securities issued by corporations or governments, representing a loan made by the investor to the issuer. The fund invests in these as they typically offer regular income through interest payments, along with principal repayment upon maturity.
• Domestic and Foreign Corporate and Government Securities: This encompasses a wide range of debt issued by domestic and foreign entities. Investing in these allows the fund to gain exposure to different economic environments and interest rate landscapes, diversifying its risk.
• Government Agency Securities: Securities issued or guaranteed by government agencies. These are favored for their high credit quality and the backing they receive, making them a relatively safer investment option.
• Mortgage-Backed Securities (MBS), Collateralized Mortgage Obligations (CMO): These are types of asset-backed securities that are secured by a collection of mortgages. The fund includes these in its portfolio to gain exposure to the residential and commercial mortgage markets, which can offer higher yields than government securities.
• Asset-Backed Securities: Similar to MBS and CMO, these securities are backed by a pool of assets, typically excluding mortgages. The diversification of backing assets can include loans, leases, or receivables, offering additional avenues for income and risk management.
• Municipal Securities: Debt securities issued by states, cities, or other governmental entities to finance public projects. These can be attractive due to potential tax advantages and are included for their favorable risk-return profile.
• Short-Term Obligations: This includes instruments like commercial paper or short-term government securities. They offer a means for the fund to manage its liquidity needs efficiently while still earning a return on its cash holdings.