Leader Short Term High Yield Bond Fund Institutional Class (LCCIX)

Overview

This company is focused on providing investors with exposure to high-yield, non-investment grade bonds. Specifically, it dedicates at least 80% of its net assets to bonds that are rated below the investment-grade cutoff by major rating agencies such as Moody’s Investors Service (below Baa3), Standard & Poor’s Ratings Group, and Fitch (below BBB-). The company also includes in its portfolio bonds that are not rated by these agencies but are deemed by the Advisor to be of comparable quality to the specified ratings. The investment strategy emphasizes maintaining a portfolio with an effective average duration of three years or less, aiming to manage interest rate risk while seeking higher returns typically associated with non-investment grade bonds.

Products and Services

• High-Yield Bond Investments

  The primary service offered by the company is an investment fund that focuses on high-yield bonds, also known as junk bonds. These are bonds rated below investment grade, indicating higher risk but also offering the potential for higher returns compared to investment-grade bonds. The fund targets non-investment grade bonds with ratings lower than Baa3 by Moody's, BBB- by Standard & Poor's, and Fitch, or bonds of equivalent quality as assessed by the Advisor. This approach seeks to capitalize on the higher income potential of high-yield bonds while carefully managing the associated risks.

• Short Duration Portfolio Management

  In addition to focusing on high-yield bonds, the company employs a strategy of keeping the effective average duration of its portfolio investments at three years or less. Duration is a measure of the sensitivity of bond prices to changes in interest rates, with shorter durations generally implying less sensitivity. By maintaining a portfolio of bonds with shorter durations, the fund aims to mitigate the impact of rising interest rates on the value of its investments, consequently aiming to protect investors’ capital while still seeking to achieve higher yields.