Leader Short Term High Yield Bond Fund Investor Class (LCCMX)

Overview

The provided company description outlines a fund that focuses on investing a significant portion of its assets in bonds considered below investment grade. These are referred to as high-yield or junk bonds, characterized by higher risk compared to investment-grade bonds but offering potentially higher returns. The fund targets bonds rated lower than Baa3 by Moody's and BBB- by both Standard & Poor’s and Fitch, which places them below the threshold for what is considered investment-grade credit quality. For bonds that are not rated, the fund's advisor has the discretion to determine their quality, ensuring they align with the fund's investment strategy. Additionally, the fund aims to maintain an effective average duration of its portfolio investments at three years or less, indicating a moderate sensitivity to interest rate changes and a focus on short-term bonds.

Products and Services

• Non-Investment Grade Bond Investments

  This product focuses on bonds that are rated lower than Baa3/BBB- or unrated, determined by the advisor to be of comparable quality to the specified ratings. These bonds typically offer higher yields than investment-grade bonds due to the increased risk of default. This offering caters to investors looking for higher potential returns who are willing to accept the higher risk associated with these bonds. By investing in these securities, the fund seeks to profit from the higher interest income and potential price appreciation of these lower-rated bonds.

• Short-Term Investment Strategy

  The service involves managing the fund's portfolio to maintain an effective average duration of three years or less. This strategy is aimed at reducing the fund's sensitivity to changes in interest rates, as bonds with shorter durations are generally less affected by rate movements than longer-term securities. This approach may be attractive to investors seeking lower interest rate risk and more predictable returns over a shorter investment horizon. The shorter average duration also allows for greater flexibility in responding to changes in the market or in credit quality.