Integrity Short Term Government Fund Class I (MDSIX)

Overview

The fund primarily focuses on investment in securities that are issued or guaranteed by the U.S. government, its agencies or instrumentalities. This includes a significant allocation of its assets towards U.S. government and agency mortgage-backed securities as well as collateralized mortgage obligations (CMOs) that are similarly backed. The strategic goal of the fund is to maintain a portfolio that is highly secure and backed by the credibility of U.S. government securities, targeting investments that under normal market conditions would result in a dollar-weighted average effective duration ranging between one and three years. This investment strategy is designed to provide investors with a level of income and stability, supported by the conservative nature of U.S. government and agency securities.

Products and Services

• U.S. Government and Agency Mortgage-Backed Securities

These are securities backed by mortgage loans that are guaranteed by the U.S. government or its agencies. The fund invests a significant portion of its assets in these securities, benefiting from their high credit quality and potential to offer steady returns. The underlying mortgages are typically from residential properties, and the securities provide periodic payments derived from the mortgage payments of the underlying loans.

• Securities Issued or Guaranteed by the U.S. Government

This category includes treasury bills, notes, bonds, and other securities that are direct obligations of the U.S. government. Such securities carry a high level of safety in terms of credit risk, as they are backed by the full faith and credit of the U.S. government. The fund invests in these to further strengthen its portfolio's stability and provide a reliable income stream.

• Collateralized Mortgage Obligations (CMOs)

CMOs are complex mortgage-backed securities on which the repayments of principal and interest from a pool of mortgages are structured into different classes of securities, with varying levels of risk and returns. The fund invests in CMOs that are backed by U.S. government and agency MBS, seeking to harness the benefits of diversification and risk distribution. These investments are chosen to match the fund’s target duration and risk management strategies, contributing to the overall yield and stability of the portfolio.