Empower Core Strategies Flexible Bond Fund Investor Class (MXEWX)

Overview

The fund referenced in the description operates as an investment fund that specializes in fixed income securities. Its investment strategy emphasizes diversification across various types of fixed income instruments, committing to invest at least 80% of its net assets, along with borrowed funds for investment purposes, in a broad range of fixed income securities. This includes instruments with varying maturities and durations, catering to investors seeking exposure to the fixed income market. The fund's approach integrates a mix of corporate bonds, government securities, and other debt instruments, targeting a balance between risk and return for its investors.

Products and Services

• Corporate Bonds

  These are debt securities issued by corporations to fund their business operations, expansion, or other needs. Corporate bonds typically offer higher yields compared to government bonds, albeit with a higher risk, as they depend on the issuer's creditworthiness.

• U.S. Government Securities

  These include a variety of debt instruments issued by the United States government, such as Treasury bonds, notes, and bills. U.S. government securities are considered among the safest investments since they're backed by the full faith and credit of the U.S. government, offering a lower yield in exchange for lower risk.

• Mortgage- and Asset-backed Securities

  These securities are backed by mortgage loans or other financial assets. Essentially, they represent claims to the cash flows from pools of mortgage loans or other assets. Mortgage- and asset-backed securities can offer higher yields but come with the risk of prepayments and defaults by the underlying borrowers.

• Bank Loans

  This refers to investments in loans that banks and other financial institutions make to companies. These are often senior secured debts, meaning they have a priority claim on the borrower’s assets in case of default. Bank loans often adjust for interest rate changes, which can protect investors against rate hikes but introduce credit risk.