Optimum Fixed Income Fund Class C (OCFIX)

Overview

This fund primarily focuses on investing in fixed income securities, adhering to an 80% policy that commits at least 80% of its net assets (along with any borrowing for investment purposes) to such investments. The advisor's strategy emphasizes a diversified portfolio within the fixed income category, including securities issued or guaranteed by the U.S. government or its entities, corporate debt securities, both taxable and tax-exempt municipal securities, as well as mortgage-backed and asset-backed securities. This approach aims to provide investors with a balanced mix of income-generating assets while managing the risks associated with fixed income investments.

Products and Services

• U.S. Government Securities: The fund invests in securities issued or guaranteed by the U.S. government, its agencies, or instrumentalities. This category includes a variety of debt instruments such as Treasury bonds, notes, and bills, which are considered low-risk investments.

These investments offer a reliable source of income with relatively low risk, benefiting from the full faith and credit of the U.S. government. They are suitable for conservative investors looking for stable returns.

• Corporate Debt Securities: The fund includes corporate bonds in its portfolio, which are debt securities issued by corporations. These investments provide a higher yield than government securities, compensating for the higher risk associated with corporate financial health.

Corporate debt securities are aimed at investors seeking higher income through interest payments, accepting moderate levels of risk. The fund's strategy includes diversifying across various sectors to mitigate corporate defaults risks.

• Taxable and Tax-Exempt Municipal Securities: Investments in municipal bonds, which can be either taxable or tax-exempt, offer another layer of diversification. Tax-exempt municipal bonds allow investors to receive income that is not subject to federal income taxes.

This category appeals to tax-sensitive investors, providing them with a strategy to enhance after-tax returns. The fund selects high-quality municipal bonds to balance risk and return, making it suited for moderate investors looking for tax advantages.

• Mortgage-Backed and Asset-Backed Securities: The portfolio is also enriched with mortgage-backed securities (MBS) and asset-backed securities (ABS), which are secured by mortgage loans or other assets.

These securities offer a way to invest in the debt markets indirectly, with risks spread across numerous loans or assets. While they introduce additional complexities, such as prepayment and credit risk, they can offer attractive returns relative to other fixed income options. This portion of the fund is targeted at investors willing to accept these risks for potentially higher income.