Old Westbury Short-Term Bond Fund (OWSBX)

Overview

The fund is designed for investors seeking a diversified portfolio primarily focused on short- and intermediate-term, investment-grade bonds and notes. Targeting a strategy that emphasizes investment-grade fixed income securities, the fund commits at least 80% of its net assets, plus any borrowings for investment purposes, to this class of assets. The portfolio includes a broad range of fixed income vehicles such as sovereign, corporate, and asset-backed securities, alongside money market instruments, bank obligations, foreign securities, and U.S. government securities. This broad spectrum of fixed income investments positions the fund as a suitable option for investors aiming to balance risk while seeking returns from various sectors of the bond market.

Products and Services

• Investment-Grade Bonds and Notes

  The fund specializes in short- to intermediate-term investment-grade bonds and notes, offering investors a relatively safe investment option that aims to generate returns while preserving capital. These securities are issued by entities that are considered to have a lower risk of default, making them an attractive choice for conservative investors.

• Sovereign Securities

  Investments in sovereign securities involve bonds and notes issued by governments. These securities are considered to be among the safest investments, as they are backed by the issuing government's ability to levy taxes and to print money. They are an essential part of the fund's strategy to reduce risk and provide stability.

• Corporate Securities

  The inclusion of corporate securities means the fund invests in debt issued by corporations. While slightly riskier than sovereign securities, they typically offer higher yields. These investments can provide a good balance between risk and return, contributing to the fund's performance.

• Asset-Backed Securities

  Asset-backed securities represent investments secured by a pool of assets, such as loans, leases, credit card debt, royalties, or receivables. These securities offer diversification benefits and are part of the fund's strategy to allocate assets across different sectors and reduce risk.

• Money Market Securities

  Money market securities are short-term debt instruments, often with maturities of one year or less. These can include treasury bills, commercial paper, or certificates of deposit. They offer liquidity and safety, serving as an effective tool for managing the fund's cash position and ensuring capital preservation.

• Bank Obligations

  Investing in bank obligations, such as certificates of deposit (CDs) issued by banks, adds another layer of diversification. These instruments typically offer fixed returns over a specified term, contributing to the fund’s income generation capabilities while maintaining a conservative risk profile.

• Foreign Securities

  The fund's engagement in foreign securities opens up opportunities in international markets, potentially offering higher yields than domestic securities. Investing in foreign bonds introduces currency and country risk, but it also provides additional diversification and the prospect for enhanced returns.

• U.S. Government Securities

  U.S. government securities, such as Treasury bonds and notes, are cornerstone investments for the fund, providing a high degree of safety and liquidity. These instruments are backed by the full faith and credit of the U.S. government, making them among the safest investment options available.