Medalist Partners MBS Total Return Fund – Institutional Class (SEMMX)

Overview

The company in question is a fund that concentrates its investments in mortgage-backed securities (MBS). It is designed for investors looking for exposure to the MBS market, adhering to a strategy where at least 80% of its net assets, plus any borrowings meant for investment purposes, are allocated towards MBS. This investment approach is tailored to navigate the complexities of the mortgage-backed securities market, aiming to capitalize on the potential benefits these types of securities may offer. The fund's investment portfolio is managed with a weighted average maturity spectrum, generally ranging between 1 and 10 years, providing a balanced exposure to various maturity horizons within the MBS space. Furthermore, the fund exhibits a high degree of flexibility in its investment choices, including the ability to invest without any limitations in MBS that hold below investment grade ratings, often referred to as "high yield" or "junk" securities. This strategy indicates a willingness to embrace higher risk for the potential of higher returns, typical of funds that engage in high-yield debt instruments.

Products and Services

• Mortgage-Backed Securities Investment - The fund specializes in investing primarily in mortgage-backed securities, providing investors with an opportunity to gain exposure to the real estate market indirectly through securitized mortgage assets. This investment vehicle targets securities with varying maturity profiles, mainly concentrating on those with 1 to 10 years to maturity, allowing for a diversified spread of interest rate risk and repayment timelines.
• High-Yield MBS Investments - Apart from traditional MBS investments, the fund also offers investment opportunities in high-yield MBS, which are rated below investment grade. This option caters to investors with a higher risk tolerance, seeking potentially higher returns from investments classified as "junk" due to their riskier nature compared to investment-grade securities. The fund's strategy of including high-yield MBS in its portfolio leverages the potential upside of investing in lower-rated securities, albeit with an increased exposure to credit risk and volatility.