Medalist Partners MBS Total Return Fund – Investor Class (SEMPX)

Overview

This investment fund specializes in mortgage-backed securities (MBS), with a strategic focus on deploying at least 80% of its net assets, plus any additional funds borrowed for investment purposes, into this asset class. The fund operates with the flexibility to invest in MBS across the credit spectrum, including those that are rated below investment grade—often referred to as "high yield" or "junk." Its portfolio management strategy emphasizes diversification in the maturity of its MBS investments, generally maintaining a weighted average maturity ranging from 1 to 10 years to manage risk and return.

Products and Services

• Mortgage-Backed Securities (MBS) Investments

  The fund commits at least 80% of its net assets, along with any borrowed funds, to invest in mortgage-backed securities. These are types of investment where the cash flows are backed by the principal and interest payments of a set of mortgage loans. MBS investments can offer regular income and are used to diversify investment portfolios. This fund takes a broad approach by investing in a wide range of MBS, irrespective of their maturity periods or credit ratings.

• High Yield MBS Investments

  A notable aspect of the fund's strategy is its capacity to invest without limit in MBS that carry lower credit ratings, often labeled as high yield or junk. This approach allows the fund to pursue higher returns, albeit with a higher risk, by tapping into the segment of the mortgage-backed securities market that is not investment grade. Such investments can potentially offer higher income compared to standard MBS, appealing to investors seeking greater risk-adjusted returns within their portfolios.