SanJac Alpha Core Plus Bond Fund (SJCP)

Overview

SJCP is an investment fund that focuses on generating income through a diversified portfolio of fixed-income securities. The fund primarily targets investment-grade US corporate and government bonds with a variety of maturities but also includes a mix of mortgage-backed securities (MBS), Real Estate Investment Trusts (REITs), Collateralized Loan Obligations (CLOs), Collateralized Mortgage Obligations (CMOs), municipal securities, and preferred stocks. It employs a comprehensive investment strategy that combines top-down macroeconomic analysis with bottom-up security selection, aiming to achieve a balance between returns and interest rate sensitivity. This approach is geared towards optimizing performance while also preserving capital and minimizing volatility. While the focal point of its investment strategy lies in investment-grade securities, SJCP also allows for a portion of its portfolio to be allocated towards higher-risk investments, such as junk bonds and unrated debt, to potentially enhance yields. The fund typically maintains an average portfolio duration of up to ten years, aligning its investment horizon with its strategic goals.

Products and Services

• Investment-Grade US Corporate and Government Bonds

SJCP invests in a broad spectrum of investment-grade bonds issued by US corporations and government entities. These bonds are selected based on their credit quality and yield potential, aiming to provide a stable income stream while preserving capital.

• Mortgage-Backed Securities (MBS) and Real Estate Investment Trusts (REITs)

The fund includes investments in MBS and REITs to diversify its portfolio and capitalize on the real estate market's potential for income and growth. These securities offer the possibility of higher yields compared to traditional government and corporate bonds.

• Collateralized Loan Obligations (CLOs) and Collateralized Mortgage Obligations (CMOs)

SJCP incorporates CLOs and CMOs into its investment strategy to further diversify its portfolio and enhance return potential. These complex financial instruments are selected based on stringent criteria to manage risk and yield.

• Municipal Securities

Investing in municipal securities allows the fund to achieve tax-efficient income while contributing to public infrastructure and services. These investments are chosen for their credit quality, yield potential, and tax advantages.

• Preferred Stocks

Preferred stocks complement the fund's bond investments, offering potentially higher yields and different risk-return profiles. These securities are selected to provide additional income and diversification.

• High-Risk Securities Allocation

Up to 5% of SJCP's portfolio may be allocated to higher-risk securities, such as junk bonds and unrated debt. This portion of the portfolio aims to enhance overall returns while being managed to limit impact on the fund's overall risk profile.