X-Square Balanced Fund, LLC Class A (SQBFX)

Overview

The fund is designed to offer investors a balanced investment approach by allocating its assets across a broad spectrum of securities. This includes a mix of U.S. equity securities and fixed income securities. With a primary focus on achieving a diversified portfolio, the fund targets a 60% allocation in U.S. equity securities which encompasses stocks of various companies, and a 40% allocation in fixed income securities. These fixed income securities comprise investment-grade corporate debt, securities issued by U.S. agencies, and U.S. mortgage-related and other asset-backed securities, alongside related derivatives. Additionally, the fund opens the door to international markets by investing in securities of foreign issuers, providing investors with a global exposure.

Products and Services

• U.S. Equity Securities:

Comprising 60% of the fund’s portfolio, this category focuses on investing in a wide range of common stocks issued by U.S.-based companies. The objective is to tap into the growth potential of American businesses across various sectors.

• Fixed Income Securities:

This aspect of the fund, making up 40% of the portfolio, includes investment in diversifies fixed income instruments. The selection encompasses:

• Investment-Grade Corporate Debt: Debts issued by corporations with a high credit rating, aiming to provide stable returns.
• U.S. Agency Securities: Securities issued or guaranteed by U.S. government agencies or GSEs, offering a balance between safety and yield.
• U.S. Mortgage-Related and Asset-Backed Securities: Investments in securities backed by mortgages or other financial assets, providing regular income through interest payments.
• Related Derivatives:

Derivatives are financial instruments whose value is derived from the performance of underlying assets, indices, or interest rates. The fund utilizes these for various purposes including hedging risk and enhancing returns.

• Securities of Foreign Issuers:

Expanding its portfolio internationally, the fund invests in securities issued by non-U.S. companies. This diversification allows investors to benefit from global market opportunities and potential growth in foreign economies.