VELA Short Duration Fund - Class A (VASDX)

Overview

This fund primarily focuses on investing in fixed income securities, with a strong emphasis on those that offer stability across various industries, geographies, and company sizes. By allocating at least 80% of its assets into fixed income vehicles, the fund aims to maintain a diversified investment portfolio that can weather market fluctuations. Its strategy includes a significant lean towards corporate bonds from U.S. domiciled companies, alongside a blend of other securities and instruments to ensure a broad coverage of the fixed income spectrum.

Products and Services

• Corporate Bonds

  Primarily involves investment in corporate bonds issued by U.S. domiciled companies, providing the fund with steady income through interest payments. These bonds cover a range of industries and market capitalizations, offering a diversified exposure to different sectors of the U.S. economy.

• Government Securities

  The fund includes securities issued or guaranteed by the U.S. government, its agencies, or government-sponsored enterprises. This may encompass Treasury bonds, bills, and notes, which are considered low-risk investments and contribute to the fund's stability and liquidity.

• Money Market Instruments

  Investments in money market instruments are part of the fund's strategy to ensure liquidity and manage the fund's cash flow effectively. These instruments include short-term debt securities like commercial paper and certificates of deposit, offering a safe haven during volatile market conditions.

• Mortgage-Backed and Asset-Backed Securities

  The fund allocates portions of its portfolio to mortgage-backed securities (MBS) and asset-backed securities (ABS), providing exposure to the real estate and credit markets respectively. These investments can offer higher yields compared to government securities, with a moderate level of risk.

• Loans

  Investing in loans, particularly those that are secured and offer a fixed return, forms part of the fund's income-generating activities. This could include syndicated bank loans, which are typically senior in the payment hierarchy and offer interest earnings above traditional fixed income securities.

• Non-rated Securities

  The inclusion of non-rated securities allows the fund to reach into markets and sectors that may offer higher yields in exchange for potential higher risk. These securities are not rated by major credit rating agencies, offering a balance between risk and reward within the fund’s portfolio.