VELA Short Duration Fund - Class I (VESDX)

Overview

The fund is structured to navigate the complexities of the fixed income market by diversifying its investments across a wide range of sectors, geographies, and market capitalizations. With a strong focus on fixed income securities, the fund aims to capitalize on various income-generating opportunities while managing risk effectively. Primarily investing in corporate bonds from U.S. domiciled companies, the fund also explores opportunities in securities backed by the U.S. government, its agencies, or government-sponsored enterprises, alongside other income-generating instruments. This approach offers investors a balanced exposure to the fixed income market with an emphasis on U.S. assets.

Products and Services

The fund's investment strategies encompass a variety of fixed income securities and instruments designed to cater to investors seeking income and diversification. The core offerings include:

• Corporate Bonds of U.S. Domiciled Companies: These are debt securities issued by corporations based in the United States. Investing in these bonds provides the fund with income through interest payments, contributing to its overall yield while offering a moderate level of risk.
• Securities Issued or Guaranteed by the U.S. Government: This category includes Treasury bonds, notes, bills, and other securities issued or guaranteed by the U.S. government. These investments are considered low-risk and provide a stable income stream, contributing to the fund's risk management strategies.
• Securities from Agencies or Government-Sponsored Enterprises: These are bonds and securities issued by entities like Fannie Mae or Freddie Mac. While they carry slightly higher risk than U.S. Treasury securities, they offer higher yields and are an integral part of the fund's diversified investment approach.
• Money Market Instruments: These short-term debt securities include certificates of deposit, commercial paper, and treasury bills. They offer liquidity and safety of capital, making them an essential part of the fund's investment portfolio for managing cash flow and short-term financing needs.
• Mortgage-Backed and Asset-Backed Securities: By investing in these securities, the fund gains exposure to pools of loans, such as mortgages or other financial assets. These investments can offer higher yields than government securities, contributing to the fund's income while introducing controlled levels of risk.
• Loans: Participating in the loans market, the fund may invest in various loan instruments which can provide attractive yields. Investment in loans allows the fund to diversify further and tap into income opportunities not readily available through traditional bond markets.
• Non-Rated Securities: These are fixed income securities that have not been rated by major credit rating agencies. While they pose a higher risk due to the lack of an official rating, they can offer significant returns, contributing to the fund's performance potential in exchange for a higher risk tolerance.