Investors want income. And many also want to create impact with their investment dollars.
| ARCA Exchange | US Country |
The fund is focused on investing primarily in Mortgage-Backed Securities (MBS) that are issued and/or guaranteed by government-sponsored enterprises (GSEs). Key GSEs in this regard include the Government National Mortgage Association (Ginnie Mae), the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac). These institutions play a crucial role in the United States housing finance system by providing liquidity, stability, and affordability to the mortgage market. The fund's investment strategy is geared towards securities that not only promise returns but also meet strict investment grade criteria, ensuring a focus on financial stability and creditworthiness.
The fund's primary investment focus is on MBS that are not just issued but also guaranteed by key government-sponsored enterprises such as Ginnie Mae, Fannie Mae, and Freddie Mac. This approach leverages the stability and reliability offered by these institutions, aiming to secure steady returns for investors by engaging in securities that are backed by the U.S. government or its sponsored entities.
Emphasizing security and quality, the fund invests only in securities that are rated as investment grade, specifically those rated Baa3/BBB- or higher. The rating threshold ensures that investments are made in securities that possess a low to moderate credit risk, enhancing the fund’s focus on preserving capital and achieving reliable income. For securities that are unrated, a rigorous evaluation is conducted by the Sub-Adviser to ascertain their credit quality, ensuring they align with the fund’s commitment to investment grade standards.