The Fund posted a return of 0.19% in the fourth quarter, outperforming its benchmark. The Funds one-year total return of 0.75% also outperformed the benchmark.
The Funds strategy continues to be to maintain duration near one year, primarily by holding fixed-rate two- and three-year municipal bonds balanced by a position in very short-term municipal floating-rate notes. Taxable corporate bonds are also utilized when the return net of tax exceeds the return on tax-free municipal bonds. Taxable bonds made up approximately 35% of the portfolio in the fourth quarter.
If you're seeking an investment that may generate higher yields than money market funds with less volatility than short duration bond funds, this Fund may be appropriate for you. The Fund is intended for investors with an investment horizon of at least one year who are seeking to move a portion of their money market fund assets.
The Fund is not a money market fund, which maintains a $1.00 NAV, and the Fund's share price will fluctuate with its returns.
- Seek to provide investors in higher tax brackets more after-tax yield than a money market fund with potential for capital appreciation.
- Strive to maximize after-tax return by pursuing best net after-tax yield and total return opportunities in both taxable and tax-exempt securities.
- Strive to maintain a 6-18 month average maturity, under normal circumstances, with a maximum security maturity of three years. Also manage Fund in an effort to have an average portfolio quality of A or better, with all securities to be investment grade.