Overall, the Fund experienced a positive quarter with a total return of 0.28%, versus a return of 0.07% for the benchmark. We continue to emphasize a diversified selection of fixed- and floating-rate investment-grade corporate bonds, supplemented by asset-backed issues and callable U.S. government securities.
The second quarter promises to revisit political questions that impact risk assets, notably the still unresolved domestic spending issues and the looming debt ceiling deadline, which has been pushed back to mid-May. While we anticipate market volatility, we also expect investor appetite for yield to continue unabated. With the overlay of the Feds "lower-for-longer" policy on interest rates, we have maintained a duration longer than our one-year neutral target to take advantage of the slope of the yield curve in the current fixed-income environment.
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, which has a $250,000 initial investment minimum, 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 yield more than a money market fund with potential for capital appreciation.
- Strive to maintain a 6-18 month average maturity, under normal circumstances, with a maximum security maturity of three years.
- Manage Fund in an effort to have an average portfolio quality of A or better, with all securities to be investment grade.