The Core Plus Fixed Income Product seeks to maximize total return, minimize risk, and preserve capital utilizing all sectors of the fixed income market. Core Plus portfolios are well diversified, and consist of high quality investment grade, high yield, and non-dollar securities, with an average portfolio duration of three to six years.
|Average Duration||5.7 Years||6.0 Years|
|Average Maturity||7.3 Years||8.2 Years|
|Yield to Maturity||2.2%||2.6%|
As of March 31, 2017
|Gov't Related||< 1%||7%|
|Cash & Equivalents||1%||0%|
|1 Yr.||3 Yrs.||5 Yrs.||10 Yrs.||Since
|Core Plus (Gross)||1.39%||2.66%||3.03%||5.92%||10.22%|
|Core Plus (Net)||1.22%||2.48%||2.85%||5.74%||N/A*|
|Barclays U.S. Aggregate||0.44%||2.68%||2.34%||4.27%||7.98%|
*Fees not entered into accounting system prior to 1994
The Annual Disclosure Report is an integral part of this presentation and is available for download in Adobe Portable Document Format (PDF) by clicking here. PDFs are viewed using Adobe Acrobat Reader.
Past performance is no guarantee of future results. Performance figures are in U.S. Dollars and assume reinvested income for the entire period. Performance figures stated gross of fees do not reflect the deduction of management fees. Performance results of clients would be reduced by the firm’s management fees. For example, an account with a compounded annual total return of 10% would have increased by 159% over ten years. Assuming an annual management fee of .30%, this increase would be 152%. The firm’s management fees are detailed in its Form ADV Part 2. All investments involve risk, including the possible loss of principal.
On November 30, 2010, Scout Investment Advisors, Inc. acquired the advisory business of Reams Asset Management Company, LLC. The performance provided prior to this date is based upon the Core Plus Fixed Income Composite managed by Reams Asset Management Company, LLC. The portfolio managers and the investment objectives remain the same.
On December 28, 2010, the firm changed its name from Scout Investment Advisors to Scout Investments. Reams Asset Management is a division of Scout Investments, Inc., a registered investment advisor that offers investment management services for both managed accounts and mutual funds. Scout Investments is a wholly owned subsidiary of UMB Financial Corporation. Employees of Scout Distributors receive referral fees and compensation for soliciting clients on behalf of Scout Investments, including the Reams Asset Management Division. Scout Investments claims compliance with the Global Investment Performance Standards (GIPS®).
The Core Plus Fixed Income Composite invests primarily in investment grade securities with investments in high-yield securities and foreign securities, while maintaining an average portfolio duration of generally between two and one half to six years. The Core Plus Fixed Income Composite may invest in derivatives, including credit default swaps and related instruments, such as credit default swap index products. These derivative securities may be used to enhance returns, increase liquidity and/or gain exposure to certain instruments in the market (such as the corporate bond market) in a more efficient or less expensive way. The Composite may also invest in currency forwards to hedge currency exposure when Reams chooses to establish positions in non-U.S Dollar bonds. Derivatives used are strictly constrained by client investment policy. The Barclays U.S. Aggregate Bond Index is an unmanaged, market-value-weighted index of taxable investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage backed securities, with maturities of one year or more.
The bond quality ratings indicated are assigned by credit rating agencies Standard & Poor’s, Moody’s, and Fitch as an indication of an issuer’s creditworthiness. Unless specified by client investment guidelines, the middle of three or highest of two credit quality ratings available from these rating agencies is used. Credit quality is subject to change. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). Ratings information from Standard & Poor's (“S&P”) may not be reproduced. S&P credit ratings are statements of opinion and are not statements of fact or recommendations to purchase, hold, or sell securities, nor do they address the suitability of securities for investment purposes, and should not be relied on as investment advice. S&P does not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and is not responsible for errors or omissions (negligent or otherwise). S&P gives no express or implied warranties, including but not limited to any warranties of merchantability or fitness for a particular purpose or use. S&P shall not be liable for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or profits and opportunity costs) in connection with any use of ratings.
NOT FDIC INSURED/ NO BANK GUARANTEE/ MAY LOSE VALUE