Core

Description

The Core Fixed Income Product seeks to maximize total return, minimize risk, and preserve capital utilizing investment-grade, U.S. dollar denominated fixed income securities. Core portfolios are high quality and well diversified, with an average portfolio duration of generally between three to six years.

Portfolio Highlights

As of March 31, 2017
Reams Barclays Aggregate
Average Duration 5.7 Years 6.0 Years
Average Maturity 7.4 Years 8.2 Years
Yield to Maturity 2.2% 2.6%
Average Quality AA1 AA2

Sector Summary

As of March 31, 2017


Reams Barclays Aggregate
Corporate 19% 25%
Asset Backed < 1% 0%
Cash & Equivalents 2% 0%
Treasury 48% 37%
Mortgage Backed 30% 30%

Performance


Annualized Performance as of March 31, 2017
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. Since
Inception
Core (Gross) 0.09% 2.25% 2.50% 5.32% 6.18%
Core (Net) -0.18% 1.97% 2.25% 5.08% N/A*
Barclays U.S. Aggregate 0.44% 2.68% 2.34% 4.27% 5.52%

*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.

Important Disclosure

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 Fixed Income Composite invests primarily in investment grade securities, while maintaining a portfolio duration range of at least +/-20% around the benchmark. The Core 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. 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