investment strategy / process
The Allegiant Total Return Advantage Fund is managed through a team-driven, top-down process utilizing active sector rotation, duration and yield curve management, with extensive credit research and portfolio analysis to mitigate risk. The Fund seeks to provide current income, as well as capital appreciation by investing in investment-grade fixed income securities, including U.S. government bonds, corporate bonds, mortgage-backed securities or asset-backed securities. The dollar-weighted average maturity of the Fund is expected to remain within four to twelve years. The Fund's duration (its sensitivity to interest rate changes) should remain within 10% of its benchmark index, the Barclays U.S. Government/Credit Index.
Investment Risk
An investment in the Fund is subject to interest rate risk, which is the possibility that a Fund’s yield will decline due to falling interest rates. High yielding, non-investment grade bonds present a greater risk of loss to principal and interest than investment grade securities. The value of debt securities may be affected by the ability of issuers to make principal and interest payments. Although U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates and bond fund prices may decline as interest rates rise. Derivative instruments include options, futures and options on futures. A small investment in derivatives could have a potentially large impact on the Fund’s performance. The use of derivatives involves risks different from the risks associated with investing directly in the underlying assets. Derivatives can be volatile, illiquid and difficult to value, and an imperfect correlation may exist between changes in the value of a derivative held by the Fund and the Fund’s other investments.
*Sector weightings and top ten holdings are subject to change, for illustrative purposes only and are not a permanent reflection of the fund.
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Asset Allocation (%)
|
|
| EQUITY |
0.21 |
| BOND |
93.98 |
| CASH EQUIVALENTS & OTHER |
5.86 |
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Asset Allocation weightings may not total 100%
Sector Weightings (%)*
|
|
| Federal National Mortgage Association |
38.88 |
| Corporate Bonds |
33.09 |
| Cash & Cash Equivalents |
6.61 |
| U.S. Treasury Bonds |
5.34 |
| U.S. Treasury Notes |
4.36 |
| Collateralized Mortgage Obligations |
3.47 |
| Asset-Backed Securites |
3.35 |
| Commercial Mortgage-Backed Securities |
3.20 |
| Federal Home Loan Mortgage Corp. |
1.70 |
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Portfolio Management
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Andrew D. Harding
Chief Investment Officer, Fixed Income
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Brian L. Stine, CFA
Portfolio Manager, Fixed Income
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Cynthia D. Cole
Senior Portfolio Manager, Fixed Income
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Timothy D. Compan Jr., CFA
Portfolio Manager, Corporate Bonds
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Mark A. Lozina, CFA
Portfolio Manager, Short Duration
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