The investment objective of the Leader Floating Rate Fund is to seek a high level of current income, with a secondary objective of capital appreciation.
Under normal circumstances, the Fund invests at least 80% of its net assets, plus any amount of borrowings for investment purposes, in floating rate debt securities.
Performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than what is stated.
This material must be preceded or accompanied by a prospectus. To obtain performance as of the most recent month end, please call 1-800-269-8810.
S&P/LSTA Leveraged Loan Total Return Index: The S&P/LSTA U.S. Leveraged Loan 100 Index is designed to reflect the performance of the largest facilities in the leveraged loan market.
All data is for LFIFX Leader Floating Rate Institutional Share Class.
*Holdings are as of 6/30/2017 and subject to change.
As of 09/30/2017
The portfolio is actively managed. Holdings and weightings are subject to change daily and are provided for informational purposes only and should not be deemed as a recommendation to buy or sell the securities mentioned. Fund composition is based on net assets.
As of 09/30/2017
Effective Duration: Measures a portfolio’s sensitivity to changes in interest rates. Generally, the longer the effective duration, the greater the price change relative to interest rate movements.
Average Current Yield is the weighted average of the annual rate of return based on price. It is calculated by the coupon divided by the price.
*Gross expense ratios are reported as of the 12/30/2016 prospectus.
Morningstar Category: Bank Loans
Important Risks: Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher quality bonds generally offer less risk than longer term bonds and a lower rate of return. Generally, a fund’s fixed income securities will decrease in value if interest rates rise and vice versa.
As with all mutual funds, there is the risk that you could lose money through your investment in the Fund. Investments in debt securities typically decrease in value when interest rates rise. This risk is actually greater for longer-term debt securities. Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. Collateral Loan Obligations (“CLOs”) and collateralized debt obligations (“CDOs”) are securities backed by an underlying portfolio of loan and debt obligations and the risks depend largely on the types of those underlying holdings. Investments in foreign securities involve greater volatility and political, economic and currency risks. The fund is exposed to credit risk where lower –rated securities have a higher risk of defaulting on obligations. Investment by the fund in lower-rated and nonrated securities presents a greater risk of loss of principle and interest than higher-rated securities. The Fund is subject to liquidity risk as some securities may have few market-makers and low trading volume, which tends to increase transaction costs and may make it difficult for the Fund to dispose of a security at all or at a price which represents current or fair market value. As a result of its trading strategy, the Fund expects to engage in frequent portfolio transactions that will likely result in higher portfolio turnover and commissions than many investment companies.
Mortgage-backed investments involve risk of loss due to prepayments and, like any bond, due to default. Because the sensitivity of mortgage-related securities to changes in interest rates, a fund’s performance may be more volatile than if it did not hold these securities.
Portfolio characteristics represent 100% of the portfolio and will vary over time. Credit qualities are shown as a percentage of net assets. A bond rated BBB or higher is considered investment grade. This chart reflects the highest security rating provided by Standard & Poor’s. Ratings and portfolio credit quality will vary over time.
Average Duration is the weighted average of the option adjusted duration of the portfolio. It is a measure of the sensitivity of the portfolio to changes in interest rates. The higher the duration the more sensitive the portfolio is to changes in interest rates. Average Current Yield is the weighted average of the annual rate of return based on price. It is calculated by the coupon divided by the price. The S&P/LSTA Leveraged Loan Total Return Index tracks the performance of US dollar denominated bank loan debt publicly issued in the US domestic market. This is the Fund’s benchmark. You cannot invest directly in an index.
**30-Day SEC Yield: The 30-Day SEC Yield is computed under an SEC standardized formula based on net income earned over the past 30 days.
Holdings are as of date indicated and subject to change.
The investment objective of the Floating Rate Fund is to seek a high level of current income, with a secondary objective of capital appreciation.
KEY NUMBERS AS OF 09/30/17
Total Assets: $18.7 MM
Dividend Frequency: Monthly
30-DAY SEC YIELD** AS OF 09/30/17