Mutual Funds
Leader Short-Term Bond Fund
The primary objective of Leader Short-Term Bond Fund is to deliver a high level of current income, with a secondary objective of capital appreciation.
INVESTMENT SUITABILITY
The Fund may be suitable for:
Long-term investors seeking a fund with a total return strategy. Investors willing to accept price and return fluctuations associated with lower quality instruments. Investors seeking to diversify their holdings with a portfolio consisting primarily of short-term fixed income securities. Investors seeking to reduce their portfolio’s interest rate risk.
| FUND DATA As of 6/30/10 | ||
| Ticker | LCCMX | LCCIX |
| Share Class | Inv. Share | I Share |
| Fund Assets | $327,540,542.72 | $327,540,542.72 |
| Minimum Investment | $2,500.00 | $2,000,000.00 |
| Minimum Subsequent | $100.00 | $100.00 |
| Number of Holdings | 92 | 92 |
| Gross Expense Ratio* | 1.88% | 1.45% |
| Net Expense Ratio* | 1.86% | 1.43% |
| Inception Date | May 11, 2005 | October 31, 2008 |
| Management Fee | 0.75% | 0.75% |
| SHARE PRICE As of 6/30/10 | |
| Inv. Share NAV | $9.54 |
| I Share NAV | $9.61 |
| FUND PORTFOLIO STATISTICS As of 6/30/10 | |
| Avg. Coupon | 3.06% |
| Avg. Duration | 2.79 |
| Avg. Current Yield | 3.63% |
| Avg. Yield to Maturity | 2.60% |
| 30 Day SEC Yield - Inv. Share | 1.92 |
| 30 Day SEC Yield - I Share | 2.42 |
*The Fund has contractually agreed that the Fund's expenses will not exceed 1.35% of the Fund's average net assets. Ratios listed are as of the 10/1/09 Prospectus.
sector allocation
Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment by the Fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. The fund is exposed to credit risk where lower-rated securities have a higher risk of defaulting on obligations. Investments in foreign securities involve greater volatility and political, economic and currency risks and differences in accounting methods. 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.
JOHN E. LEKAS - PORTFOLIO MANAGER
President, CEO of Leader Capital Corp. and Senior Portfolio Manager of the Leader Short Term Bond Fund
Mr. Lekas has over 18 years of investment experience and has managed fixed income securities on a discretionary basis for over 15 years.
INVESTMENT PROCESS – TOP DOWN FOCUS
- Economic Trends & Outlook
- Yield Curve Analysis
- Selection based on undervalued bonds relative to overall debt markets, industries and individual company issues.
- Diversification used to manage volatility
FUNDAMENTAL RESEARCH
Find companies with recognizable brands, consistent streams of revenue & valuable assets.
Questions:
- Can operating cash flow or free cash flow be sustained?
- Is the revenue stream consistent?
- Do they have monetizable assets?
- How is working capital and liquidity managed?
- When are bank lines of credit and debt coming due?
- What is the annual interest expense?
- How will changing economic trends affect covenants?
- Is the risk worth the reward?
SELL DISCIPLINE
In general, bonds are sold when:
- Valuation targets are achieved
- Changing economics affect the original reasons for investment
- The company exhibits deteriorating fundamentals
- The Portfolio Manager believes more attractive alternatives exist
Definitions:
Free Cash Flow: Free Cash Flow is equal to the net income of a company plus depreciation and amortization less capital expenditures.