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LCTIX | LCTRX | Updated as of June 30th, 2022

Our High Quality Floating Rate Fund is focused on maintaining superior portfolio credit quality.

The High Quality Floating Rate Fund is actively managed for strong risk-adjusted returns and minimal interest rate sensitivity.

HIGH CREDIT QUALITY

The Fund invests in A or better-rated securities only. We view our high-quality mandate as crucial to reducing volatility and vital to being a core fixed-income holding.

OPPORTUNISTIC APPROACH

The Fund’s experienced managers look for strategic entry points across asset classes and single securities.

SAFETY OF ASSETS

Most floating-rate funds invest in junk bonds. We are the only floating rate fund that mandates A or better credit quality.

Performance

Distributions

Overall Morningstar Rating

★★★★★

Rated against the following numbers of U.S. Intermediate Core Plus Bond funds over the following time periods: 639 funds overall, 611 funds in the last 3 years, and 589 funds in the last ­5 years.

With respect to these Intermediate Core Plus Bond funds, Total Return Bond Fund received a five star rating overall, five stars for 3 years, and five stars for ­5 years.

Returns

2Q22YTD1Y3Y5Y10YInception
Institutional (LCTIX)-0.57%-2.04%-1.28%3.71%4.46%4.48%4.26%
Investor (LCTRX)-0.69%-2.22%-1.66%3.25%3.98%3.99%3.80%
Morningstar Category Avg.1-5.50%-10.90%-11.01%-0.74%0.96%1.91%
Benchmark2-4.69%-10.35%-10.29%-0.93%0.88%1.54%
2021202020182017201620152014201320122011
Institutional (LCTIX)2.41%12.99%6.625.074.89-7.973.659.4015.170.36
Investor (LCTRX)1.99%12.38%5.994.524.36-8.293.048.9114.54-0.32
Morningstar Category Avg.-0.76%8.10%0.013.542.650.555.97-2.024.217.84
Benchmark-1.54%7.51%3.763.24-0.275.13-1.386.855.78

1 Morningstar Category: Intermediate Core-Plus Bond Category
2 Benchmark: Barclays US Agg Interm TR USD

Performance is annualized trailing returns as of 6/30/2022 for the High Quality Floating Rate Fund for all Share Classes (ticker symbols: LCTIX, LCTRX); LCTIX & LCTRX are not subject to sales loads.

Inception Date – LCTIX: 7/30/2010, LCTRX: 7/30/2010

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Share prices and investment returns fluctuate and investor shares may be worth more or less than original cost upon redemption. To obtain performance as of the most recent month-end, please call 1-800-269-8810.

Key Facts

Size of Fund$28 M
Fund Launch DateJuly 30th, 2010
Morningstar Category Intermediate-Term Bond
Benchmark IndexBBG Barc U.S. Aggregate Index
Distribution FrequencyMonthly
Asset Class Fixed Income
CUSIP - Institutional Share Class52169B509
Open to New InvestorsYes

Portfolio Characteristics

as of 12/31/20

Effective Duration5.17
Current Yield2.31%
Sharpe Ratio0.56
Sortino Ratio0.84
Fund Standard Deviation10.18
Upside Capture114
Downside Capture81

Yield

as of 6/30/22

Current Yield: 2.80%

Trailing 12-Month Yield

Institutional (LCTIX)2.40%
Investor (LCTRX)2.10%

The 12-Month Yield is the yield an investor would have received if they had held the fund over the last 12 months assuming the most recent NAV.

Fees

as of current prospectus
Management Fee0.65%
12B-1 Fees
Institutional (LCTIX)0.00%
Investor (LCTRX)0.38%

Yield

as of 03/31/21

Current Yield: 2.34%

30 Day SEC Yields

Institutional (LCTIX)0.76%
Investor (LCTRX)0.62%

30-Day SEC Yield is a standard yield calculation developed by the Securities and Exchange Commission. It is based on the most recent 30-day period.

Trailing 12-Month Yield

Institutional (LCTIX)2.40%
Investor (LCTRX)2.10%

The 12-Month Yield is the yield an investor would have received if they had held the fund over the last 12 months assuming the most recent NAV.

Fees

as of current prospectus
Management Fee0.65%
12B-1 Fees
Institutional (LCTIX)0.00%
Investor (LCTRX)0.38%

Holdings

NameWeight %
General Electric Company 5%8.33%
VTB Eurasia Designated Activity Company 9.5%5.63%
Antero Resources Corporation 5.12%5.12%
Southwestern Energy Company 7.5%5.12%
Wynn Las Vegas, LLC/Wynn Las Vegas Capital Corp. 5.5%4.94%
NameWeight %
Range Resources Corp. 4.88%4.72%
Delta Air Lines Inc 3.75%4.46%
Microsoft Corporation 4.25%4.33%
Berkshire Hathaway Finance Corporation 4.2%4.03%
Johnson & Johnson 3.75%4.01%

There is no assurance that the securities mentioned remain in the Fund’s portfolio or that the securities sold have not been repurchased. Totals may not add up to 100% due to rounding.

Exposure Breakdowns

US Treasuries0.00%
Corporate Bonds47.57%
Floating Rate Bonds0.00%
Convertibles7.32%
Variable/Hybrids13.91%
Other7.14%
Cash24.06%
< 133.49%
1 - 321.50%
3 - 514.82%
5 - 79.15%
7- 104.57%
10+16.47%
Cash24.06%
US Treasuries0.00%
AAA5.49%
AA+2.74%
AA8.23%
BBB-9.16%
BB-9.16%
B+11.89%
B10.06%
B-4.57%
D6.86%
NR7.78%

Negative weightings may result from specific circumstances (including timing differences between trade and settle dates of securities purchased by the funds) and/or the use of certain financial instruments, including derivatives, which may be used to gain or reduce market exposure and/or risk management. Certain transactions the funds may utilize may give rise to a form of leverage through either (a) additional market exposure or (b) borrowing capital in an attempt to increase investment return. The use of such transactions includes certain leverage-related risks, including potential for higher volatility, greater decline of the fund’s net asset value and fluctuations of dividends and distributions paid by the fund.

Allocations are subject to change.

Literature

Please view our other fund Resources & Information

Disclosures

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.

© 2022 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. The Morningstar RatingTMfor funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figure associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period has the greatest impact because it is included in all three rating periods. Morningstar Rating is for the Service share class only; other classes may have different performance characteristics.

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.

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 30-Day SEC Yield is computed under an SEC standardized formula based on net income earned over the past 30 days. The 30-Day unsubsidized SEC Yield does not reflect any fee waivers/reimbursements/limits in effect.

The Barclays US Intermediate Aggregate Bond Index is a broad-based benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and non-agency) with maturities of 1 to 9.999 years. This index is the funds benchmark. You cannot invest directly into an index.

Holdings are as of date indicated and subject to change.

This material must be preceded or accompanied by a prospectus. An investor should consider the Fund’s objectives, risks, charges and expenses carefully before investing or sending money. This and other important information can be found in the Fund’s prospectus. For more information please call 800-269-8810. Please read the prospectus carefully before investing.

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