Target Style


Fund Objective:

Seeks current income, with capital appreciation as a secondary objective, with a significant portion of the Fund’s assets invested in securities issued or guaranteed by the U.S. government.
 

Fund Highlights:

  • GNMAs, with the backing of the U.S. government, offer inherent safety and credit quality which can help stabilize portfolios.
  • Management evaluates macroeconomic and technical factors such as Federal Reserve actions, government bond prices and other market indices to establish average maturity and duration characteristics. 
  • Higher-quality securities may add stability in uncertain economic environments.

 

The BofA Merrill Lynch Mortgages GNMA Master Index is a subset of the BofA Merrill Lynch US Mortgage Backed Securities Index including all securities issued by Ginnie Mae except for interest-only fixed rate mortgage pools and hybrids. Please note an investor cannot invest directly in an index.

1Includes fees waived and expenses reimbursed
2Excludes fees waived and expenses reimbursed

Although this Fund invests in securities that are backed by the full faith and credit of the U.S. Government, the Fund itself is not guaranteed by the U.S. government. Performance data quoted represents past performance and is not a guarantee of future results.

Gross operating expenses: Class A: 1.14%. Net operating expenses: Class A: 0.99%, after contractual waiver of fees and/or reimbursement of expenses which will continue indefinitely subject to termination by the Board. Waivers and/or reimbursements may be subject to recoupment within two years. Performance data quoted represents past performance and is no guarantee of future results. Assumes reinvestment of all distributions at net asset value. Class A maximum sales charge: 4.75%. The Fund’s daily net asset value is not guaranteed and shares are not insured by the FDIC, the Federal Reserve Board or any other agency. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be higher or lower than the original cost.

$10,000 initial investment in Class A from Fund inception through the report date, with all income dividends and capital gains reinvested.  Includes a maximum 5.75% sales charge. This chart is hypothetical and is for illustrative purposes only.

There is no guarantee a fund will meet its objective.

The style and risk measures illustrated above are broad-based, relative targets for the Fund. There can be no assurances that the Fund exactly exhibits these categorizations at any given time.

Standard Deviation is a measure of the volatility that an investment experiences over time. The higher the standard deviation, the greater the performance swings of the investment. The Sharpe Ratio uses a fund’s standard deviation and its excess return (the difference between the fund’s return and the risk-free return of 90-day Treasury Bills) to determine reward per unit of risk. Beta is a measure of a fund’s sensitivity to market movements. A portfolio with a beta greater than 1 is more volatile than the market, and a portfolio with a beta less than 1 is less volatile than the market. R-Squared reflects the percentage of a fund’s movements that are explained by movements in its benchmark index, showing the degree of correlation between the fund and the benchmark. Alpha is a measure of performance on a risk adjusted basis of a mutual fund and compares its risk adjusted performance to a benchmark index. A positive alpha of 1.0% means the fund has outperformed its benchmark index by 1% and a negative alpha of -1.0% would indicate an underperformance of 1%.