PRFD

PRFD seeks to provide total return by primarily investing in the preferred and capital securities market. Capital securities may include securities issued by financial institutions around the globe. The fund considers issuers of any market capitalization and may allocate up to 50% of its assets in high-yield securities. The fund may invest without limit in USD- or non-USD denominated securities of foreign issuers. A bottom-up approach is utilized to identify undervalued sectors and securities. The resulting portfolio is typically concentrated in banking industries. The fund maintains an average portfolio duration within one year of the portfolio duration of the ICE BofA US All Capital Securities Index. To attain the desired exposure, PRFD may use derivatives such as options, futures and swaps. It may also utilize currency forwards and engage in short selling. The actively managed fund has a longer investment horizon, it does not put emphasis on short-term, tactical trading. As such, fund investments and returns are expected to be different from other funds from the adviser.