Aug 30, 2012 ---
The Scout Low Duration Bond Fund aims to deliver more yield than a money market fund without the volatility of longer-term bond funds.
The fund seeks to maximize risk-adjusted total return while
minimizing volatility and preserving capital, Scout Investments said. It will
diversify its holdings in high-quality, short-term securities with an average
duration of one to three years. However, the manager may also invest in high
yield at opportune times.
“The fund offers investors the potential for an attractive
yield with relatively low credit risk, and provides a strategy to help preserve
capital during periods of rising interest rates,” said Mark Egan, lead
portfolio manager of the Scout Low Duration Bond Fund and managing director of
Scout Investments subsidiary Reams Asset Management. “We believe the fund will
allow investors to preserve past gains and earn a competitive rate of return
while waiting for better opportunities in the future.”
The fund rounds out three other fixed-income funds that
Scout introduced last year, all managed by the Reams portfolio management team.