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.