Short Duration Fund
Investment Objective
Current Income.
Investment Strategy
Under normal market conditions, the Fund invests at least 80% of its assets in fixed income securities across a broad group of industries, geographies, and company market capitalizations. The Fund will primarily own corporate bonds of U.S. domiciled companies (both investment grade and below-investment grade, i.e., “high yield” or “junk” bonds) and can also own securities issued or guaranteed by the U.S. Government, its agencies or government-sponsored enterprises, money market instruments, mortgage-backed and asset-backed securities, loans, non-rated securities.
Differentiators
Integrated Research Team
In addition to quantitative screening, we leverage rigorous equity research into underlying companies to generate and evaluate fixed income investment ideas.
Agility
Our flexible mandate allows for discretion in our investments—whether they be treasuries, agencies, or corporate bonds across the credit spectrum, allowing us to respond to evolving market conditions.
Efficiency
Our relatively small size allows us to take advantage of debt offerings which may be inefficiently sized for large portfolios.
Fund Facts
Ticker:
VESDX
CUSIP:
92262L889
Inception Date:
Dec. 15, 2023
Benchmark:
Bloomberg 1-3 Yr Gov/Credit TR Index
Minimum Purchase:
$2,500
Expense Ratio:
0.66%
Period and Annualized Total Returns (%)
As of TBD
| QTD | 1 Year | Since Inception | |
|---|---|---|---|
| Class I | - | - | - |
| Bloomberg 1-3 Year Gov/Credit TR Index | - | - | - |
Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Investors may obtain performance data current to the most recent month-end by calling 833-399-1001.
Portfolio Characteristics
As of TBD
Fixed Income Sectors |
Fund |
Index1 |
| Corporate | 73.8 | 25.6 |
| U.S. Agencies | 5.2 | 3.5 |
| U.S. Treasuries | 18.4 | 69.4 |
| Other Government Related* | 0.0 | 1.5 |
| Cash & Equivalents | 2.7 | 0.0 |
Credit Rating (%) |
Fund |
Index1 |
| AAA | 0.0 | 3.1 |
| AA | 23.3 | 74.3 |
| A | 8.7 | 11.9 |
| BBB | 45.2 | 9.9 |
| BB | 20.7 | 0.5 |
| B | 0.6 | 0.0 |
| Cash & Equivalents | 1.6 | 0.0 |
Duration Distribution (%) |
Fund |
Index1 |
| 0-1 Years | 26.5 | - |
| 1-3 Years | 45.1 | - |
| 3-5 Years | 20.0 | - |
| >5 Years | 5.7 | - |
Maturity Distribution (%) |
Fund |
Index1 |
| 0-1 Years | 26.0 | 4.1 |
| 1-3 Years | 38.6 | 95.9 |
| 3-5 Years | 24.6 | 0.0 |
| >5 Years | 8.2 | 0.0 |
1Index (Bloomberg 1-3 Year Gov/Credit TR Index)
Distributions
Distribution Schedules
| Dividend Frequency | Monthly |
| Dividend Recognition Basis | Accrual |
| Capital Gain Distributions | December |
Historical Distributions
| Record Date | Payable & Reinvestment Date | Reinvestment NAV | Income | Short Term Gain | Long Term Gain | Total Per Share |
|---|
|
Investors should carefully consider the investment objectives, risks, and charges and expenses of the fund before investing. The prospectus contains this and other information about the fund, and it should be read carefully before investing. Investors may obtain a copy of the prospectus by calling 833-399-1001.
The fund is distributed by Ultimus Fund Distributors, LLC. (Member FINRA). VELA Investment Management, LLC and Ultimus Fund Distributors, LLC are not affiliated.
Value stocks are those that are believed to be undervalued in comparison to their peers due to adverse business developments or other factors. Value investing is subject to the risk that the market will not recognize a security’s inherent value for a long time or at all, or that a stock judged to be undervalued may actually be appropriately priced or overvalued. In addition, during some periods (which may be extensive), value stocks generally may be out of favor in the markets.
The Fund may invest in high yield securities, also known as "junk bonds." High yield securities provide greater income and opportunity for gain, but entail greater risk of loss of principal.
The fund may invest in non-U.S. securities and U.S. securities of companies domiciled in non-U.S. countries that may experience more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies. These companies may be subject to additional risks, including political and economic risks, civil conflicts and war, greater volatility, expropriation and nationalization risks, currency fluctuations, regulatory risk, higher transaction costs, delayed settlement, possible non-U.S. controls on investments, and less stringent investor protection and disclosure standards of U.S. markets.
Fixed income investments are affected by a number of risks, including fluctuation in interest rates, credit risk, and prepayment risk. In general, as prevailing interest rates rise, fixed income prices will fall.
The fund is newly organized and has little or no operating history. While the Adviser has experience in investment-related activities, the Adviser has limited experience managing registered investment companies.
Indexes are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio.
The Bloomberg Aggregate Bond Index broadly tracks the performance of the U.S. investment-grade bond market. The index is composed of investment-grade government and corporate bonds.
Annually, a fund must distribute all realized capital gains net of realized losses, so the fund will not be subject to an entity level income tax. A fund's capital gain distribution in a particular year may be a result of the disposition of holdings that appreciated in value during prior years. Thus, while the fund may gain or lose value over the course of a year, a capital gain distribution paid by the fund may not be indicative of current performance of the fund. The distributable amount of net capital gains are paid on a per-share basis to all investors who hold shares of the fund on the record date of the distribution and are recognized by the shareholder for tax purposes as of the ex-date of the distribution, regardless of when the gains or losses arose in the fund. Net gains on holdings held long term by the fund would be distributed to shareholders as a long-term capital gain distribution no matter how long the shareholder has owned shares in the fund. Refer to the fund's annual report or statement of additional information for specific information regarding distributions.
Record Date: the cutoff established by the fund to determine the shareholders eligible to receive a dividend or distribution.
Payable & Reinvestment Date: refers to the date that any dividends are due to be paid out to shareholders as of the record date. For shareholders who elect to have dividends reinvested into the fund rather than paid out, this is also the date of reinvestment, i.e. reinvestment date.
Reinvestment NAV: the price per share on the day the distribution is reinvested.
Income: revenue received from an investment.
ST (Short Term) Gain: profits realized from the sale of investments held for one year or less, taxed at the taxpayer's top marginal tax rate or regular income tax bracket, which can range from 10% to 37%. Short-term capital gains receive less preferential tax treatment compared to assets held for at least one year taxed at lower long-term capital gain rates.
LT (Long Term) Gain: profits realized from the sale of investments held for greater than one year, taxed between 0% and 20%, depending on the investor’s income.
Total Per Share: reflects the total dividend income paid out to shareholders, divided by the number of outstanding shares of the fund.
VELA Investment Management does not provide tax advice. Please consult your tax advisor before making any decisions or taking any action based on this information.