Morningstar Fund Fact Sheet
The Morningstar Style Box reveals a fund’s investment strategy.
The Morningstar Style Box reveals a fund’s investment strategy.
|30 Day Distribution Yield at||1.52%|
|30 Day Compounded Yield||1.53%|
|30 Day SEC Yield||-0.15%|
AVERAGE ANNUAL TOTAL RETURNS as of:09/30/21
|(Annualized) for the periods ending:||One Year||0.40%|
EXAMPLES OF TAX EQUIVALENT YIELDS:
|Federal Tax||State Tax||Combined Tax||Distributed||Reinvested|
Performance data quoted represents past performance. Past performance does not guarantee future results, 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, and current performance may be lower or higher than the performance data quoted. Investors may call 1-800-866-0614 to obtain performance data current to the most recent month-end.
You may lose money investing in the Fund. Mutual fund shares are not deposits or obligations of, or guaranteed or endorsed by, any bank or the U.S. government. Securities held by the fund may be downgraded or default, lowering the value of the securities. For single state funds, regional factors may cause the fund to decline in value more than a fund holding securities from many states. The fund is subject to management risk, because it is an actively managed investment portfolio. There is no guarantee that the investment objectives of the fund will be achieved. As interest rates rise, bond prices fall.
Yield data shown is based on calculations as further explained in the Statement of Additional Information which is available upon request. The 30 Day Distribution Yield represents the annualized average dividend divided by the average number of shares for the past 30 days. The 30 Day Compound Yield represents the 30 Day Distribution Yield compounded quarterly for those shareholders who elect to reinvest dividends. Portfolio turnover is defined to be the lesser of purchases or sales divided by the average monthly value of the portfolio. Average Effective Duration is a measure of the interest rate sensitivity of securities held in the portfolio, taking into account embedded options such as call features. Average Effective Maturity is the dollar-weighted average of the number of years to the likely redemption date of the securities held in the portfolio, taking into account embedded options such as call features. Avg Wtd Price is the average dollar-weighted market price of bonds held in the portfolio. Performance data shown represents past performance and is not a guarantee of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Quoted fund expenses are taken from the fee table of the most recent prospectus.
The Morningstar Style Box reveals a fund’s investment strategy. For equity funds the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). For fixed-income funds, the vertical axis shows the credit quality of the bonds owned and the horizontal axis shows interest rate sensitivity as measured by a bond’s effective duration.
Morningstar seeks credit rating information from fund companies on a periodic basis (e.g, quarterly). In compiling credit rating information, Morningstar instructs fund companies to only use ratings that have been assigned by a Nationally Recognized Statistical Rating Organization (NRSRO). If two NRSROs have rated a security, fund companies are to report the lowest rating; if three or more NRSROs have rated the same security differently, fund companies are to report the rating that is in the middle. For example, if NRSRO X rates a security AA-, NRSRO Y rates the same security an A and NRSRO Z rates it a BBB+, the fund company should use the credit rating of “A” in its reporting to Morningstar. PLEASE NOTE: Morningstar, Inc. is not itself an NRSRO nor does it issue a credit rating on the fund. An NRSRO rating on a fixed-income security can change from time-to-time.
For credit quality, Morningstar combines the credit rating information provided by the fund companies with an average default rate calculation to come up with a weighted-average credit quality. The weighted-average credit quality is currently a letter that roughly corresponds to the scale used by a leading NRSRO. Bond funds are assigned a stylebox placement of low, medium, or high based on their average credit quality. Funds with a low credit quality are those whose weighted-average credit quality determined to be less than BBB-; medium are those less than AA-, but greater or equal to BBB-; and high are those with a weighted-average credit quality of AA- or higher. When classifying a bond portfolio, Morningstar first maps the NRSRO credit ratings of the underlying holdings to their respective default rates (as determined by Morningstars analysis of actual historical default rates). Morningstar then averages these default rates to determine the average default rate for the entire bond fund. Finally, Morningstar maps this average default rate to its corresponding credit rating along a convex curve.
For interest-rate sensitivity, Morningstar obtains from fund companies the average effective duration. Generally, Morningstar classifies a fixed-income fund’s interest rate sensitivity based on the effective duration of the Morningstar Core Bond Index (MCBI), which is currently three years. The classification of Limited will be assigned to those funds whose average effective duration is between 25% to 75% of MCBI’s average effective duration; funds whose average effective duration is between 75% to 125% of the MCBI will be classified as Moderate; and those that are at 125% or greater of the average effective duration of the MCBI will be classified as Extensive.
For municipal bond funds, Morningstar also obtains from fund companies the average effective duration. In these cases static breakpoints are utilized. These breakpoints are as follows: (i) Limited: 4.5 years or less; (ii) Moderate: more than 4.5 years but less than 7 years; and (iii) Extensive: more than 7 years. In addition, for non-US taxable and non-US domiciled fixed income funds static duration breakpoints are used: (i) Limited: less than or equal to 3.5 years; (ii) Moderate: greater than 3.5 and less than equal to 6 years; (iii) Extensive: greater than 6 years.
For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. Click here to for more detail.
Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Dupree & Company, Inc. is a FINRA member firm. Past performance is no guarantee of future results.