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Critical Facts You Need to Know About Preferred Stocks
Have you ever wished for the safety of bonds, but the return potential...
Name
As of 12/04/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
YTD Return
6.0%
1 yr return
6.8%
3 Yr Avg Return
2.6%
5 Yr Avg Return
2.6%
Net Assets
$204 M
Holdings in Top 10
24.4%
Expense Ratio 2.05%
Front Load N/A
Deferred Load 1.00%
Turnover 75.00%
Redemption Fee N/A
Standard (Taxable)
$1,000
IRA
N/A
Fund Type
Open End Mutual Fund
Name
As of 12/04/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
Under normal circumstances, the Fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in income-producing floating-rate loans, other income-producing floating-rate debt securities and exchange-traded funds that invest in such instruments.
The sub-advisor utilizes a combination of top-down and bottom-up research-intensive approaches to achieve the Fund’s objective by identifying fundamentally attractive investments that pay income in the form of interest at variable (i.e., floating) rates based on leading indices, such as the Secured Overnight Financing Rate (“SOFR”), among others, with or without a floor plus a fixed spread. The sub-advisor’s top-down approach includes seeking to establish industry weights by understanding the variables affecting each industry and, therefore, the economy as a whole. The bottom-up approach utilizes the sub-advisor’s proprietary credit technology to analyze quantitative information about all potential investments, combined with fundamental qualitative analysis. The sub-advisor seeks to invest a significant portion of the Fund’s assets in loans that offer attractive relative value, with smaller portions invested in loans deemed likely to outperform the broader market in the near term and in loans that the sub-advisor believes will be driven by specific catalysts and are opportunities for the sub-advisor to take a high-conviction position.
The Fund invests primarily in U.S. dollar-denominated senior secured floating rate corporate loans made by banks and other large financial institutions to various domestic companies. To a lesser extent, the Fund may invest in loans made to foreign companies as well. Floating rate loans are generally senior in the borrowing companies’ capital structures and are typically wholly or partially secured by assets of the borrowing company. In an attempt to create a portfolio with an optimal blend of eligible instruments, the Fund may also invest in fixed-rate debt securities, which may be unsecured, and collateralized loan obligations. The Fund may enter into, or acquire participations in, delayed funding loans and revolving credit facilities. To efficiently obtain exposure to eligible instruments, from time to time, the Fund may invest in one or more exchange-traded funds that invest in such instruments.
The Fund’s investments are primarily below investment grade quality (commonly referred to as “high yield” or “junk” quality obligations) and have below investment grade credit ratings or may be unrated but deemed by the sub-advisor to be of equivalent quality. Credit investments rated below investment grade are generally regarded as
having speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. A significant portion of the Fund’s investments may be unregistered, restricted as to their resale, and may trade in decentralized markets. Additionally, most floating rate loans in the Fund may be considered “covenant-lite” based on the types of lender protections and borrower obligations in the loan agreements.
The sub-advisor’s investment process also incorporates the sub-advisor’s environmental, social, and/or governance (“ESG”) analysis as a consideration in the assessment of existing and potential investments, which may assist in more discretely identifying certain investment risks and opportunities that may not be apparent absent such consideration. Such analysis can include the review of the composition of company boards, trends in diversity statistics, employee turnover, emissions statistics, energy utilization, waste output statistics, and business interruption policies and procedures. The sub-advisor’s research team also reviews ESG data specific to certain industries, such as the existence of anti-money-laundering and other regulatory violations for casino and gaming companies, or environmental non-compliance violations for manufacturing and industrial companies. Importantly, ESG information is just one investment consideration, and ESG considerations are considered along with traditional credit assessment considerations and are not solely determinative in any investment decision made by the sub-advisor. In addition, the sub-advisor does not use ESG considerations to limit, restrict or otherwise exclude companies or sectors from the Fund’s investment universe. The sub-advisor may use ESG research and/or ratings information provided by one or more third parties in performing this analysis and considering ESG risks.
In managing the Fund, the sub-advisor seeks to invest in a portfolio that it believes will be less volatile over time than the general loan market. The Fund invests in securities without regard to maturity or duration and may invest in obligations of companies of all sizes. The Fund has a target investment life cycle of 18 to 24 months and does not employ a “buy-and-hold” strategy. The sub-advisor generally sells a security when it believes its projected future return becomes unattractive relative to the rest of the portfolio or the investable universe.
The coupons on floating rate loans and other floating-rate debt securities are not fixed and may fluctuate based upon changes in market rates. As short-term interest rates increase, interest payable to the Fund may lag behind the increases in market rates or may have limits on the maximum increases in interest rates. As short-term interest rates decline, interest payable to the Fund typically decreases. Floating rate loans typically have mandatory and optional prepayment provisions (also referred to as “calls”). Because of prepayments or calls, the actual remaining maturity of a loan may be considerably less than its stated maturity, and if a floating rate loan is prepaid, the Fund will have to reinvest the proceeds in other loans or instruments which may have lower spreads over their applicable reference rates. In such a case, the amount of interest paid to the Fund would likely decrease.
The Fund may invest a portion of its assets in cash, cash equivalents or other high-quality fixed-income securities in such amounts as the sub-advisor deems appropriate, including when the sub-advisor believes the Fund needs to retain cash. The Fund may invest cash balances in a government money market fund advised by the Manager, with respect to which the Manager receives a management fee. Any such instruments held by the Fund for cash management or defensive investing purposes can fluctuate in value.
Period | SOUCX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 6.0% | -3.7% | 10.2% | 93.94% |
1 Yr | 6.8% | -3.2% | 12.8% | 94.32% |
3 Yr | 2.6%* | -6.9% | 8.3% | 94.14% |
5 Yr | 2.6%* | -6.1% | 38.2% | 90.83% |
10 Yr | N/A* | -2.1% | 19.8% | N/A |
* Annualized
Period | SOUCX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | -0.1% | -12.0% | 11.1% | 96.23% |
2022 | -11.1% | -22.9% | 5.1% | 90.31% |
2021 | 1.2% | -12.2% | 11.1% | 40.87% |
2020 | -5.2% | -14.1% | 289.8% | 82.23% |
2019 | -2.4% | -8.1% | 7.5% | 96.17% |
Period | SOUCX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 6.0% | -3.7% | 10.2% | 93.94% |
1 Yr | 6.8% | -3.2% | 12.8% | 94.32% |
3 Yr | 2.6%* | -6.9% | 8.3% | 94.14% |
5 Yr | 2.6%* | -6.1% | 38.2% | 90.83% |
10 Yr | N/A* | -2.1% | 19.8% | N/A |
* Annualized
Period | SOUCX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 9.5% | -12.0% | 22.1% | 90.94% |
2022 | -6.3% | -22.9% | 5.1% | 89.15% |
2021 | 5.3% | -10.2% | 11.1% | 34.13% |
2020 | -0.1% | -14.1% | 306.9% | 78.93% |
2019 | 3.5% | -3.6% | 10.5% | 95.32% |
SOUCX | Category Low | Category High | SOUCX % Rank | |
---|---|---|---|---|
Net Assets | 204 M | 29.9 M | 13.5 B | 77.99% |
Number of Holdings | 223 | 2 | 2051 | 81.32% |
Net Assets in Top 10 | 32.3 M | -191 M | 2.37 B | 70.04% |
Weighting of Top 10 | 24.39% | 5.2% | 100.7% | 14.06% |
Weighting | Return Low | Return High | SOUCX % Rank | |
---|---|---|---|---|
Bonds | 104.01% | 0.00% | 161.82% | 9.34% |
Stocks | 4.22% | 0.00% | 100.74% | 21.79% |
Preferred Stocks | 0.00% | -3.99% | 7.54% | 35.80% |
Other | 0.00% | -52.39% | 26.58% | 61.09% |
Convertible Bonds | 0.00% | 0.00% | 5.51% | 58.04% |
Cash | 0.00% | -61.90% | 16.36% | 89.49% |
Weighting | Return Low | Return High | SOUCX % Rank | |
---|---|---|---|---|
Utilities | 0.00% | 0.00% | 100.00% | 24.11% |
Technology | 0.00% | 0.00% | 100.00% | 27.68% |
Real Estate | 0.00% | 0.00% | 48.61% | 16.96% |
Industrials | 0.00% | 0.00% | 100.00% | 36.16% |
Healthcare | 0.00% | 0.00% | 100.00% | 22.77% |
Financial Services | 0.00% | 0.00% | 89.61% | 19.20% |
Energy | 0.00% | 0.00% | 100.00% | 52.68% |
Communication Services | 0.00% | 0.00% | 100.00% | 45.98% |
Consumer Defense | 0.00% | 0.00% | 100.00% | 20.54% |
Consumer Cyclical | 0.00% | 0.00% | 97.66% | 58.93% |
Basic Materials | 0.00% | 0.00% | 1.36% | 33.93% |
Weighting | Return Low | Return High | SOUCX % Rank | |
---|---|---|---|---|
US | 4.22% | -0.01% | 100.74% | 21.40% |
Non US | 0.00% | 0.00% | 0.68% | 41.25% |
Weighting | Return Low | Return High | SOUCX % Rank | |
---|---|---|---|---|
Corporate | 88.47% | 0.00% | 99.80% | 61.18% |
Derivative | 0.00% | -11.46% | 0.67% | 47.47% |
Cash & Equivalents | 0.00% | 0.00% | 25.03% | 87.16% |
Securitized | 0.00% | 0.00% | 91.68% | 63.53% |
Municipal | 0.00% | 0.00% | 0.47% | 31.76% |
Government | 0.00% | 0.00% | 3.18% | 42.35% |
Weighting | Return Low | Return High | SOUCX % Rank | |
---|---|---|---|---|
US | 104.01% | 0.00% | 124.50% | 7.00% |
Non US | 0.00% | 0.00% | 63.23% | 59.14% |
SOUCX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Expense Ratio | 2.05% | 0.03% | 5.51% | 17.42% |
Management Fee | 0.65% | 0.00% | 1.89% | 56.44% |
12b-1 Fee | 1.00% | 0.00% | 1.00% | 80.45% |
Administrative Fee | N/A | 0.02% | 0.27% | 94.29% |
SOUCX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Front Load | N/A | 1.00% | 5.75% | N/A |
Deferred Load | 1.00% | 1.00% | 1.00% | 25.00% |
SOUCX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Max Redemption Fee | N/A | 1.00% | 2.00% | N/A |
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
SOUCX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Turnover | 75.00% | 4.00% | 180.00% | 59.50% |
SOUCX | Category Low | Category High | SOUCX % Rank | |
---|---|---|---|---|
Dividend Yield | 8.31% | 0.00% | 11.13% | 2.26% |
SOUCX | Category Low | Category High | Category Mod | |
---|---|---|---|---|
Dividend Distribution Frequency | None | Monthly | Monthly | Monthly |
SOUCX | Category Low | Category High | SOUCX % Rank | |
---|---|---|---|---|
Net Income Ratio | 3.01% | 1.77% | 9.82% | 81.03% |
SOUCX | Category Low | Category High | Capital Mode | |
---|---|---|---|---|
Capital Gain Distribution Frequency | Annually | Annually | Annually |
Date | Amount | Type |
---|---|---|
Nov 27, 2024 | $0.055 | OrdinaryDividend |
Oct 30, 2024 | $0.055 | OrdinaryDividend |
Sep 27, 2024 | $0.061 | OrdinaryDividend |
Aug 30, 2024 | $0.067 | OrdinaryDividend |
Jul 30, 2024 | $0.062 | OrdinaryDividend |
Jun 27, 2024 | $0.042 | OrdinaryDividend |
May 30, 2024 | $0.068 | OrdinaryDividend |
Apr 29, 2024 | $0.065 | OrdinaryDividend |
Mar 27, 2024 | $0.094 | OrdinaryDividend |
Feb 29, 2024 | $0.063 | OrdinaryDividend |
Jan 31, 2024 | $0.049 | OrdinaryDividend |
Dec 29, 2023 | $0.044 | OrdinaryDividend |
Dec 21, 2023 | $0.027 | OrdinaryDividend |
Nov 30, 2023 | $0.064 | OrdinaryDividend |
Oct 31, 2023 | $0.068 | OrdinaryDividend |
Sep 29, 2023 | $0.070 | OrdinaryDividend |
Aug 31, 2023 | $0.071 | OrdinaryDividend |
Jul 31, 2023 | $0.069 | OrdinaryDividend |
Jun 30, 2023 | $0.068 | OrdinaryDividend |
May 31, 2023 | $0.068 | OrdinaryDividend |
Apr 28, 2023 | $0.054 | OrdinaryDividend |
Mar 31, 2023 | $0.051 | OrdinaryDividend |
Feb 28, 2023 | $0.049 | OrdinaryDividend |
Jan 31, 2023 | $0.055 | OrdinaryDividend |
Dec 29, 2022 | $0.049 | OrdinaryDividend |
Dec 22, 2022 | $0.015 | OrdinaryDividend |
Nov 29, 2022 | $0.047 | OrdinaryDividend |
Oct 28, 2022 | $0.048 | OrdinaryDividend |
Sep 29, 2022 | $0.040 | OrdinaryDividend |
Aug 30, 2022 | $0.035 | OrdinaryDividend |
Jul 28, 2022 | $0.035 | OrdinaryDividend |
Jun 29, 2022 | $0.031 | OrdinaryDividend |
May 30, 2022 | $0.034 | OrdinaryDividend |
Apr 28, 2022 | $0.024 | OrdinaryDividend |
Mar 30, 2022 | $0.027 | OrdinaryDividend |
Feb 25, 2022 | $0.021 | OrdinaryDividend |
Jan 28, 2022 | $0.023 | OrdinaryDividend |
Dec 31, 2021 | $0.024 | OrdinaryDividend |
Dec 22, 2021 | $0.029 | OrdinaryDividend |
Nov 30, 2021 | $0.023 | OrdinaryDividend |
Oct 29, 2021 | $0.026 | OrdinaryDividend |
Sep 30, 2021 | $0.026 | OrdinaryDividend |
Aug 31, 2021 | $0.026 | OrdinaryDividend |
Jul 30, 2021 | $0.024 | OrdinaryDividend |
Jun 30, 2021 | $0.031 | OrdinaryDividend |
May 28, 2021 | $0.027 | OrdinaryDividend |
Apr 30, 2021 | $0.029 | OrdinaryDividend |
Mar 31, 2021 | $0.026 | OrdinaryDividend |
Feb 26, 2021 | $0.025 | OrdinaryDividend |
Jan 29, 2021 | $0.026 | OrdinaryDividend |
Dec 31, 2020 | $0.028 | OrdinaryDividend |
Dec 22, 2020 | $0.028 | OrdinaryDividend |
Dec 01, 2020 | $0.026 | OrdinaryDividend |
Nov 02, 2020 | $0.023 | OrdinaryDividend |
Oct 01, 2020 | $0.030 | OrdinaryDividend |
Sep 01, 2020 | $0.027 | OrdinaryDividend |
Aug 03, 2020 | $0.021 | OrdinaryDividend |
Jul 01, 2020 | $0.033 | OrdinaryDividend |
Jun 01, 2020 | $0.038 | OrdinaryDividend |
May 01, 2020 | $0.035 | OrdinaryDividend |
Apr 01, 2020 | $0.043 | OrdinaryDividend |
Mar 02, 2020 | $0.039 | OrdinaryDividend |
Feb 03, 2020 | $0.045 | OrdinaryDividend |
Dec 31, 2019 | $0.046 | OrdinaryDividend |
Dec 20, 2019 | $0.014 | OrdinaryDividend |
Dec 02, 2019 | $0.044 | OrdinaryDividend |
Nov 01, 2019 | $0.046 | OrdinaryDividend |
Oct 01, 2019 | $0.043 | OrdinaryDividend |
Sep 03, 2019 | $0.046 | OrdinaryDividend |
Aug 01, 2019 | $0.046 | OrdinaryDividend |
Jul 01, 2019 | $0.045 | OrdinaryDividend |
Dec 21, 2017 | $0.025 | CapitalGainShortTerm |
Dec 21, 2017 | $0.001 | CapitalGainLongTerm |
Dec 22, 2016 | $0.019 | CapitalGainShortTerm |
Dec 22, 2015 | $0.194 | DailyAccrualFund |
Dec 22, 2015 | $0.038 | CapitalGainShortTerm |
Start Date
Tenure
Tenure Rank
Dec 03, 2012
9.5
9.5%
Mr. Joel Beam serves as Managing Director & Senior Portfolio Manager, Real Estate at Salient Partners. He is a seasoned investment professional with over 20 years of experience in real estate securities research and investment management. He is nationally recognized for his experience in managing preferred and senior securities. Previously, Joel was a partner and portfolio manager at Kensington Investment Group, Inc. and a member of the firm's executive committee. He joined Kensington in 1995 as a senior analyst and began managing portfolios in 1997. In 2009, Kensington was acquired by forwarding Management, and subsequently in 2015, Salient acquired Forward. Joel previously worked at Liquidity Financial Advisors, where he valued and priced real estate limited partnership and institutional securities and their underlying properties. Joel holds a bachelor of arts (with honors) from the University of California, Berkeley.
Start Date
Tenure
Tenure Rank
Jan 25, 2019
3.35
3.4%
Joe Xu is Portfolio Manager and Senior Credit Analyst. Mr. Xu joined Sound Point in 2014 as a credit analyst. He currently serves as Portfolio Manager on the firm’s U.S. Floating Rate Fund Investment Committee and Senior Credit Analyst covering the Technology sector. Prior to joining Sound Point, Mr. Xu spent over 3 years as a credit analyst with Ares Management, where he evaluated leveraged loan opportunities in the Business Services, Consumer, Industrial, Media and Technology sectors. Prior to Ares, Mr. Xu evaluated, structured and executed private equity and mezzanine debt investments for Veronis Suhler Stevenson, a middle market private equity and specialty finance firm. Mr. Xu began his career as an investment banking analyst with William Blair & Company and graduated cum laude from the University of Illinois at Urbana-Champaign with a B.S. in Accounting.
Start Date
Tenure
Tenure Rank
May 11, 2020
2.05
2.1%
Brian McHugh is a Portfolio Manager at Sound Point. Mr. McHugh joined Sound Point in 2018. He currently serves as Portfolio Manager on the firm’s U.S. Floating Rate Fund Investment Committee, Risk Committee and CLO Risk Committee. Prior to joining Sound Point, Mr. McHugh spent 12 years at Halcyon Capital Management, where he focused primarily on investments in the Healthcare sector. Prior to Halcyon, Mr. McHugh spent approximately 7 years at Prudential Financial, where he was a Credit Analyst. Mr. McHugh earned a B.S. in Finance from the University of Delaware.
Category Low | Category High | Category Average | Category Mode |
---|---|---|---|
0.09 | 21.18 | 6.08 | 3.25 |
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