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JDFAX

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Flexible Bond Fund

30 Years of Fundamental Fixed Income Investing
NAV As of 12/14/18 $9.90

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Fund Facts

Details Yields Morningstar (As of 11/30/18)
07/07/87 Inception Date
$6.48B Total Net Assets (As of 11/30/18)
GROSS 0.95%
NET 0.91%
Annual Expense Ratio
(As of fiscal year end 06/30/18)
Morningstar Fee Level (As of 11/30/18)
Fee Level Group
Specialty Institutional
(out of 421 funds)
Morningstar Fee Level Low
View Morningstar Fee Level
3.32% Distribution Yield at NAV
(As of 11/30/18)
30 Day SEC Yield (As of 11/30/18)
With Waivers 2.59%
Without Waivers 2.59%
Monthly Distribution Frequency
Performance (As of 12/14/18)
0.11% 1 Day Return %
-1.78% YTD Return @NAV
-6.48% YTD Return @MOP
Category
Technology
ic_star ic_star ic_star ic_star
181 Funds Rated
Overall Rating
(Based on risk-adjusted returns)
LARGE VALUE
LARGE BLEND
LARGE GROWTH
MID VALUE
MID BLEND
MID GROWTH
SMALL VALUE
SMALL BLEND
SMALL GROWTH
Equity Style Box *
Important Morningstar Information

Overview

Client Commitment

This dynamic core bond fund leverages a bottom-up, fundamentally driven investment process designed to generate risk-adjusted outperformance and capital preservation. Throughout its 30 year history, the Fund has utilized an active and flexible approach to manage across a variety of market and rate cycles.

Why Invest in the Fund

    Dynamic Core Bond Holding

  1. By emphasizing risk-adjusted returns and capital preservation, the fund can serve as a foundation for a fixed income portfolio. The strategy uses a bottom-up, fundamentally driven investment process that seeks to identify the best opportunities across fixed income sectors, including up to 35% high-yield.
  2. Integrated Research

  3. Partnership and fluid communication between fixed income and equity analysts promote idea generation. Credit research emphasizes free cash flow generation, quality of management and security valuation.
  4. Sophisticated Risk Management

  5. Our proprietary fixed income portfolio and risk-management system, Quantum Global, is integrated into the investment process at each step. We identify and measure the sources of risk in the portfolio at multiple levels to confirm that the portfolio is positioned as intended.

Competitive Returns with Less Volatility than Majority of Peers

Flexible Bond Fund (Class I Shares) Compared to Index and Peers (10 Years: 9/30/08 – 9/30/18)

Standard Deviation measures historical volatility. Higher standard deviation implies greater volatility. As of 9/30/18, the 3 year standard deviation for Flexible Bond Fund (Class I Shares) was 2.40%.

Featured Insights

Performance

RETURNS

(As of 09/30/2018)
(As of 11/30/2018)
Inception: Jul 07, 1987 3M YTD 1YR 3YR 5YR 10YR Since Inception
Class A Shares @NAV 0.20% -1.63% -1.49% 1.01% 1.85% 4.65% 6.38%
Class A Shares @MOP -4.56% -6.34% -6.18% -0.61% 0.87% 4.14% 6.22%
Bloomberg Barclays U.S. Aggregate Bond Index 0.02% -1.60% -1.22% 1.31% 2.16% 3.77% 6.14%
Inception: Jul 07, 1987 3M YTD 1YR 3YR 5YR 10YR Since Inception
Class A Shares @NAV -1.15% -2.29% -1.99% 0.87% 1.51% 4.50% 6.33%
Class A Shares @MOP -5.83% -6.96% -6.68% -0.75% 0.52% 3.99% 6.16%
Bloomberg Barclays U.S. Aggregate Bond Index -0.84% -1.79% -1.34% 1.33% 2.03% 3.67% 6.10%
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold.
Maximum Offering Price (MOP) returns include the maximum sales charge of 4.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
View Fees and Expenses
Performance for Class A Shares that includes periods prior to 7/6/09 reflects the performance of one or more share classes of the Fund or a predecessor fund, adjusted, where applicable and permitted, for differing fees and expenses. See the Fund’s prospectus for further details concerning historical performance.

MORNINGSTAR PERCENTILE

(As of 09/30/2018)
(As of 11/30/2018)
1 YR 3 YR 5 YR 10 YR SINCE INCEPTION
Percentile Ranking (%) 71 77 69 34 19
Intermediate-Term Bond Category
Rank/Count
710/1076 751/987 654/939 295/826 43/198
1 YR 3 YR 5 YR 10 YR SINCE INCEPTION
Percentile Ranking (%) 78 82 75 51 20
Intermediate-Term Bond Category
Rank/Count
778/1051 774/960 689/918 457/806 43/199

CALENDAR YEAR PERFORMANCE

GROWTH OF A $10,000 HYPOTHETICAL INVESTMENT

Source: Morningstar, Inc.
This graph compares fund performance to that of the fund’s Morningstar category average and benchmark(s).

RETURNS-BASED STATISTICS

(As of 11/30/18 CLASS I SHARES)

RISK / REWARD
VS. BLOOMBERG BARCLAYS U.S. AGGREGATE BOND INDEX

3 YEAR 5 YEAR
Information Ratio -0.18 -0.34
Alpha 0.04 0.02
Tracking Error 0.60 0.65
Beta 0.88 0.88
R-Squared (%) 95.67 94.70

UP AND DOWN MARKET CAPTURE (%)
VS. BLOOMBERG BARCLAYS U.S. AGGREGATE BOND INDEX

3 YEAR 5 YEAR
Up Capture Ratio 89.15 88.44
Down Capture Ratio 88.36 88.42

STANDARD DEVIATION

3 YEAR 5 YEAR
Flexible Bond Fund 2.46 2.46
Bloomberg Barclays U.S. Aggregate Bond Index 2.72 2.71

SHARPE RATIO

3 YEAR 5 YEAR
Flexible Bond Fund 0.12 0.51
Bloomberg Barclays U.S. Aggregate Bond Index 0.15 0.54

ANNUAL FEES & EXPENSES

(As of Fiscal Year End, 06/30/18)

CLASS A SHARES
Management Fees 0.40%
12b-1 Fees 0.25%
Other Expenses 0.30%
Total Gross Expenses 0.95%
Waivers -0.04%
Total Net Expenses 0.91%
Information Regarding Sales Charge Reductions and Waivers
Net expense ratios reflect the expense waiver, if any, contractually agreed to through 11/1/19.

Characteristics

TOP HOLDINGS

(As of 11/30/2018)

% of Fund
United States Treasury Note/Bond, 3.12%, 11/15/28 4.11
United States Treasury Note/Bond, 2.88%, 08/15/28 2.44
United States Treasury Note/Bond, 2.88%, 10/31/23 2.07
United States Treasury Note/Bond, 2.75%, 11/15/47 2.05
United States Treasury Note/Bond, 2.88%, 09/30/23 1.94
United States Treasury Note/Bond, 3.00%, 08/15/48 1.58
Freddie Mac Gold Pool, 4.50%, 08/01/48 1.34
United States Treasury Note/Bond, 3.38%, 11/15/48 1.03
United States Treasury Note/Bond, 3.00%, 02/15/48 0.92
BBCMS 2018-TALL Mortgage Trust, 3.03%, 03/15/37 0.91
TOTAL 18.39

PORTFOLIO CHARACTERISTICS

(As of 11/30/18)

FUND INDEX
Number of Holdings
Debt Issues
456
10194
Portfolio Turnover Rate
(1-year trailing)
213.59%
-
Weighted Average Maturity
(years)
8.96
8.22
Effective Duration
(years)
5.45
5.88

DEVELOPED VS. EMERGING MARKET

(As of 11/30/18)

% OF FUND % OF INDEX
U.S. 91.36 91.65
Non-U.S. Developed 7.96 5.22
Non-U.S. Emerging 0.05 1.61
Cash & Equivalents 0.63 -

CREDIT QUALITY OF FIXED INCOME HOLDINGS

(As of 11/30/18)

% OF FUND % OF INDEX
Aaa 52.90 72.64
Aa 1.14 3.68
A 4.87 10.40
Baa 24.74 13.28
Ba 11.62 -
B 2.54 -
NOT RATED 1.56 -
Bond credit quality ratings provided by Barclays and reflect the middle rating received from Moody's, Standard & Poor's and Fitch, where all three agencies have provided a rating. If only two agencies rate a security, the lowest rating is used. If only one agency rates a security, that rating is used. Ratings are measured on a scale that ranges from Aaa (highest) to D (lowest).

SECTOR ALLOCATION

(As of 11/30/18)

% OF FUND % OF INDEX
MBS 25.71 28.36
Credit-Investment Grade 25.69 24.43
Treasuries 18.72 38.47
ABS 9.53 0.55
Credit-High Yield 8.78 -
Bank Loans 4.92 -
CMBS 3.66 1.92
CMO 2.08 -
Government Related 0.28 5.33
Cash & Equivalents 0.63 -

MATURITY BREAKDOWN OF FIXED INCOME HOLDINGS

(As of 11/30/18)

% OF FUND % OF INDEX
< 1 yr 1.56 0.96
1 - 3 yrs 12.43 21.90
3 - 5 yrs 15.97 17.97
5 - 7 yrs 20.07 14.03
7 - 10 yrs 31.20 29.60
10 - 20 yrs 7.74 3.77
> 20 yrs 10.40 11.77

REGIONAL ALLOCATION

(As of 11/30/18)

% OF FUND % OF INDEX
North America 97.88 92.82
Europe 1.27 3.28
Africa/Mideast 0.22 0.05
Cash & Equivalents 0.63 -

Commentary & Literature

3Q18 Portfolio Commentary Highlights

  • The Fund outperformed its benchmark during the quarter
  • Our out-of-index allocation to high-yield corporate bonds led outperformance.
  • We remain constructive on the U.S. economy and intend to remain opportunistic; however, given the late stages of the credit cycle, we believe some caution is warranted.

Read The Full Commentary