Thoughts and Bonds: The Beginning of the End
Our Fundamental Fixed Income team provides insights on potential investment risks and opportunities, and shares our global outlook for the quarter ahead.
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JSHIX
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Short-Term Bond Fund
25 Years of Fundamental Fixed Income Investing
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Overview
Client Commitment
This dynamic, short duration bond fund seeks risk-adjusted returns and capital preservation. Our approach leverages a bottom-up, fundamentally driven investment process.
Why Invest in the Fund
- The Fund emphasizes risk-adjusted returns and capital preservation while seeking to identify the best opportunities across fixed income sectors using a bottom-up, fundamentally driven investment process.
- 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.
- 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.
Dynamic Core Short-Duration Bond Holding
Integrated Research
Sophisticated Risk Management
Portfolio Management
Featured Insights
Performance
RETURNS
| Inception: Sep 01, 1992 | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inception |
|---|---|---|---|---|---|---|---|
| Short-Term Bond Fund – I Shares | 0.59% | 3.56% | 3.86% | 1.84% | 1.61% | 2.06% | 3.70% |
| Bloomberg Barclays 1-3 Year U.S. Government/Credit Index | 0.69% | 3.42% | 4.64% | 1.82% | 1.59% | 1.52% | 3.80% |
| Inception: Sep 01, 1992 | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inception |
|---|---|---|---|---|---|---|---|
| Short-Term Bond Fund – I Shares | 0.59% | 3.56% | 3.86% | 1.84% | 1.61% | 2.06% | 3.70% |
| Bloomberg Barclays 1-3 Year U.S. Government/Credit Index | 0.69% | 3.42% | 4.64% | 1.82% | 1.59% | 1.52% | 3.80% |
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.
View Fees and Expenses
Performance for Class I 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.
View Fees and Expenses
Performance for Class I 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.
CALENDAR YEAR PERFORMANCE
RETURNS-BASED STATISTICS
(As of 08/31/19 CLASS I SHARES)
RISK / REWARD
|
3 YEAR | 5 YEAR |
|---|---|---|
| Information Ratio | 0.08 | -0.07 |
| Alpha | 0.52 | 0.25 |
| Tracking Error | 0.78 | 0.75 |
| Beta | 0.75 | 0.81 |
| R-Squared (%) | 49.72 | 50.79 |
UP AND DOWN MARKET CAPTURE (%)
|
3 YEAR | 5 YEAR |
|---|---|---|
| Up Capture Ratio | 96.13 | 98.56 |
| Down Capture Ratio | 68.78 | 103.57 |
STANDARD DEVIATION |
3 YEAR | 5 YEAR |
|---|---|---|
| Short-Term Bond Fund | 1.05 | 1.04 |
| Bloomberg Barclays 1-3 Year U.S. Government/Credit Index | 0.98 | 0.92 |
SHARPE RATIO |
3 YEAR | 5 YEAR |
|---|---|---|
| Short-Term Bond Fund | 0.44 | 0.59 |
| Bloomberg Barclays 1-3 Year U.S. Government/Credit Index | 0.41 | 0.72 |
ANNUAL FEES & EXPENSES(As of Fiscal Year End, 06/30/18) |
CLASS I SHARES |
|---|---|
| Management Fees | 0.44% |
| 12b-1 Fees | - |
| Other Expenses | 0.13% |
| Total Gross Expenses | 0.57% |
| Waivers | -0.05% |
| Total Net Expenses | 0.52% |
Net expense ratios reflect the expense waiver, if any, contractually agreed to through 11/1/19.
Characteristics
Index represents the Bloomberg Barclays 1-3 Year U.S. Government/Credit Index.
TOP HOLDINGS(As of 08/31/2019) |
% of Fund |
|---|---|
| United States Treasury Note/Bond, 2.50%, 02/28/21 | 6.08 |
| United States Treasury Note/Bond, 2.25%, 04/30/24 | 5.11 |
| United States Treasury Note/Bond, 1.75%, 06/15/22 | 3.25 |
| United States Treasury Note/Bond, 2.62%, 12/15/21 | 2.20 |
| United States Treasury Note/Bond, 2.00%, 05/31/24 | 2.00 |
| Kinder Morgan Inc/DE, 3.05%, 12/01/19 | 2.00 |
| United States Treasury Note/Bond, 1.75%, 06/30/24 | 2.00 |
| Citigroup Inc, 2.45%, 01/10/20 | 1.94 |
| United States Treasury Note/Bond, 2.25%, 03/31/21 | 1.87 |
| United States Treasury Note/Bond, 2.50%, 12/31/20 | 1.78 |
| TOTAL | 28.23 |
PORTFOLIO CHARACTERISTICS(As of 08/31/19) |
FUND | INDEX |
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DEVELOPED VS. EMERGING MARKET(As of 08/31/19) |
% OF FUND | % OF INDEX |
|---|---|---|
| U.S. | 89.76 | 87.99 |
| Non-U.S. Developed | 9.24 | 7.54 |
| Non-U.S. Emerging | 0.30 | 0.94 |
| Cash & Equivalents | 0.70 | - |
CREDIT QUALITY OF FIXED INCOME HOLDINGS(As of 08/31/19) |
% OF FUND | % OF INDEX |
|---|---|---|
| Aaa | 36.36 | 73.59 |
| Aa | 5.09 | 5.32 |
| A | 11.99 | 11.08 |
| Baa | 27.51 | 10.00 |
| Ba | 15.99 | 0.01 |
| B | 1.49 | - |
| NOT RATED | 0.87 | - |
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 08/31/19) |
% OF FUND | % OF INDEX |
|---|---|---|
| Credit-Investment Grade | 38.00 | 23.44 |
| Treasuries | 28.58 | 66.43 |
| Credit-High Yield | 16.38 | 0.01 |
| ABS | 12.28 | - |
| Bank Loans | 1.87 | - |
| CMO | 1.36 | - |
| Government Related | 0.43 | 9.59 |
| CMBS | 0.40 | - |
| Cash & Equivalents | 0.70 | - |
MATURITY BREAKDOWN OF FIXED INCOME HOLDINGS(As of 08/31/19) |
% OF FUND | % OF INDEX |
|---|---|---|
| < 1 yr | 23.41 | 4.34 |
| 1 - 3 yrs | 53.48 | 95.66 |
| 3 - 5 yrs | 18.63 | - |
| 5 - 7 yrs | 3.78 | - |
REGIONAL ALLOCATION(As of 08/31/19) |
% OF FUND | % OF INDEX |
|---|---|---|
| North America | 92.84 | 89.64 |
| Europe | 3.89 | 4.69 |
| Asia/Pacific Ex Japan | 1.29 | 0.86 |
| Japan | 0.98 | 0.83 |
| Africa/Mideast | 0.30 | 0.03 |
| Cash & Equivalents | 0.70 | - |
Commentary & Literature
2Q19 Portfolio Commentary Highlights
- Both Treasuries and corporate credit performed well during the quarter as the Fed’s pivot to a more accommodative stance evolved into potential rate cuts in 2019.
- Our more conservative approach to interest rate risk relative to the benchmark led to underperformance, but the Fund did generate positive returns.
- Macro uncertainties, including slower global growth and trade tensions, will likely lead to more accommodative monetary policy from the Fed and other developed world central banks.