NEW YORK, July 18, 2012 /PRNewswire/ --M.D. Sass Investors Services, Inc. ("M.D. Sass") is pleased to share that the M.D. Sass 1-3 Year Duration U.S. Agency Bond Fund (the "Fund" - ticker: MDSIX), which started one year ago, ranked #2 among 83 mutual funds in the Lipper Short U.S. Government Funds category for the one year ending June 30th, 2012. Launched on June 30, 2011 with the aim of being a value-added alternative to money-market securities, certificates of deposit, and corporate, municipal and other government bonds, the Fund targets 100% in the highest yielding U.S. Government and U.S. Government Agency-Backed securities with 1 to 3 year durations; thereby investing only in high quality securities and seeking to minimize interest rate risk. Notably, the Fund achieved this ranking while the Lipper category includes funds that can allocate up to 35% of their assets to securities that have not been issued or guaranteed by the U.S. government, its agencies, or its instrumentalities. The fund ranked #1 among the 83 mutual funds in the Lipper Short U.S. Government Funds category allocated a portion to non U.S. Government issues.
Through rigorous analysis, M.D. Sass selects only highly liquid securities with quantifiable stable cash flows and stress tests the portfolio under extreme adverse economic and market conditions in seeking to identify, measure and control risks. MDSIX builds on M.D. Sass' 19 year record of managing similar fixed income portfolios for institutional investors. For the one year period ending June 30th, 2012 (and since the Fund's inception on June 30, 2011), MDSIX increased +2.87% (the gross expense ratio for MDSIX is 0.67%) vs. a +1.09% return for the Lipper Short U.S. Government Funds Category average and a +0.79% return for the BofA/Merrill Lynch 1-3 Year U.S. Treasury Index. The Fund's return during the period was driven by the attractive yields on most of our fund holdings combined with our ability to find undervalued securities. Notably, at 6/30/12, the Institutional Fund's 30 Day SEC Yield was +1.32% compared to the BofA/Merrill Lynch 1-3 Year U.S. Treasury Index's +0.34% yield. At the same time, these returns and yields were produced while maintaining a focus on short-term, government backed securities. The Institutional Fund's Effective Duration at 6/30/12 was 1.33 years.
For more information on the M.D. Sass 1-3 Year Duration U.S. Agency Bond Fund, please contact your Relationship Manager, Sass Client Services (212-710-5010 / firstname.lastname@example.org) or visit www.mdsassfunds.com.
About M.D. Sass
M.D. Sass has been a leading name in investment management for 40 years. Today, M.D. Sass and its affiliates employ a staff of over 110 people managing approximately $8 billion across a range of traditional and alternative strategies. Our clients include some of the world's largest financial institutions, state and local governments, Fortune 500 and other corporations, endowment funds, foundations, Taft Hartley funds and high net worth individuals.
Performance data quoted represents past performance and 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. Fund performance current to the most recent month-end may be lower or higher than the performance quoted and can be obtained by calling 1-855-637-3863.
Lipper Short U.S. Government Funds Category: The Lipper Short U.S. Government Funds Category is made up of Funds who invests at least 65% of assets in securities issued or guaranteed by the U.S. government, its agencies, or its instrumentalities, with dollar-weighted average maturities of less than three years.
Cash Flow: Represents interest and principal payments of the underlying securities. For principal, it includes both scheduled and unscheduled (i.e. prepayment) return of principal.
BofA/Merrill Lynch 1-3 Year Treasury Index: The BofA Merrill Lynch 1-3 US Year Treasury Index is an unmanaged index that tracks the performance of the direct sovereign debt of the U.S. Government having a maturity of at least one year and less than three years. It is not possible to invest directly in an unmanaged index.
Effective Duration: A duration calculation for bonds with embedded options. Effective duration takes into account that expected cash flows will fluctuate as interest rates change.
The Fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The Fund's prospectus contains this and other important information about the investment company, and it may be obtained by calling 1-855-MDS-FUND (637-3863) or visiting www.mdsass.com. Please read it carefully before you invest..
Mutual fund investing involves risk. Principal loss is possible. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. However, the Fund only intends to invest in 1 to 3 year duration securities. Investments in U.S. Agency Mortgage Backed Securities include additional risks that investors should be aware of such as prepayment risk, extension risk, and possible illiquidity.
The Fund is distributed by Quasar Distributors, LLC.
SOURCE M.D. Sass Investors Services