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Ivy Securian Core Bond Fund

  • $10.35 NAV as of 12/18/2018
  • ($0.02) / 0.19% Daily NAV Change
  • -1.15% YTD (NAV)

Summary

Credit investing for potential portfolio income

Credit quality
Holds primarily investment-grade securities, which may be attractive for those concerned about credit risk.
Diversification
A portfolio of corporate, government and mortgage-backed securities that seeks to provide income through monthly distributions.
Experienced management
Subadvised by Securian Asset Management, a firm that specializes in income-oriented strategies with an investment heritage dating back to 1880.

Morningstar Style Box

MOD
Medium
Source: Morningstar

Portfolio Management

Thomas Houghton, CFA

  • Securian Asset Management, Inc. (Sub-Adviser)
  • 13 Years with Fund
  • 25 Years in Industry
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Thomas Houghton is the primary manager of the corporate bond positions for all fixed income total return strategies at Securian, in addition to being the lead manager of the Securian Short Duration Bond Fund and the firm’s money market portfolios. Mr. Houghton has been active in the investment industry since 1993. He has focused on fixed income investments throughout his career, having held positions in portfolio management, fixed income analysis and trade desk management. He was previously affiliated with American Express Financial Advisors, before joining Securian in 1996. Mr. Houghton earned his BS, Business Administration and Accounting, as well as his MBA, from the University of Minnesota. He is a CFA charterholder.

Daniel Henken, CFA

  • Securian Asset Management, Inc. (Sub-Adviser)
  • 1 Year with Fund
  • 15 Years in Industry
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Daniel Henken manages fixed income assets for Advantus total return strategies. He has extensive experience researching investment grade and high yield corporate bonds. His responsibilities include fundamental industry and company analysis of current and prospective holdings, along with specific trade recommendations. In addition, he covers the technology, media and telecommunications sectors for all strategies within Advantus. Mr. Henken received a BA in Business from Ripon College. He earned his MBA with an emphasis in Investment Management from the University of Wisconsin-Milwaukee. He is a CFA charterholder and a member of the CFA Institute and CFA Society of Minnesota.

Lena Harhaj, CFA

  • Securian Asset Management, Inc. (Sub-Adviser)
  • <1 Year with Fund
  • 21 Years in Industry
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Lena Harhaj has extensive fixed income market experience, including a strong background with residential and nonresidential structured securities. As a member of the Securian Fixed Income Total Return Group, she is primarily responsible for the mortgage-backed and asset-backed positions for all fixed income total return strategies at Securian. She also co-manages the Securian Mortgage Securities and Securian Money Market strategies.Ms. Harhaj received a BS in Finance from the University of Minnesota. She is a CFA charterholder, and a member of the CFA Institute and CFA Society of Minnesota.

Growth of a $10,000 Investment
through 11/30/2018

Assumes an investment over 10 years or life of the share class, reinvestment of dividends and capital gains, and does not include the effect of sales charges or taxes.

Documents

Perspectives

Quarterly Fund Commentary

Daily Prices as of 12/18/2018

Net Asset Value (NAV) $10.35
Daily NAV Change ($) ($0.02) 0.19%
Weekly NAV Change ($) $0.02 0.19%
Public Offering Price (POP) $10.98

Fund Facts

Ticker Symbol IBOAX
CUSIP 465898344
Fund Code 646
Fund Type Fixed Income Funds
Fund Inception 8/14/1987
Class Inception 8/14/1987
Fiscal Year End March
Dividends Paid Daily, Paid Monthly
Fund Assets (as of 11/30/2018) $882.7 mil
Total Holdings (as of 11/30/2018) 444
Portfolio Turnover Rate (as of 9/30/2018) 45%
Morningstar Category Intermediate-Term Bond
Lipper Category Corporate Debt Funds A Rated
Benchmark Bloomberg Barclays US Agg Bond TR USD

Performance

Data quoted is past performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.

Performance at NAV does not include the effect of sales charges, if it had, performance shown would be lower. Class A shares, including sales charges, reflects the maximum applicable front-end sales load.

Monthly Rates of Return

Average Annual Total Returns as of 11/30/2018
(Returns for periods of less than 1-yr are not annualized)
 
Fund with 5.75% sales charge -7.54% -7.08% 0.20% 1.24% 4.22% 5.25%
Fund at NAV -1.87% -1.38% 2.20% 2.44% 4.84% 5.45%
Bloomberg Barclays US Agg Bond TR USD -1.79% -1.34% 1.33% 2.03% 3.67%
Morningstar Intermediate-Term Bond -1.75% -1.36% 1.52% 1.91% 4.49%

Quarterly Rates of Return

Average Annual Total Returns as of 9/30/2018
(Returns for periods of less than 1-yr are not annualized)
 
Fund with 5.75% sales charge -6.86% -6.22% 0.35% 1.57% 3.76% 5.31%
Bloomberg Barclays US Agg Bond TR USD -1.60% -1.22% 1.31% 2.16% 3.77%
Morningstar Intermediate-Term Bond -1.37% -1.06% 1.65% 2.14% 4.21%
Fund at NAV -1.15% -0.48% 2.35% 2.78% 4.37% 5.51%

Calendar Year Return

Indexes 2013
Bloomberg Barclays US Agg Bond TR USD 3.54 2.65 0.55 5.97 -2.02
Class A 5.05 4.21 -0.31 5.91 -0.94

Morningstar Ratings as of 11/30/2018 Morningstar Logo

Category: Intermediate-Term Bond
Ratings are based on risk-adjusted returns
Overall out of 875
3 Year out of 875
5 Year out of 776
10 Year out of 562

Morningstar Ranking as of 11/30/2018 Morningstar Logo

Category: Intermediate-Term Bond
 
Morningstar Ranking / # of Funds in Category displays the fund's actual rank within its Morningstar Category based on average annual total return and number of Funds in that Category. The Morningstar Percentile Ranking compares a Fund's Morningstar risk and return scores with all the Funds in the same Category, where 1% = Best and 100% = Worst.
1 Year 391/1024 44
3 Year 129/875 16
5 Year 145/776 20
10 Year 214/562 38

Expense Ratios as of 7/31/2018

Net 1.04%
Gross 1.07%

5-Year Standard Deviation as of 11/30/2018

Bloomberg Barclays US Agg Bond TR USD 2.71

5-Year MPT* Statistics as of 11/30/2018

*Modern Portfolio Theory
Alpha 0.48
Beta 0.94
R-Squared 92.03
Sharpe Ratio 0.70
Capture Ratio Upside: 102.02%
Downside: 88.85%

Distributions

Historical Prices Inception 8/14/1987

12/3/2018 $10.31 NO NO
12/4/2018 $10.33 NO NO
12/6/2018 $10.32 NO NO
12/7/2018 $10.34 NO NO
12/10/2018 $10.34 NO NO
12/11/2018 $10.33 NO NO
12/12/2018 $10.31 NO NO
12/13/2018 $10.31 NO NO
12/14/2018 $10.32 NO NO
12/17/2018 $10.33 NO NO
12/18/2018 $10.35 NO NO

Historical Distributions Inception 8/14/1987

11/27/2018 $0.0259 Long: $0.000 Short: $0.000 $10.29 11/27/2018
10/26/2018 $0.0264 Long: $0.000 Short: $0.000 $10.35 10/26/2018
9/27/2018 $0.0271 Long: $0.000 Short: $0.000 $10.42 9/27/2018
8/27/2018 $0.0241 Long: $0.000 Short: $0.000 $10.5 8/27/2018
7/27/2018 $0.0268 Long: $0.000 Short: $0.000 $10.45 7/27/2018
6/27/2018 $0.026 Long: $0.000 Short: $0.000 $10.48 6/27/2018
5/25/2018 $0.0242 Long: $0.000 Short: $0.000 $10.48 5/25/2018
4/27/2018 $0.0272 Long: $0.000 Short: $0.000 $10.47 4/27/2018
3/27/2018 $0.0234 Long: $0.000 Short: $0.000 $10.55 3/27/2018
2/27/2018 $0.0247 Long: $0.000 Short: $0.000 $10.54 2/27/2018
1/26/2018 $0.0207 Long: $0.000 Short: $0.000 $10.69 1/26/2018
12/29/2017 $0.0279 Long: $0.000 Short: $0.000 $10.77 12/29/2017
11/27/2017 $0.0223 Long: $0.000 Short: $0.000 $10.78 11/27/2017
10/27/2017 $0.0241 Long: $0.000 Short: $0.000 $10.75 10/27/2017
9/27/2017 $0.0248 Long: $0.000 Short: $0.000 $10.77 9/27/2017
8/25/2017 $0.0232 Long: $0.000 Short: $0.000 $10.82 8/25/2017
7/27/2017 $0.023 Long: $0.000 Short: $0.000 $10.76 7/27/2017
6/27/2017 $0.0251 Long: $0.000 Short: $0.000 $10.77 6/27/2017
5/26/2017 $0.0272 Long: $0.000 Short: $0.000 $10.73 5/26/2017
4/27/2017 $0.0237 Long: $0.000 Short: $0.000 $10.68 4/27/2017
3/27/2017 $0.0209 Long: $0.000 Short: $0.000 $10.62 3/27/2017
2/27/2017 $0.0242 Long: $0.000 Short: $0.000 $10.64 2/27/2017
1/27/2017 $0.0206 Long: $0.000 Short: $0.000 $10.56 1/27/2017
12/30/2016 $0.0276 Long: $0.000 Short: $0.000 $10.53 12/30/2016
11/30/2016 $0.0035 Long: $0.000 Short: $0.000 $10.51 11/30/2016
11/25/2016 $0.0222 Long: $0.000 Short: $0.000 $10.51 11/25/2016
10/27/2016 $0.02 Long: $0.000 Short: $0.000 $10.78 10/27/2016
9/27/2016 $0.022 Long: $0.000 Short: $0.000 $10.87 9/27/2016
8/26/2016 $0.0227 Long: $0.000 Short: $0.000 $10.84 8/26/2016
7/27/2016 $0.0207 Long: $0.000 Short: $0.000 $10.84 7/27/2016
6/27/2016 $0.0195 Long: $0.000 Short: $0.000 $10.75 6/27/2016
5/27/2016 $0.0241 Long: $0.000 Short: $0.000 $10.59 5/27/2016
4/27/2016 $0.0213 Long: $0.000 Short: $0.000 $10.56 4/27/2016
3/24/2016 $0.0174 Long: $0.000 Short: $0.000 $10.48 3/24/2016
2/26/2016 $0.0206 Long: $0.000 Short: $0.000 $10.43 2/26/2016
1/27/2016 $0.0164 Long: $0.000 Short: $0.000 $10.39 1/27/2016
12/31/2015 $0.0262 Long: $0.000 Short: $0.000 $10.35 12/31/2015
11/27/2015 $0.0266 Long: $0.000 Short: $0.000 $10.44 11/27/2015
10/27/2015 $0.0215 Long: $0.000 Short: $0.000 $10.55 10/27/2015
9/25/2015 $0.0219 Long: $0.000 Short: $0.000 $10.51 9/25/2015
8/27/2015 $0.0222 Long: $0.000 Short: $0.000 $10.51 8/27/2015
7/27/2015 $0.0197 Long: $0.000 Short: $0.000 $10.57 7/27/2015
6/26/2015 $0.0228 Long: $0.000 Short: $0.000 $10.51 6/26/2015
5/27/2015 $0.022 Long: $0.000 Short: $0.000 $10.69 5/27/2015
4/27/2015 $0.0202 Long: $0.000 Short: $0.000 $10.79 4/27/2015
3/27/2015 $0.0184 Long: $0.000 Short: $0.000 $10.76 3/27/2015
2/27/2015 $0.0233 Long: $0.000 Short: $0.000 $10.76 2/27/2015
1/27/2015 $0.0171 Long: $0.000 Short: $0.000 $10.78 1/27/2015
12/31/2014 $0.0236 Long: $0.000 Short: $0.000 $10.64 12/31/2014
11/26/2014 $0.0213 Long: $0.000 Short: $0.000 $10.65 11/26/2014
10/27/2014 $0.0199 Long: $0.000 Short: $0.000 $10.66 10/27/2014
9/26/2014 $0.0227 Long: $0.000 Short: $0.000 $10.56 9/26/2014
8/27/2014 $0.0228 Long: $0.000 Short: $0.000 $10.67 8/27/2014
7/25/2014 $0.0198 Long: $0.000 Short: $0.000 $10.64 7/25/2014
6/27/2014 $0.0253 Long: $0.000 Short: $0.000 $10.64 6/27/2014
5/27/2014 $0.0221 Long: $0.000 Short: $0.000 $10.62 5/27/2014
4/25/2014 $0.0234 Long: $0.000 Short: $0.000 $10.52 4/25/2014
3/27/2014 $0.0204 Long: $0.000 Short: $0.000 $10.47 3/27/2014
2/27/2014 $0.0249 Long: $0.000 Short: $0.000 $10.49 2/27/2014
1/27/2014 $0.0179 Long: $0.000 Short: $0.000 $10.4 1/27/2014

*Special Dividend
The table includes the daily prices at NAV (net asset value) for the history of this fund's selected share class. NAV is the amount per share you would receive if you sold shares that day.

12-Month Trailing Dist. Yield as of 11/30/2018

NAV 2.96%
With Sales Charge 2.79%

Annualized 30-Day SEC Yield as of 11/30/2018

Subsidized - NAV 3.01%
Unsubsidized - NAV 3.01%

Portfolio

Top 10 Holdings as a % of net assets 11/30/2018

U.S. 5-Year Treasury Note, 4/3/2019 10.48%
U.S. 30-Year Treasury Bond, 3/20/2019 8.88%
Sonoco Products Co., 2.4%, 12/3/2018 1.74%
U.S. Treasury Bonds, 3.0%, 8/15/2048 1.62%
U.S. Treasury Bonds, 3.0%, 2/15/2048 1.45%
U.S. Treasury Notes, 2.9%, 9/30/2023 1.44%
Citizens Bank N.A. (3-Month U.S. LIBOR plus 95 bps), 3.3%, 3/29/2023 1.18%
Citigroup Commercial Mortgage Trust, Commercial Mortgage , 3.1%, 12/15/2036 1.13%
Invitation Homes Trust, Series 2018-SFR4, Class C, 3.7%, 1/17/2038 1.09%
PPL Capital Funding, Inc. (GTD by PPL Corp.) (3-Month LIB, 5.1%, 3/30/2067 1.05%

Total Portfolio Holdings

Updated quarterly, upon availability.

Maturity
as a % of fixed income assets as of 11/30/2018

<1 Year 3.7%
1-5 Years 34.6%
5-10 Years 38.1%
10-20 Years 5.3%
>20 Years 18.3%
Average Maturity 4.25 years
Effective Duration 5.73 years

Fixed Income Country Allocation
as a % of bond holdings as of 11/30/2018

United States 97.5%
Canada 1.3%
Bermuda 0.5%
United Kingdom 0.4%
Japan 0.3%
Australia 0.0%

Quality
as a % of fixed income assets as of 11/30/2018

Quality: Our preference is to always use ratings obtained from Standard & Poor's, Moody’s, and Fitch. It is each Portfolio’s general policy to classify such security at the lower rating level if only two ratings are available. If more than two ratings are available and a median exists, the median is used. If more than two ratings exist without a median, the lower of the two middle ratings is used. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.
Government Bonds 26.40%
NonRated 2.70%
AAA 10.40%
AA 6.80%
A 13.50%
BBB 32.80%
BB 7.10%
B 0.30%
CCC 0.00%
Below CCC 0.00%

Portfolio Composition
as a % of net assets as of 11/30/2018

Corporate Bonds 34.92%
Government Bonds 25.85%
Asset-Backed Securities 18.48%
Mortgage-Backed Securities 17.46%
Cash and Cash Equivalents 1.80%
Revenue Bonds 1.22%
Preferred Stock 0.27%

Total Portfolio Holdings

Updated quarterly, upon availability.

Data quoted is past performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.

Risk Factors: The value of the Fund's shares will change, and you could lose money on your investment. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Fixed income securities are subject to interest rate risk and, as such, the net asset value of the fund may fall as interest rates rise. Investing in below investment grade securities may carry a greater risk of nonpayment of interest or principal than higher-rated bonds. These and other risks are more fully described in the Fund's prospectus. Not all funds or fund classes may be offered at all broker/ dealers.

Index Description: The Bloomberg Barclays U.S. Aggregate Bond TR USD Index - A market capitalization-weighted index, representing most U.S. traded investment grade bonds. It is not possible to invest directly in an index.

Performance results for some funds may include the effect of expense reduction arrangements. If those arrangements had not been in place, the performance results would have been lower.

Fee Waiver and/or Expense Reimbursement: Through July 31, 2019, Ivy Investment Management Company (IICO), the Fund’s investment manager, Ivy Distributors, Inc. (IDI), the Fund’s distributor, and/or Waddell & Reed Services Company, doing business as WI Services Company (WISC), the Fund’s transfer agent, have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) as follows: Class E shares at 1.01%; and Class I shares and Class N shares at 0.54%. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees (Board).

Fee Waiver and/or Expense Reimbursement: Through July 31, 2019, IDI and/or WISC have contractually agreed to reimburse sufficient 12b-1 and/or shareholder servicing fees to ensure that the total annual ordinary fund operating expenses of the Class Y shares do not exceed the total annual ordinary fund operating expenses of the Class A shares, as calculated at the end of each month. Prior to that date, the expense limitation may not be terminated without the consent of the Board.

Due to a separate contractual class waiver, certain common expenses applicable to all share classes also may be waived to cap total annual ordinary fund operating expenses, which may serve to reduce the expense ratio of certain share classes.

Effective Apr. 30, 2018, Ivy Advantus Bond Fund was renamed Ivy Securian Core Bond Fund.

Fee Waiver and/or Expense Reimbursement: Through July 31, 2019, Ivy Investment Management Company (IICO), the Fund’s investment manager, Ivy Distributors, Inc. (IDI), the Fund’s distributor, and/or Waddell & Reed Services Company, doing business as WI Services Company (WISC), the Fund’s transfer agent, have contractually agreed to reimburse sufficient management fees, 12b-1 fees and/or shareholder servicing fees to cap the total annual ordinary fund operating expenses (which would exclude interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses, if any) as follows: Class E shares at 1.01%; and Class I shares and Class N shares at 0.54%. Prior to that date, the expense limitation may not be terminated without the consent of the Board of Trustees (Board).

Fee Waiver and/or Expense Reimbursement: Through July 31, 2019, IDI and/or WISC have contractually agreed to reimburse sufficient 12b-1 and/or shareholder servicing fees to ensure that the total annual ordinary fund operating expenses of the Class Y shares do not exceed the total annual ordinary fund operating expenses of the Class A shares, as calculated at the end of each month. Prior to that date, the expense limitation may not be terminated without the consent of the Board.

Due to a separate contractual class waiver, certain common expenses applicable to all share classes also may be waived to cap total annual ordinary fund operating expenses, which may serve to reduce the expense ratio of certain share classes.

Pricing: All prices and year-to-date returns are based on closing quotes unless noted, as supplied to the NASDAQ by 6:00 p.m. Eastern time. YTD Prices can be updated 3 to 4 hours after the Daily Pricing information which can result in mismatching data.

Style Analysis: The Morningstar Style Box reveals a fund's investment style. 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 the following Nationally Recognized Statistical Rating Organizations (NRSROs): Moody's, Standard & Poor's, Fitch, and Egan-Jones. 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 style box 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 is 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 Morningstar's 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.

Unsubsidized yields reflect what the yield would have been without the effect of reimbursements and waivers. The adviser and its affiliates have or may voluntarily waive a portion of their fees (including, but not limited to, distribution and service (12b-1) fees) and reimburse certain expenses. There is no guarantee that the fund will avoid a negative yield. Such undertaking may be amended or withdrawn at any time.

30-Day SEC Yield: is calculated based on a formula mandated by the Securities and Exchange Commission (SEC) that calculates a fund's hypothetical annualized income, as a percentage of its assets. A security's income, for the purposes of this calculation, is based on the current market yield to maturity (in the case of bonds) or projected dividend yield (for stocks) of the fund's holdings over a trailing 30 day period. This hypothetical income will differ (at times, significantly) from the fund's actual experience; as a result, income distributions from the fund may be higher or lower than implied by the SEC yield.

12-Month Trailing Distribution Yield: at NAV refers to the 12-month historical cash flow paid over the past 12 months in dividends, divided by the past months ending NAV.

Alpha, Beta, R-Squared, Standard Deviation, Sharpe Ratio and Capture Ratio are 5 year statistics. Alpha is a measure of a fund's actual returns and expected performance, given its level of risk (as measured by beta). Beta reflects the sensitivity of the fund's return to fluctuations in the market index. R-squared indicates how much of a fund's fluctuations were attributable to movements in the fund's benchmark. Standard deviation is a measure of how volatile a fund's returns are. Sharpe ratio is a measure of a fund's risk-adjusted performance. Capture ratio reflects the annualized product of fund vs. index returns for all months in which the index had a positive return (upside capture) or negative return (downside capture).

The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance, and does not include the effects of sales charges. The top 10% of products in each product 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. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

© 2018 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. Past performance is no guarantee of future results.

Quality: Our preference is to always use ratings obtained from Standard & Poor's, Moody’s, and Fitch. It is each Portfolio’s general policy to classify such security at the lower rating level if only two ratings are available. If more than two ratings are available and a median exists, the median is used. If more than two ratings exist without a median, the lower of the two middle ratings is used. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.

Information is subject to change and is not intended to represent any past or future investment recommendations.

David Land served as a portfolio manager on the Fund until May 11, 2018.

YTD Prices can be updated 3 to 4 hours after the Daily Pricing information which can result in mismatching data.