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Summary
- The fund posted returns of 2.52% (Institutional shares) and 2.56% (Investor A shares, without sales charge) for the third quarter of 2025.
- Quality investment grade securities did well, while holdings of non-investment grade securities had mixed performance.
- Duration (interest rate sensitivity) of 6.90 years was 0.11 years above the benchmark, while 18.2% of securities were exposed to alternative minimum tax.
Moham…
Summary
- The fund posted returns of 2.52% (Institutional shares) and 2.56% (Investor A shares, without sales charge) for the third quarter of 2025.
- Quality investment grade securities did well, while holdings of non-investment grade securities had mixed performance.
- Duration (interest rate sensitivity) of 6.90 years was 0.11 years above the benchmark, while 18.2% of securities were exposed to alternative minimum tax.
Mohamad Faizal Bin Ramli/iStock via Getty Images
Commentary as of 09/30/25
The fund posted returns of 2.52% (Institutional shares) and 2.56% (Investor A shares, without sales charge) for the third quarter of 2025.
Quality investment grade securities did well, while
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Quick Insights
A longer duration and overweight allocations to prepaid gas and corporate-backed municipals enhanced returns, though negatively convex structures and select high-yield bonds detracted.
The fund is positioned at the longer end of the intermediate range, targeting attractive absolute and relative valuations to capitalize on positive return potential for the rest of 2025.
A 3.3% cash reserve posed opportunity costs during rising bond prices, and negatively convex holdings underperformed as rates fell, though quality bias and sector overweights offset these effects.