Tippapatt/iStock via Getty Images The fund posted returns of 1.88% (Institutional shares) and 1.81% (Investor A shares, without sales charge) for the fourth quarter of 2025. Long duration (high interest rate sensitivity) and yield curve positioning, coupled with strong selection in the health care, transportation, and education sectors, drove the fund's positive performance. Idiosyncratic position...
Tippapatt/iStock via Getty Images The fund posted returns of 1.88% (Institutional shares) and 1.81% (Investor A shares, without sales charge) for the fourth quarter of 2025. Long duration (high interest rate sensitivity) and yield curve positioning, coupled with strong selection in the health care, transportation, and education sectors, drove the fund's positive performance. Idiosyncratic positions and modest allocation effects, including underweight positions in the tax-backed sectors, detracted amid outflows at quarter-end and market volatility. The fund had overweight positions in long maturity and positively convex (the rate at which duration changes in response to interest rate movements) bonds, and maintained significant allocations to the health care, transportation, and education sectors. It had underweight positions in short maturity bonds and tax-backed state credits, which reflected a focus on yield, credit quality, and sector resilience. Contributors Strong security selection in the health care, transportation, and education sectors was the primary driver of positive performance. The fund's long duration and yield curve positioning benefited from the Federal Reserve's (Fed) dovish policy shift and the subsequent rate rally. An exposure to resilient Pennsylvania credits and diversified allocations across essential service sectors further supported returns. Active management of portfolio structure and reinvestment of cash flows maximized income during a period of robust supply and demand and favorable credit conditions. Detractors Weak performance was primarily driven by underweight positions in bonds maturing in 15 or fewer years, which performed well during the quarter. Modest negative contributions also resulted from select sector allocations, particularly an underweight exposure to tax-backed state bonds. Additionally, short call bonds performed weakly in the market rally, which further detracted from results. Further insight The fund's solid quarterly...
Nasa announced on Tuesday it has cancelled plans to deploy a space station in lunar orbit and would instead use components from the project to build a US$20 billion base on the moon’s surface, while also planning to send a nuclear-powered spacecraft to Mars. US space agency chief Jared Isaacman, an appointee of US President Donald Trump who took charge at Nasa in December, announced an unprecede...
Nasa announced on Tuesday it has cancelled plans to deploy a space station in lunar orbit and would instead use components from the project to build a US$20 billion base on the moon’s surface, while also planning to send a nuclear-powered spacecraft to Mars. US space agency chief Jared Isaacman, an appointee of US President Donald Trump who took charge at Nasa in December, announced an unprecedented array of changes to the Artemis moon programme that would expand humanity’s footprint in space,...
BTS member Jin’s absence from the credits of the group’s latest album has sparked a debate among fans after what has been seen as a tense moment during a live broadcast went viral. BTS held a full-group live stream last Friday to celebrate the release of their fifth full-length album, Arirang, where members discussed the production process and revealed some behind-the-scenes stories. During the br...
BTS member Jin’s absence from the credits of the group’s latest album has sparked a debate among fans after what has been seen as a tense moment during a live broadcast went viral. BTS held a full-group live stream last Friday to celebrate the release of their fifth full-length album, Arirang, where members discussed the production process and revealed some behind-the-scenes stories. During the broadcast, RM said, “Everyone’s colour is in the album”, before adding, “If Jin’s tour had ended a bit...