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Scout Investments, Inc. has expanded its mutual fund lineup with the launch of the
Scout Low Duration Bond Fund (SCLDX). With an emphasis on capital preservation, the fund is designed to yield more than money market funds and to be less volatile than longer-term bond funds.
“The fund offers investors the potential for an attractive yield with relatively low credit risk and provides a strategy to help preserve capital during periods of rising interest rates,” said Mark Egan, CFA, the Fund’s lead portfolio manager and managing director at Reams Asset Management (Reams), a division of Scout Investments. “We believe the fund will allow investors to preserve past gains and earn a competitive rate of return while waiting for better opportunities in the future,” Egan said.
“The Scout Low Duration Bond Fund complements our existing fixed income products very well and demonstrates our commitment to offering industry-leading solutions,” said Andy Iseman, chief executive officer of Scout Investments. “We believe Reams’ experience and approach to fixed income investing will make this another attractive option for our clients,” Iseman said.
Through a disciplined investment process that emphasizes relative value, the Fund’s management seeks to maximize risk-adjusted total return, minimize volatility, and preserve capital. The Fund will be well diversified and consist of high-quality short-term securities with an average fund duration of generally 1-3 years. It also has the flexibility to invest in high yield securities when it is attractive to do so.
“Our team is excited about making this strategy available to a broader audience beyond the institutional marketplace,” Egan said. The launch of the Scout Low Duration Bond Fund follows the introduction of three Scout fixed income funds last year, all managed by Reams’ portfolio management team.
About Scout InvestmentsScout Investments, Inc. headquartered in Kansas City, Mo., offers equity and fixed income investment management strategies for institutions and individual investors through separate accounts and mutual funds. Domestic large-cap, mid-cap, small-cap, international, international small/mid-cap, and global equity portfolios are offered through Scout Investments. Fixed income portfolios in core plus, core, intermediate, long duration, low duration and unconstrained are offered through Scout’s fixed income division, Reams Asset Management. Scout is the investment subsidiary of UMB Financial Corporation (NASDAQ: UMBF). Additional information can be found at www.scoutinv.com.You should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. To obtain a Prospectus, which contains this and other information about the Fund, call 800-996-2862 or visit scoutfunds.com. Please read the Prospectus carefully before investing.Diversification does not prevent loss or enhance returns.The return of principal in a bond fund is not guaranteed. Fixed income funds have the same issuer, interest rate, inflation and credit risks that are associated with underlying fixed income securities owned by the Fund. High yield securities involve greater risk than investment grade securities. Mortgage- and Asset-Backed Securities are subject to prepayment risk and the risk of default on the underlying mortgages or other assets. Foreign investments present additional risks due to currency fluctuations, economic and political factors, government regulations, differences in accounting standards and other factors.Derivatives may involve greater risks than if the Fund invested in the referenced obligation directly. Derivatives may involve certain costs and risks such as liquidity risk, interest rate risk, market risk, credit risk, management risk and the risk that a fund could not close out a position when it would be most advantageous to do so. The use of leverage may increase market exposure, magnify investment risks, and cause losses to be realized more quickly. The Fund may use derivatives for hedging purposes or as part of its investment strategy.The Fund may, at times, experience higher-than-average portfolio turnover which may generate significant taxable gains and increased trading expenses which in turn may lower the Fund’s return.The Scout Funds are distributed by UMB Distribution Services, LLC, 803 W. Michigan St. Milwaukee, WI 53233, an affiliate of UMB Financial Corporation.Scout Investments, Inc., a subsidiary of UMB Financial Corp., serves as investment adviser to the Scout Funds.SCOUT, SCOUT INVESTMENTS, SEE FURTHER, the Scout design, and the Ribbon design – Reg. U.S. Tm. Off.NOT FDIC INSURED – MAY LOSE VALUE – NO BANK GUARANTEE