HFAIX Developed World Bond Fund

Investing across a wide range of fixed income securities, the Fund seeks income and total return while actively managing duration and credit exposure

NAV
$10.05
As of 09/25/2020

1-Day Change
-$0.01 (-0.10%)
As of 09/25/2020

YTD Return
5.87%
As of 09/25/2020

Morningstar Rating

As of 08/31/2020

Morningstar Analyst Rating
Morningstar Analyst Rating				Silver
As of 08/31/2020

Overview

Quarterly Update

Watch the investment team recap the quarter.

ABOUT THIS FUND

A world bond fund focusing on developed markets that seeks total return through current income and capital appreciation. The Fund makes strategic asset allocation decisions between countries, fixed income asset classes, sectors and credit ratings.

WHY INVEST IN THIS FUND

Active Asset Allocation Approach
We believe asset allocation is the primary driver of returns. Specifically, we actively manage the Fund’s duration position and credit exposure based on where we believe we are in the economic cycle.

Designed for Attractive Total Return
The Fund’s flexibility allows it to source return from a wide range of global fixed income securities. In addition, we favor sensible income from large, non-cyclical businesses that are likely to continue paying their coupons in the years to come.

Aims to Exploit Opportunities
We believe divergent central bank policy has created an opportunity for us to exploit market inefficiencies. The portfolio seeks to take advantage of these opportunities across developed markets and to avoid currency bets.

PORTFOLIO MANAGEMENT

Jenna Barnard, CFA

Co-Head of Strategic Fixed Income | Portfolio Manager

Industry since 2001. Joined Firm in 2002.

John Pattullo

Co-Head of Strategic Fixed Income | Portfolio Manager

Industry since 1993. Joined Firm in 1997.

Performance

RETURNS (%) (As of 06/30/2020)
Developed World Bond Fund - Class I Shares Bloomberg Barclays Global Aggregate Credit Index (USD Hedged)
 
3M YTD 1YR 3YR 5YR 10YR Since Inception
(09/30/2003)
Developed World Bond Fund - Class I Shares 6.90 4.03 6.36 5.41 5.48 5.99 5.40
Bloomberg Barclays Global Aggregate Credit Index (USD Hedged) 6.92 3.43 6.90 5.63 5.18 4.96 4.85
RETURNS (%) (As of 08/31/2020)
Developed World Bond Fund - Class I Shares Bloomberg Barclays Global Aggregate Credit Index (USD Hedged)
 
3M YTD 1YR 3YR 5YR 10YR Since Inception
(09/30/2003)
Developed World Bond Fund - Class I Shares 3.73 6.61 5.12 5.88 5.86 5.73 5.49
Bloomberg Barclays Global Aggregate Credit Index (USD Hedged) 3.34 5.19 5.25 5.68 5.49 4.77 4.91
CALENDAR YEAR RETURNS (%)
Developed World Bond Fund - Class I Shares Bloomberg Barclays Global Aggregate Credit Index (USD Hedged)
 
  2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Developed World Bond Fund - Class I Shares 10.17 0.12 14.06 4.17 5.79 2.07 6.20 5.93 0.74 9.68
Bloomberg Barclays Global Aggregate Credit Index (USD Hedged) 6.83 5.07 10.35 -0.43 7.49 -0.13 5.69 5.36 -0.47 11.85

MORNINGSTAR PERCENTILE

(As Of 06/30/2020)
1 YR 3 YR 5 YR 10 YR SINCE INCEPTION
Percentile Ranking 26 12 1 1 7
World Bond-USD Hedged Category|Rank/Count 26/107 10/87 2/75 1/51 7/48
(As Of 08/31/2020)
1 YR 3 YR 5 YR 10 YR SINCE INCEPTION
Percentile Ranking 18 8 1 1 5
World Bond-USD Hedged Category|Rank/Count 21/110 6/91 2/75 1/51 5/48
GROWTH OF A HYPOTHETICAL INVESTMENT

RETURNS-BASED STATISTICS (As of 08/31/2020 Class I Shares)

RISK / REWARD
VS. Bloomberg Barclays Global Aggregate Credit Index Net (USD Hedged)
3YR 5YR
Information Ratio 0.12 0.21
Alpha 1.09 1.29
Tracking Error 1.58 1.72
Beta 0.83 0.83
R-squared (%) 92.14 85.66
UP/DOWN MARKET CAPTURE (%)
VS. Bloomberg Barclays Global Aggregate Credit Index Net (USD Hedged)
3YR 5YR
Up Capture Ratio 87.65 91.19
Down Capture Ratio 65.85 65.03
STANDARD DEVIATION 3YR 5YR
Developed World Bond Fund 4.67 4.04
Bloomberg Barclays Global Aggregate Credit Index Net (USD Hedged) 5.37 4.53
SHARPE RATIO 3YR 5YR
Developed World Bond Fund 0.90 1.16
Bloomberg Barclays Global Aggregate Credit Index Net (USD Hedged) 0.75 0.96
ANNUAL FEES & EXPENSES (As of Fiscal Year End, 06/30/2019)
CLASS I SHARES
Management Fees 0.55%
12b-1 Fees -
Other Expenses 0.20%
Total Gross Expenses 0.75%
Waivers -0.17%
Total Net Expenses 0.58%

Portfolio

Index represents the Bloomberg Barclays Global Aggregate Credit Index (USD Hedged).

Top Holdings (As of 08/31/2020)
% of Fund
New Zealand Government Bond, 2.75%, 04/15/25 2.79
Australia Government Bond, 3.25%, 04/21/29 2.67
United Kingdom Gilt, 0.50%, 07/22/22 2.48
Bundesrepublik Deutschland Bundesanleihe, 0.00%, 02/15/30 2.08
Canadian Government Bond, 1.75%, 03/01/23 1.34
Australia Government Bond, 2.75%, 04/21/24 1.31
Cellnex Telecom SA, 1.88%, 06/26/29 1.18
eircom Finance DAC, 3.50%, 05/15/26 1.13
European Investment Bank, 3.25%, 01/29/24 1.04
Nestle Holdings Inc, 3.90%, 09/24/38 0.97
Total 16.99
View full holdings
Portfolio Characteristics (As of 08/31/2020)
 
Number of Holdings
Debt Issues
279
Portfolio Turnover Rate
(1-year trailing)
84.47%
Weighted Average Maturity
(years)
7.92
Effective Duration
(years)
4.56
Sector Allocation % OF FUND % OF FUND (As of 08/31/2020)
Credit-Investment Grade 46.37
Credit-High Yield 26.95
Treasuries 13.54
Bank Loans 3.40
Government Related 2.60
Inflation Linked 0.45
Credit Default Swap 0.34
CMBS 0.03
Short Credit Default Swap -0.34
Cash & Equivalents 6.66
Regional Allocations % OF FUND % OF FUND (As of 08/31/2020)
North America 44.15
Europe 40.06
Asia/Pacific Ex Japan 7.66
Supranational 1.47
Cash & Equivalents 6.66
MATURITY BREAKDOWN OF FIXED INCOME HOLDINGS % OF FUND % OF FUND (As of 08/31/2020)
< 1 yr 0.11
1 - 3 yrs 5.01
3 - 5 yrs 16.34
5 - 7 yrs 16.39
7 - 10 yrs 42.06
10 - 20 yrs 11.25
> 20 yrs 0.95
N/A 1.23
Credit Quality of Fixed Income Holdings % OF FUND % OF FUND (As of 08/31/2020)
Aaa 10.42
Aa 8.51
A 10.02
Baa 34.56
Ba 15.28
B 12.63
Caa 0.76
NOT RATED 1.16

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