RLF Enrollment - Web Book - Ready - Flipbook - Page 66
Word about risk continued
lose
los more than the cash amount invested.
Issuers of sovereign debt or the governmental
authorities that control repayment may be unable
or unwilling to repay principal or interest when due,
and the Fund may have limited recourse in the
event of default.Without debt holder approval, some
governmental debtors may be able to reschedule or
restructure their debt payments or declare
moratoria on payments. The risks of investing in
securities of foreign issuers can include fluctuations
in foreign currencies, political and economic
instability, and foreign taxation issues. The Fund
may hold illiquid securities that it may be unable to
sell at the preferred time or price and could lose its
entire investment in such securities. For wrap
agreements purchased by the Fund, there is no
active market and the sale of such agreements is
not an available option for satisfying withdrawal
requests. Plans and plan participants are subject to
liquidity risk due to various withdrawal restrictions
relating to the Fund, see Article VI Section 9 of the
Declaration of Trust.
ru
The Fund is suitable for long-term investors and
should not be viewed as a short-term investment
vehicle. Moreover, an investment in the Fund is not
intended to provide a complete or balanced
investment program. The Fund may also be unable
to convert its investments on a timely basis without
substantial reductions in prices to meet withdrawal
re
requests.
Mortgage- and asset-backed securities are subject
to prepayment or call risk, which is the risk that the
borrower’s payments may be received earlier or
later than expected due to changes in prepayment
rates on underlying loans. Securities may be prepaid
at a price less than the original purchase value.
Managers’ individual investing styles may not
complement each other, which can result in higher
portfolio turnovers, enhanced/reduced
concentrations or investing style compared with an
investment with a single manager.
Municipal securities are subject to the risk that
legislative or economic conditions could affect an
issuer’s ability to make payments of principal and/
or int
interest.
The Fund may invest in an investment vehicle, such
as a private investment or commingled fund; as a
result, the fund is subject to the underlying risks of
that investment.
Obligations issued by US Government agencies and
instrumentalities may receive varying levels of
support from the government, which could affect
the fund’s ability to recover should they default.
The Fund is not a mutual fund or any other type of
Investment Company within the meaning of the
Investment Company Act of 1940, as amended, and
is not subject to regulation thereunder.
Dollar roll transactions involve the risk that the
market value and yield may decline below the price
of the mortgage-related securities that have been
sold and are required to be repurchased
To Be Announced transactions involve the risk that
the securities received may be less favorable than
what was anticipated by the Fund when entering
into the transaction or that a counterparty will fail
to deliver the security, exposing the fund to further
losses. Whether or not the fund takes delivery of the
securities at the termination date of a To Be
Announced transaction, the fund will be exposed to
changes in the value of the underlying investments
during the term of the agreement
Pursuant to CFTC Rule 4.5, the Trustee is exempt
from having to register as a commodity pool
operator but will comply with the requirements
thereof. Although not required by Trustee, all
participating trusts will receive a copy of the
Declaration of Trust and annual report for the Fund.
The Fund is subject to certain other risks. Please see
the Declaration of Trust for more information
regarding the risks associated with an investment in
the Fund.
Portfolio composition
Asset Allocation
% TNA
Short Term Investments**
Core Investments
Intermediate Investments
1ŸƇƅ
20.95
31.15
Short Duration Investments 46.26
Manager Diversification
% TNA
Short Term Investments**
Dodge & Cox
Invesco
Jennison
Loomis Sayles
PIMCO
1.64
5.25
61.84
10.36
10.45
10.45
Portfolio composition statistics are subject to change
and current holdings may differ. It should not be
assumed that any of the holdings discussed were or
will prove to be profitable, or that the investment
recommendations or decisions we make in the future
will be profitable or will equal the investment
performance of the holdings.
Sector Allocation
Short Term Investments**
U.S. Treasuries Securities
U.S. Government Agencies
Non-US Govt/Agency
Corporate Bonds
Mortgage Backed Securities
Asset Backed Securities
Commercial Mortgage Backed
Securities
Derivatives
Municipal
Total
Quality Allocation***
Short Term Investments**
AAA
AA
A
BBB
