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Core Plus Income Fund (WCPBX)

NAV
$10.65
as of 12/13/2019
1 Day Change
$0.03/(0.28%)
as of 12/13/2019
YTD Return
7.68%
as of 12/13/2019
30-Day SEC Yield (%)
as of 09/30/2019
2.68%
Morningstar Rating™
Overall as of 11/30/2019
    
out of 544 funds
Based on risk-adjusted returns

Fund Facts

  • Ticker
    WCPBX
  • CUSIP
    94904P831
  • Fund
    Inception
    07/31/2014
  • Class
    Inception
    07/31/2014
  • Net
    Assets
    $108 Million
    as of 09/30/2019
  • Dividend
    Frequency
    Quarterly
  • Morningstar
    Category
    Intermediate Core-Plus Bond
  • Portfolio
    Manager(s)
      Thomas Carney, CFA
    Nolan Anderson

Investment Approach

The primary investment objectives of the Core Plus Income Fund are current income and capital preservation. A secondary investment objective is long-term capital appreciation.

Strategy and Process

Flexible, high-conviction portfolio

Fixed Income markets are inefficient and, at times, illiquid.

We build a flexible, concentrated, multi-sector portfolio that is conscious of asset capacity.

Bottom-up driven, top-down aware

Human behavior and market sentiment are more volatile than the intrinsic value of a business.

With consideration to economic and fixed income market drivers, we build the portfolio using a bottom-up, research-driven approach.

Emphasis on downside risk management

Credit investing is asymmetric in nature, and attempting to forecast interest rates is speculative.

The credit quality allocation of the fund may vary over time, but our core philosophy remains focused on managing downside risks.

We seek to avoid investments that rely solely on making a correct interest rate forecast.

Performance

Data quoted is past performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.

Historical Returns
as of 11/30/2019

Cumulative Returns

Average Annual Total Returns

YTD 1 MO 3 MO 1 YR 3 YR 5 YR Since
Inception
7/31/2014
Core Plus Income Fund 7.68% 0.00% 0.19% 9.00% 4.17% 3.87% 3.91%
Bloomberg Barclays U.S. Aggregate Bond Index 8.79% -0.05% 0.25% 10.79% 4.11% 3.08% 3.29%

Growth of a $10,000 Investment
as of 11/30/2019

Summary of Returns

Year Core Plus Income Fund Bloomberg Barclays U.S. Aggregate Bond IndexRelative Results
2019 (11/30/2019) 7.68% 8.79% -1.11%
2018 1.68% 0.01% 1.67%
2017 3.03% 3.54% -0.51%
2016 7.32% 2.65% 4.67%
2015 0.21% 0.55% -0.34%
2014 (07/31/2014) 1.17% 2.22% -1.05%
Swipe/scroll vertically for full history

Since Inception Returns

Since Inception (7/31/2014) Core Plus Income Fund Bloomberg Barclays U.S. Aggregate Bond IndexRelative Results
Cumulative Return 22.75% 18.86% 3.89%
Average Annual Return 3.91% 3.29% 0.62%

Morningstar Ratings™
as of 11/30/2019

Rating / Number of funds in the category

Category 3 YR 5 YR Overall Rating
Intermediate Core-Plus Bond    
out of 544
     
out of 452
    
out of 544

Morningstar Rankings™
as of 11/30/2019

Ranking / Number of funds in the category / Percentile Ranking

Category 1 YR 3 YR 5 YR
Intermediate Core-Plus Bond 503 / 627
77
276 / 544
53
31 / 452
7

Fees & Expenses
as of most recent prospectus dated 07/31/2019

Gross Expense Ratio 0.96%
Net Expense Ratio 0.40%
Contractual Expiration Date 7/31/2020
Distribution and/or service fee (12b-1) Fees None
Sales Charge None
Redemption Fee None

Portfolio

Asset Allocation
% of Net Assets as of 09/30/2019

Credit Quality
% of Portfolio as of 09/30/2019

U.S. Treasury 24.6
U.S. Government Agency Mortgage Related Securities 1.8
AAA 8.6
AA 9.5
A 13.0
BBB 28.3
BB 4.7
B 3.7
CCC 0.7
Non-Rated 1.6
Common Stocks 0.2
Cash Equivalents 3.3

Portfolio Characteristics
as of 09/30/2019

Number of Companies (Equity) 1
Number of Fixed Income Issuers (Including U.S. Treasury Bills, if applicable) 107
Annual Turnover*
33%

*as of most recent Annual Report

Fixed Income Characteristics
as of 09/30/2019

Average Maturity 5.4 years
Average Effective Maturity 5.2 years
Average Duration 4.1 years
Average Effective Duration 4.1 years
Average Coupon 3.6

Maturity Distribution
% of Portfolio as of 09/30/2019

Cash Equivalents 3.3
Less than 1 Year 15.9
1 - 3 Years 34.8
3 - 5 Years 9.7
5 - 7 Years 15.1
7 - 10 Years 11.1
10 Years or more 9.9
Common Stocks 0.2

Duration Distribution
% of Portfolio as of 09/30/2019

0 - 1 Years 29.2
1 - 3 Years 28.3
3 - 5 Years 8.8
5 - 7 Years 23.1
7 - 10 Years 1.5
10 Years or more 8.9
Common Stocks 0.2

Five Largest Issuers
% of Portfolio as of 09/30/2019

Redwood Trust, Inc. 1.6
CenturyLink, Inc. 1.5
NGL Energy Partners LP 1.2
MPLX LP 1.2
Silversea Cruise Holding Ltd. 1.1

Distributions

RECORD DATE EX & PAY DATE Income Capital Gain Short-Term Capital Gain Long-Term Total Distribution Reinvestment NAV
09/16/19 09/17/19 0.0840 n/a n/a 0.0840 10.57
06/17/19 06/18/19 0.0780 n/a n/a 0.0780 10.45
03/18/19 03/19/19 0.0680 n/a n/a 0.0680 10.21
12/26/18 12/27/18 0.0730 n/a n/a 0.0730 10.07
09/25/18 09/26/18 0.0670 n/a n/a 0.0670 10.02
06/26/18 06/27/18 0.0750 n/a n/a 0.0750 10.08
03/27/18 03/28/18 0.0630 n/a n/a 0.0630 10.08
12/26/17 12/27/17 0.0680 0.0023 0.0016 0.0719 10.22
09/26/17 09/27/17 0.0600 n/a n/a 0.0600 10.28
06/27/17 06/28/17 0.0520 0.0027 0.0242 0.0789 10.29
03/28/17 03/29/17 0.0560 n/a n/a 0.0560 10.23
12/27/16 12/28/16 0.0590 0.1001 0.0321 0.1912 10.15
09/27/16 09/28/16 0.0690 0.0000 0.0000 0.0690 10.52
06/27/16 06/28/16 0.0690 n/a n/a 0.0690 10.46
03/28/16 03/29/16 0.0700 n/a n/a 0.0700 10.12
12/28/15 12/29/15 0.0680 0.0106 0.0027 0.0813 9.86
09/25/15 09/28/15 0.0560 n/a n/a 0.0560 10.09
06/25/15 06/26/15 0.0440 0.0036 n/a 0.0476 10.09
03/26/15 03/27/15 0.0280 n/a n/a 0.0280 10.19
12/26/14 12/29/14 0.0670 n/a n/a 0.0670 10.04

Literature

Fact Sheet Commentary Summary Prospectus
Annual Report Semi-Annual Report Prospectus SAI XBRL*

Risks

An investment in the Fund involves certain risks, including, among others, the following:

Market Risk
As with any mutual fund, investment return and principal value will fluctuate, depending on general market conditions and other factors, and it is possible to lose money by investing.

Non-U.S. Securities Risk
The Fund may invest in securities issued by non-U.S. issuers, which securities may be denominated in U.S. dollars or foreign currencies. Investments in non-U.S. securities may involve additional risks including exchange rate fluctuation, political or economic instability, the imposition of exchange controls, expropriation, limited disclosure and illiquid markets.

Interest Rate Risk
Fixed income securities are subject to interest rate risk because the prices of fixed income securities tend to move in the opposite direction of interest rates. When interest rates rise, fixed income security prices fall. When interest rates fall, fixed income security prices rise. Changing interest rates may have sudden and unpredictable effects in the markets and on the Fund’s investments. In general, fixed income securities with longer maturities are more sensitive to changes in interest rates.

Credit Risk
The chance that the issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer’s ability to make such payments will cause the price of that security to decline.

Non-Investment Grade Debt Securities Risk
Non-investment grade debt securities (commonly referred to as "high yield" or "junk" bonds) are speculative and involve a greater risk of default and price change than investment grade debt securities due to the issuer’s creditworthiness. The market prices of these securities may fluctuate more than the market prices of investment grade debt securities and may decline significantly in response to adverse economic changes or issuer developments.

Call Risk
Call risk is the risk, especially during periods of falling interest rates, that a bond issuer will call or repay a higher-yielding bond before its maturity date, forcing the Fund to reinvest in bonds with lower interest rates than the original obligations.

Debt Securities Liquidity Risk
Debt securities purchased by the Fund that are liquid at the time of purchase may subsequently become illiquid due to, among other things, events relating to the issuer of the securities (e.g., changes to the market's perception of the credit quality of the issuer), market events, economic conditions, investor perceptions or lack of market participants. The Fund may be unable to sell illiquid securities on short notice or only at a price below current value.

Mortgage-Backed (and Other Asset-Backed) Securities Risk
Mortgage-backed securities (and other asset-backed securities) are generally structured for the securities holders to receive periodic payments as the securities issuer receives payments on the mortgages (or loans) in an underlying asset pool. Sometimes these securities are issued in separate tranches, which can mean the securities holders of one tranche receive payment in full before the securities holders of another tranche receive any payments. Also sometimes credit support is provided for these securities, which can mean the securities issuer, an affiliated party or a third party provides additional assets, or makes additional promises, with respect to payment to the securities holders. Risks to the securities holders can include (i) the underlying asset pool may not pay as expected (which could mean sooner or later than expected), (ii) the securities issuer may have insufficient cash to make payment on the securities generally, or on certain tranches of the securities and (iii) the credit support may be insufficient to make payment on the securities.

Government-Sponsored Enterprises Risk
Obligations of U.S. Government agencies and authorities (such as Fannie Mae and Freddie Mac) are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. Government. No assurance can be given that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so. In addition, the value of U.S. Government securities may be affected by changes in the credit rating of the U.S. Government.

Derivatives Risk
Derivatives are instruments, such as futures and forward contracts, whose value is derived from that of other assets, rates or indices. The use of derivatives for non-hedging purposes may be considered to carry more risk than other types of investments. Derivative instruments are subject to a number of risks including counterparty, liquidity, interest rate, market, credit and management risks, and the risk of improper valuation. Changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index, and in some cases the Fund could lose more than the principal amount invested.

Failure to Meet Investment Objective
There can be no assurance that the Fund will meet its investment objective.

An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

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