Short Duration Income Fund : Overview

Fund Statistics

As of March 31, 2017
Total net assets (in millions) $1,103.3
Net Asset Value (NAV 04/28/2017): $12.33
Expense Ratio (03/31/2017) *: 0.58%
Sales Charges: None
Redemption Charge: None
Minimum Investment:** $1,000,000
Ticker Symbol: WEFIX
CUSIP Number: 94904P302
Fund Number: 329
Inception Date: December 23, 1988
Fund Manager:
As of March 31, 2017

Morningstar Rating :

Morningstar Style Box : Short-Term Bond Morningstar Style Box

Short Duration Income Fund Objective

The Short Duration Income Fund is a bond fund with an investment objective of generating current income consistent with preserving capital. Under normal circumstances, the fund invests at least 80% of its assets in debt securities, which may include U.S. Government and agency securities, corporate bonds, mortgage-backed securities, asset-backed securities and securities issued by foreign governments.  The Fund may invest up to 15% of its total assets in debt securities which are non-investment grade or unrated.  The Fund may also invest in derivative instruments.  The Fund may also invest in common stocks, preferred stocks and securities convertible into stocks.

Effective December 16, 2016, the Short Duration Income Fund expects to manage its portfolio to have an average effective duration of between one and 3½ years.

*Actual annual expense ratio for the year ended March 31, 2017 was 0.62% (gross) and 0.58% (net). The investment adviser has agreed in writing to waive its fees and reimburse certain expenses (excluding taxes, interest, brokerage costs, acquired fund fees and expenses and extraordinary expenses) to limit the total annual fund operating expenses for Institutional Class shares and Investor Class shares to 0.48% and 0.68%, respectively, of each Class’ average daily net assets through July 31, 2018.  This agreement may only be terminated by the Board of Trustees of the Fund. 
**As of July 31, 2014
Morningstar seeks credit rating information from fund companies on a periodic basis (e.g., quarterly). In compiling credit rating information Morningstar accepts credit ratings reported by fund companies that have been issued by all Nationally Recognized Statistical Rating Organizations (NRSROs). For a list of all NRSROs, please visit Additionally, Morningstar accepts foreign credit ratings from widely recognized or registered rating agencies. If two rating organizations/agencies have rated a security, fund companies are to report the lower rating; if three or more organizations/agencies have rated a security, fund companies are to report the median rating, and in cases where there are more than two organization/agency ratings and a median rating does not exist, fund companies are to use the lower of the two middle ratings. PLEASE NOTE: Morningstar, Inc. is not itself an NRSRO nor does it issue a credit rating on the fund. An NRSRO or rating agency ratings can change from time-to-time.

For credit quality, Morningstar combines the credit rating information provided by the fund companies with an average default rate calculation to come up with a weighted-average credit quality. The weighted-average credit quality is currently a letter that roughly corresponds to the scale used by a leading NRSRO. Bond funds are assigned a style box placement of "low", "medium", or "high" based on their average credit quality. Funds with a low credit quality are those whose weighted-average credit quality is determined to be less than "BBB-"; medium are those less than "AA-", but greater or equal to "BBB-"; and high are those with a weighted-average credit quality of "AA-" or higher. When classifying a bond portfolio, Morningstar first maps the NRSRO credit ratings of the underlying holdings to their respective default rates (as determined by Morningstar's analysis of actual historical default rates). Morningstar then averages these default rates to determine the average default rate for the entire bond fund. Finally, Morningstar maps this average default rate to its corresponding credit rating along a convex curve.

For interest-rate sensitivity, Morningstar obtains from fund companies the average effective duration. Generally, Morningstar classifies a fixed-income fund's interest-rate sensitivity based on the effective duration of the Morningstar Core Bond Index (MCBI), which is currently three years. The classification of Limited will be assigned to those funds whose average effective duration is between 25% to 75% of MCBI's average effective duration; funds whose average effective duration is between 75% to 125% of the MCBI will be classified as Moderate; and those that are at 125% or greater of the average effective duration of the MCBI will be classified as Extensive. For municipal bond funds, Morningstar also obtains from fund companies the average effective duration. In these cases static breakpoints are utilized. These breakpoints are as follows: (i) Limited: 4.5 years or less; (ii) Moderate: more than 4.5 years but less than 7 years; and (iii) Extensive: more than 7 years. In addition, for non-US taxable and non-US domiciled fixed income funds static duration breakpoints are used: (i) Limited: less than or equal to 3.5 years; (ii) Moderate: greater than 3.5 and less than equal to 6 years; (iii) Extensive: greater than 6 years.
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