The Red Cedar Short Term Bond Fund seeks to preserve capital and maximize current income.
Capital Preservation
The Fund is focused on capital preservation through investment in a number of security types including U.S government bonds, investment grade corporate bonds, asset-backed and mortgage backed securities.
Yield Focus
Emphasis is placed on securities with a high level of current income through rigorous capital structure analysis to identify potential stable sources of yield.
Active Management
The fund employs an active management approach in an effort to achieve its investment objective, which is to seek preservation of capital and maximize current income.
Under normal market circumstances, the Fund will invest at least 80% of its net assets in U.S. dollar-denominated debt obligations, including corporate bonds, bonds issued by municipalities and local authorities, U.S. treasury obligations, U.S. treasury inflation-protected securities (“TIPS”) and other U.S. government and agency securities, U.S. dollar denominated bonds issued by foreign governments and corporations, asset-backed, commercial mortgage-backed, mortgage-related and mortgage-backed securities.
The Fund only invests in debt obligations that, at the time of purchase, are rated at least Baa3 or higher by Moody’s Investors Services, Inc., or BBB- or higher by Standard & Poor’s Ratings Services or Fitch, Inc., or, if unrated, are determined by Red Cedar Portfolio Management to be of comparable quality.
Under normal circumstances, the Fund’s dollar-weighted average portfolio effective maturity will be more than one year but less than three. The Fund may shorten or lengthen its average weighted effective maturity for temporary defensive purposes.
The Fund may invest a significant portion of its assets in mortgage-backed securities, asset-backed securities and other securitized products. Securitized products may be structured as collateralized mortgage obligations (agency and non-agency), stripped mortgage-backed securities (interest-only or principal-only), commercial mortgage-backed securities, mortgage pass-through securities and other asset-backed securities. In addition to direct investments in securities, the Fund may hold a variety of derivatives, including futures contracts, options, swaps and forward contracts.
Ticker
cusip
Inception date
Expense Ratio1
INDEX
1Red Cedar Investment Management, LLC has contractually agreed to reduce the Management Fee and reimburse Other Expenses until October 1, 2022 to the extent necessary to limit Total Annual Fund Operating Expenses to an amount not exceeding 0.45% of the Fund’s average daily net assets.
Minimum Initial Investment
The minimum initial investment amount for all regular accounts is $10,000.
The minimum initial investment for IRA accounts is $2,000.
Minimum Additional Investment
Once an account is open, additional purchases of Fund shares may be made at any time with a minimum of $100 for all accounts.
Red Cedar Investment Management announced today the signing of an agreement transferring a majority ownership interest to an employee group effective October 1, 2020.
North Square Investments (North Square), a multi-boutique manager with a range of product offerings, has launched its first fixed income mutual fund, the North Square Strategic Income Fund (ADVNX). This is North Square’s second mutual fund launch this year and reflects increasing investor demand from private wealth and retail channels for diversified investment portfolios providing higher current income. This multisector bond fund is being sub-advised by the specialty income investment boutique, Red Cedar Investment Management (Red Cedar).
It is often said that those who ignore the past are doomed to repeat it. For many scarred by the Great Financial Crisis, instruments like RMBS and CMBS became Wall Street’s version of four-letter words.
Disclosures and Definitions
The Fund may invest in mortgage and asset-backed securities which may be subject to prepayment risk and thus may be more sensitive to interest rate changes than other types of debt securities. The Fund may invest in derivative instruments which involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional instruments. The Fund may also invest in U.S. dollar-denominated securities issued by foreign issuers which involve additional risks including political and economic instability, differences in financial reporting standards and less regulated securities markets. A bond’s market value may be affected significantly by changes in interest rates – generally, when interest rates rise, the bond’s market value declines and when interest rates decline, its market value rises (“interest rate risk”).
The Bloomberg Barclays 1-3 U.S. Government / Credit Bond Index is an index consisting of Treasury or government agency securities and investment-grade corporate debt securities with maturities of one to three years. Indices are unmanaged and are not available for direct investment.
Jason M. Schwartz is a Partner, Senior Portfolio Manager for Red Cedar Investment Management. He started in the industry in 2004 and joined Red Cedar in 2018. Prior to joining Red Cedar, he served in various roles at ClearArc Capital including his latest position as Senior Portfolio Manager. His responsibilities comprised several investment strategies over time including multi-sector, Core Plus Fixed Income, Core Fixed Income and Intermediate Government Credit Fixed Income. In addition, Mr. Schwartz was head of securitized products research and trading responsible for oversight of the firm’s entire Asset-Backed Securities (ABS), Mortgage-Backed Securities (MBS) and Commercial Mortgage-Backed Securities (CMBS) portfolio. He also supported the risk management function by providing the firm with derivatives and hedging analysis. He is a member of the Cincinnati Society of Financial Analysts. Mr. Schwartz graduated summa cum laude from the University of Kentucky with a B.B.A. in Finance and is a CFA® charterholder.
Michael J. Martin is a Partner, Senior Portfolio Manager for Red Cedar Investment Management. He started in the industry in 1994 and joined Red Cedar in 2018. Previously, he was the Director of Credit Research and Investment Risk Oversight for ClearArc Capital (a subsidiary of Fifth Third Bank). Prior to that, he served as the Director of Tax Free Fixed Income at Lyon Street Asset Management, a subsidiary of Old Kent Bank, which was acquired by Fifth Third Bank. He is a CFA® charterholder and member of the CFA Society West Michigan. Mr. Martin graduated from Michigan Technological University with a B.S. in Geological Engineering and received an MBA from Michigan State University.
Patricia Younker is a Partner, Senior Portfolio Manager for Red Cedar Investment Management. She started in the industry in 1987 and joined Red Cedar in 2018. She is responsible for the management of Tax-Exempt and Taxable Fixed Income accounts. Prior to joining Red Cedar Investment Management, she held a similar position at ClearArc Capital from 2001- 2018. Previously, she served as a Portfolio Manager at Lyon Street Asset Management, a subsidiary of Old Kent Bank, which was acquired by Fifth Third Bank (an affiliated company of ClearArc Capital). Her previous experience includes working as a Tax-Exempt Money Market Trader and as a Fixed Income Trader. Mrs. Younker graduated from Davenport University with a Bachelor of Applied Science.
John L. Cassady III is Managing Partner, Chief Executive Officer and Chief Investment Officer for Red Cedar Investment Management. He started in the industry in 1987 and joined Red Cedar in 2018. Prior to that, he was an investment professional for ClearArc Capital where he served in varying roles from 2001-2018, including Director of Fixed Income and Senior Portfolio Manager. While at ClearArc Capital, Mr. Cassady managed Core Fixed Income, Core Plus Fixed Income, Asset Allocation and a multi-sector low correlation strategy. Before joining ClearArc Capital, he held a similar position at Lyon Street Asset Management, a subsidiary of Old Kent Bank, which was acquired by Fifth Third Bank (an affiliated company of ClearArc Capital). Previously, he was a fixed income Portfolio Manager at Atlantic Portfolio Analytics & Management (APAM) which has since been acquired by Semper Capital Management. He is a CFA® charterholder and member of the CFA Society West Michigan. Mr. Cassady graduated from Georgia Institute of Technology with a B.S. in Industrial Management.
