Download wells fargo/ galliard ultra short bond fund

Wells Fargo/ GalliarD Ultra short bond Fund
CIT fund overview
Fixed
Income
The WELLS FARGO/ GALLIARD ULTRA SHORT BOND FUND (Fund) is a
Fast Facts
Inception Date:
Class G: May 1, 2015
Fund Advisor:
Galliard Capital Management, Inc.
Fund Trustee and Investment
Manager
Wells Fargo Bank, NA
conservative fixed income fund that seeks to provide safety of principal and appropriate
liquidity, while generating a competitive yield. The Fund seeks to provide greater yield
potential than money market investment strategies by extending maturities and investing
in a diversified portfolio of high quality fixed income securities. The Fund is a collective
trust fund managed and trusteed by Wells Fargo Bank, N.A., and advised by Galliard
Capital Management.
investment objective
The Fund seeks to provide safety of principal and appropriate liquidity, while generating
a competitive yield. There is no assurance that the Fund will achieve its objective.
Portfolio Managers
·· Erol Sonderegger, CFA
·· Andrea Johnson, CFA
Investment Strategy
Fund Benchmark
The Advisor will invest substantially all assets in investment-grade fixed income
securities. The portfolio will be a diversified pool of fixed and variable rate U.S. dollardenominated fixed-income securities of a broad spectrum of U.S. and foreign issuers,
including U.S. Government obligations and the debt securities of financial institutions,
corporations, and others. All securities will be rated Baa3/BBB- or better at time of
purchase by a Nationally Recognized Statistical Rating Organization (“NRSRO”). Shortterm money market securities shall have a rating of A1/P1 or better. All securities will
be denominated in US dollars. The minimum weighted average quality of the underlying
Bank of America/Merill Lynch 1
Year Treasury Note Index
Ultra Short Peer Groups
·· Morningstar Ultrashort Bond
Category
·· eVestment Alliance US
Enhanced Cash Fixed Income
Universe
assets will be maintained at Aa3/AA-.
Valuation Frequency
About Galliard
Daily
Typical Maturity Range
0.75 years to 1.5 years
Minimum Average Credit
Quality Rating
Aa3/AATotal Expense
Class
CUSIP
Class G*
94988K542
0.040%
Class W*
94988K534
0.055%
Class E
94988K518
0.230%
Class E1
94988K492
0.190%
Ratio
Galliard is one of the nation’s largest stable value fixed income managers1 with $84.8
billion in assets under management. As part of Galliard’s stable value management
capability, we currently manage approximately $38.4 billion in short-duration fixed income
management. Galliard’s Fixed Income Team has managed similar ultra-short mandates
since the inception of the firm in 1995. An existing ultra short portfolio opened in 1998
and continues to exist as a core trust within the Wells Fargo mutual fund organization and
is currently utilized as a sub-portfolio within two Wells Fargo mutual funds. In addition,
Galliard manages a variety of separate accounts with similar short duration mandates.
*G and W unit classes are not available for direct investment
1
Pensions & Investments Largest Money Managers Report, May 27, 2013. The ranking is based on U.S. Institutional, tax-exempt assets in
millions, as of December 31, 2012.
800 LaSalle Avenue, Suite 1100
Minneapolis, MN 55402-2054
www.galliard.com 800-717-1617
FOR INSTITUTIONAL INVESTOR USE ONLY.
Wells Fargo/ Galliard Ultra Short Bond Fund
Applications
·· Defined contribution plan
investment option
·· Fixed income component of
custom target date/balanced
strategies
·· Secondary liquidity source for
stable value strategies
·· Enhanced cash component for
defined benefit plan
Galliard’s approach to fixed income management is grounded in the philosophy of
“income generation with risk control.” We seek to generate a realizable yield advantage
over time, and as a result, we expect the vast majority of our performance over time will
come from yield rather than price changes. We employ the same fixed income techniques
used in our core/longer duration fixed income strategies for portfolios at the ultrashort and short end of the yield curve. Galliard seeks to build yield in a portfolio and
emphasizes risk control by broadly diversifying holdings across sector, issue and issuers.
Key Investment Guidelines
Quality
• Each security must be rated Baa3/BBB- or better at time of purchase by a
Nationally Recognized Statistical Rating Organization (NRSRO)
• Each short-term money market security must be rated A1/P1 or better at time of
purchase
• Weighted average quality of the Fund must be maintained as Aa3/AA- or higher
Maturity/Duration
• Duration is targeted to remain within +/-0.5 years of the Bank of America/Merrill
Lynch 1 Year Treasury Note Index
• Weighted average maturity will generally range from 0.75 to 1.5 years, with a
guideline maximum of 2.75 years
Sector Allocation Maximums
• U.S. Government/Agencies: 100%
For More Information
Contact:
Taylor Benson, Senior Director
• Corporates/ Taxable Municipals: 50%
• Asset-Backed Securities: 50%
• Agency and Non-Agency CMBS: 25%
• Mortgage-Backed Securities (RMBS): 25%
612-667-4252
[email protected]
Galliard Client Service
800-717-1617
[email protected]
This publication is for informational purposes only; it is not investment advice or a recommendation for a particular security strategy or investment product. Graphs and tables are for
illustrative purposes only. Galliard’s advisory fees are disclosed in the firm’s SEC Form ADV Part 2 which is available upon request. FOR INSTITUTIONAL INVESTOR USE ONLY.
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