The PIA Short-Term Securities Fund seeks a high level of current income, consistent with low volatility of principal through investing in short-term investment grade debt securities.
Style Benchmark: BofA Merrill Lynch 1-Year Treasury Note Index
Fund Assets: $172 million
Fund Inception: 04.22.94
Expense Ratio: 0.41%
*Net Expense Ratio: 0.39%
Short-term portfolios tend to exhibit very low interest rate risk with the primary objective being principal preservation. PIA offers several short-term strategies for clients that are looking for a low volatility solution that will provide an attractive income stream relative to cash alternatives like money markets.
PIA’s core investment process balances the quantitative nature of our yield curve analysis and neural network methodology with fundamental research to produce a portfolio that emphasizes sector selection, yield curve positioning, duration management and security selection in an attempt to produce above average risk-adjusted yields in undervalued sectors, while providing an opportunity for capital appreciation. Risk measurement is an integral component to this process so that the portfolio is not biased towards higher risk sectors.
The strategy primarily invests in Treasuries and Agencies but may opportunistically invest in Investment Grade Corporates, Mortgage-Backed Securities (MBS) and Asset-Backed Securities, when those sectors offer attractive risk-adjusted yield.
*The Adviser has contractually agreed to waive all or a portion of its management fees and pay Fund expenses to ensure that Net Annual Fund Operating Expenses (excluding AFFE, interest, taxes and extraordinary expenses) does not exceed 0.39%. The Expense Cap will remain in effect through at least March 29, 2018.
Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. The Fund may invest in derivatives, which may involve risks greater than the risks presented by more traditional investments. The risk of owning an ETF or mutual fund generally reflects the risks of owning the underlying securities that the ETF or mutual fund holds. It will also bear additional expenses, including operating expenses, brokerage costs & the potential duplication of management fees. These risks are fully disclosed in the Prospectus.
The BofA Merrill Lynch 1-Year US Treasury Note Index (formerly the Merrill Lynch 1-Year US Treasury Note Index) is comprised of a single issue purchased at the beginning of the month and held for a full month. At the end of the month that issue is sold and rolled into a newly selected issue. The issue selected at each month-end rebalancing is the outstanding Treasury note that matures closest to, but not beyond, one year from the rebalancing date. To qualify for selection, an issue must have settled on or before the month-end rebalancing date. You cannot invest directly in an index.
Diversification does not guarantee a profit or protect from loss in a declining market.