Investment Objective

Seeks to provide high current income and long-term total return.

High Conviction Investment Ideas

Through rigorous core credit analysis and active portfolio management, the portfolio manager utilizes his best ideas in the floating-rate and debt-security asset class to seek to amplify performance.

Global Opportunity Set

The Fund has a strategic allocation to foreign loans to attempt to take advantage of the maturing European loan market.

High Yield

To enhance the potential for increased distribution yield, the Fund has a strategic allocation to high-yield corporate debt.

Portfolio Management

  • Michael Bacevich

    Michael Bacevich
    Vice President
    Fixed-Income Portfolio Manager
    Wellington Management
    Professional Experience Since 1988
    BS, U.S. Military Academy
    MBA, University of Chicago

Portfolio managers are supported by the full resources of Wellington Management.


Conference Call Replay


Average Annual Total Returns
(as of 3/31/2014)
Average Annual Total Returns YTD 1YR 3YR 5YR 10YR SI
AT NAV 1.51% 5.40% --- --- --- 8.91%
Benchmark 1.30% 5.04% --- --- --- ---
Peer Group 0.96% 4.24% --- --- --- ---
With 3.0% Max
Sales Charge
--- 2.24% --- --- --- 7.59%
Average Annual Total Returns
(as of 3/31/2014)
Average Annual Total Returns YTD 1YR 3YR 5YR 10YR SI
AT NAV 1.51% 5.40% --- --- --- 8.91%
Benchmark 1.30% 5.04% --- --- --- ---
Peer Group 0.96% 4.24% --- --- --- ---
With 3.0% Max
Sales Charge
--- 2.24% --- --- --- 7.59%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that an investors' shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.

Inception Date: 09/30/2011


Operating Expenses

Net 1.07% | Gross 1.15%
 

Calendar Year Returns
Fund Benchmark Peer Group
2013 6.78% 6.15% 5.62%
2012 10.88% 9.43% 9.44%
2011 --- --- ---
2010 --- --- ---
2009 --- --- ---
2008 --- --- ---
2007 --- --- ---
2006 --- --- ---
2005 --- --- ---
2004 --- --- ---

Excludes sales charges. If sales charges and taxes had been included, the value would have been lower.

Growth of $10,000

(as of 3/31/2014)
[{"date":"2014/03/31","value":"12379"},{"date":"2014/02/28","value":"12334"},{"date":"2014/01/31","value":"12271"},{"date":"2013/12/31","value":"12194"},{"date":"2013/11/30","value":"12125"},{"date":"2013/10/31","value":"12069"},{"date":"2013/09/30","value":"11935"},{"date":"2013/08/31","value":"11892"},{"date":"2013/07/31","value":"11924"},{"date":"2013/06/30","value":"11742"},{"date":"2013/05/31","value":"11874"},{"date":"2013/04/30","value":"11877"},{"date":"2013/03/31","value":"11745"},{"date":"2013/02/28","value":"11617"},{"date":"2013/01/31","value":"11581"},{"date":"2012/12/31","value":"11419"},{"date":"2012/11/30","value":"11332"},{"date":"2012/10/31","value":"11302"},{"date":"2012/09/30","value":"11230"},{"date":"2012/08/31","value":"11082"},{"date":"2012/07/31","value":"10946"},{"date":"2012/06/30","value":"10866"},{"date":"2012/05/31","value":"10744"},{"date":"2012/04/30","value":"10857"},{"date":"2012/03/31","value":"10753"},{"date":"2012/02/29","value":"10666"},{"date":"2012/01/31","value":"10510"},{"date":"2011/12/31","value":"10298"},{"date":"2011/11/30","value":"10201"},{"date":"2011/10/31","value":"10225"},{"date":"2011/09/30","value":"10000"}]

 

Excludes sales charges. If sales charges and taxes had been included, the value would have been lower.

Holdings are subject to change. Percentages may be rounded.
Holdings Characteristics(as of 3/31/2014)
Holdings Characteristics Fund
% in Bank Loans 75.74
Average Bond Price $121.69
Average Days to Reset 55
Bank Loan Average Price $100.13
Effective Duration 0.71 yrs.
Years To Worst 5.14 yrs.

Loan Distribution

(as of 3/31/2014)
label currentpercentage
Financial 10%
Manufacturing 6%
Metals/Minerals 4%
Chemicals 5%
Energy 7%
Food And Drug 3%
Service 13%
Aerospace 3%
Consumer Durables 0%
Housing 2%
Consumer Non-Durables 1%
Food/Tobacco 4%
Forest Prod/Containers 1%
Information technology 8%
Gaming/Leisure 4%
Healthcare 10%
Media/Telecom 13%
Retail 3%
Transportation 2%
Multiple Utilities 2%

Top Ten Issuers (%)

(as of 3/31/2014)
label percentageholding
Nuveen Investments, Inc. 4.50
Arch Coal, Inc. 2.26
First Data Corp. 2.05
ServiceMaster 1.92
Univision Communications, Inc. 1.86
Gardner Denver, Inc. 1.52
Kronos, Inc. 1.51
Ineos Group Holdings plc 1.46
Tribune Co. 1.37
Alcatel-Lucent 1.37
(as of 12/31/2013)
label percentageholding
Nuveen Investments, Inc. 4.02
First Data Corp. 2.56
Arch Coal, Inc. 2.26
Univision Communications, Inc. 2.12
Affinion Group Holdings, Inc. 1.88
Alcatel-Lucent 1.56
Gardner Denver, Inc. 1.51
Shelf Drilling International Holdings Ltd. 1.32
Altice Financing S.A. 1.23
Valeant Pharmaceuticals International 1.21

Credit Exposure*

(as of 3/31/2014)
label value
Baa/BBB 0.5%
Ba/BB 17.6%
B 63.7%
Caa/CCC or lower 12.8%
Not Rated 5.0%
Cash & Cash Offsets 0.3%

Credit exposure is the credit ratings for the underlying securities of the Fund as provided by Standard and Poor's or Moody's Investors Service and typically range from AAA/Aaa (highest) to C/D (lowest). If Moody's and S&P assign different ratings, the lower rating is used. Securities that are not rated by either agency are listed as "Not Rated." Ratings do not apply to the Fund itself or to Fund shares. Ratings may change.

Asset Class Exposure (%)
Sectors 12/31/2013 Fund 3/31/2014 Benchmark13/31/2014 UNDERWEIGHT / OVERWEIGHT -750 75
  Bank Loans 74.2 75.7 0.0
Overweight 100.0%
  High Yield Credit 11.2 10.6 0.0
Overweight 13.333333333333332%
  Developed Non-US Dollar Denominated 10.2 10.4 0.0
Overweight 13.333333333333332%
  Equities 2.8 2.5 0.0
Overweight 2.6666666666666665%
  Emerging Market Debt 0.5 0.5 0.0
Overweight 0.0%
  Cash & Cash Offsets 1.0 0.3 0.0
Overweight 0.0%
Distributions and Capital Gains
Distribution Date Distribution NAV Long-Term Capital Gain Short-Term Capital Gain Return of Capital Dividend Income Distribution Total
3/31/2014 10.75 0.0000 0.0000 --- 0.0394 0.0394
2/28/2014 10.75 0.0000 0.0000 0.0000 0.0350 0.0350
1/31/2014 10.73 0.0000 0.0000 0.0000 0.0372 0.0372
12/31/2013 10.70 0.0000 0.0000 0.0000 0.0406 0.0406
12/13/2013 10.69 0.0083 0.0223 0.0000 0.0000 0.0306
11/29/2013 10.71 0.0000 0.0000 0.0000 0.0395 0.0395
10/31/2013 10.70 0.0000 0.0000 0.0000 0.0390 0.0390
9/30/2013 10.62 0.0000 0.0000 0.0000 0.0386 0.0386
8/30/2013 10.62 0.0000 0.0000 0.0000 0.0417 0.0417
7/31/2013 10.69 0.0000 0.0000 0.0000 0.0436 0.0436
6/28/2013 10.57 0.0000 0.0000 0.0000 0.0407 0.0407
5/31/2013 10.73 0.0000 0.0000 0.0000 0.0372 0.0372

Past Dividend Distributions are not indicative of future results.

Insights & Research

Please enter valid numeric input.

Derivatives Risk: Investments in derivatives can be volatile. Potential risks include currency risk, leverage risk (the risk that small market movements may result in large changes in the value of an investment), liquidity risk, index risk, pricing risk, and counterparty risk (the risk that the counterparty may be unwilling or unable to honor its obligations).

Fixed-Income Risk: The Fund is subject to interest-rate risk (the risk that the value of an investment decreases when interest rates rise) and credit risk (the risk that the issuing company of a security is unable to pay interest and principal when due) and call risk (the risk that an investment may be redeemed early).

Foreign Investment Risk: Foreign investments can be riskier than U.S. investments. Potential risks include currency risk that may result from unfavorable exchange rates, liquidity risk if decreased demand for a security makes it difficult to sell at the desired price, and risks that stem from substantially lower trading volume on foreign markets.

Junk-Bond Risk: Investments in junk bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities.

Loan Risk: The Fund’s investments in loans may at times become difficult to value and highly illiquid; they are subject to credit risk such as nonpayment of principal or interest, and risks of bankruptcy and insolvency.

Market, Selection, and Strategy Risk: The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. If the sub-adviser’s investment strategy does not perform as expected, the Fund could underperform its peers or lose money. There is no guarantee the Fund will achieve its stated objective.

Non-Diversified Risk: The Fund is non-diversified, so it may be more exposed to the risks associated with individual issuers than a diversified fund.

Floating Rate High Income Fund should not be considered an alternative to CDs or money market funds. This Fund is for investors who are looking to complement their traditional fixed-income investments.

Unsub SEC Yield is the Fund’s 30-Day SEC yield without the impact of fee/expense waivers.

30-Day SEC Yield represents the hypothetical net investment income earned by the fund over a 30-day period, expressed as an annual percentage rate based on the fund’s share price at the end of the 30-day period. This hypothetical income will differ (at times significantly) from the fund’s actual experience; income distributions from the fund may be higher or lower than implied by the SEC yield.

Average Days to Reset is the average number of days before the portfolio’s bank loans change their interest rate to match their reference rate, typically LIBOR.

Effective Duration is a measure of the sensitivity of an asset or portfolio’s price to nominal interest rate movement.

Years to Worst is the average time until the earliest date when the principal of the bond can be repaid.

 

All mutual funds are subject to risk, including possible loss of principal. This material must be preceded or accompanied by a current prospectus, which contains detailed information about the Fund, including investment objectives, risks, charges, and fees. Investors should read it carefully before investing.

113485