Program Strategies

Program Portfolios^® strategies are based on an underlying Program Model that utilizes filters called Bond Types, not specific securities. Bond Types are a collection of attributes such as product type, duration, yield, maturity, rating and over 90 additional attributes used to evaluate and compare bonds. Bond Types are used during the portfolio construction and maintenance process to select bonds that have similar structural and risk characteristics to the parameters defined for the investment strategy. A specified number of bonds must be purchased for each Bond Type in the Program Model. As a result, the bonds held in a portfolio constructed using the Program Model may differ from investor to investor. BondWave Advisors offers a number of pre-defined Program Portfolios strategies, as described below.

Custom strategies may also be defined according to your firm’s desired fixed income investment approach.

Risk Considerations

An investment in bonds should be made with an understanding of the risks involved, such as interest rate risk, inflation, economic recession and the possible deterioration of either the financial condition of the issuers or the general condition of the bond market. You should be aware that portfolios constructed using the program are comprised of bonds which involve additional risks. You should consider the portfolio’s investment objectives, risks, and charges and expenses carefully before investing. Contact your financial advisor before investing.

The strategies do not guarantee future correlation to the stated objective or underlying index, nor should they be used as a predictor of future returns. There can be no assurance the Program Portfolios^® strategies will match or outperform a given index or sampling over any time period or that it will have positive results. The strategies have a potential for loss.