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Wasmer Schroeder

Wasmer Schroeder High Yield Municipal Fund

Doing Fixed Income Right. Together.

Overview

The Fund’s principal strategy focuses on medium- to lower-credit quality municipal securities. Under normal market conditions, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in municipal securities that pay interest not subject to regular federal income tax. Some of these investments in municipal securities may pay interest that is not exempt from the federal alternative minimum tax (“AMT”).

 

Objective

The investment seeks to generate a high level of interest income that is not subject to federal income tax.

 

Fund Manager

Jason D. Diefenthaler, Director of Tax Exempt Portfolio Management of the Adviser, is responsible for the day-to-day management of the Fund’s portfolio. Mr. Diefenthaler holds a B.S. in Finance from Florida State University, is a member of the National Federation of Municipal Analysts, a member of Leadership Collier Foundation Alumni AssociationTM, and is a member of the Southern Municipal Finance Society. Mr. Diefenthaler has been responsible for the Advisor’s high yield portfolio management and research responsibilities since 2003.

 

Fund Facts

1 Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1.855.WSC.MUNI. The Fund imposes a 1.00% redemption fee on shares held for 60 days or less. Performance data does not reflect the redemption fee. If it had, return would be reduced. Click on Performance tab above to view standardized performance.
Index information is sourced from www.BarclaysLive.com. 

2 Definition of Fund Characteristics: 30-Day SEC Yield is percentage return expressed on an annualized basis that reflects the dividends and interest earned by the fund net of expenses for the 30-day period as of the report date. Duration to Worst is computed to the redemption date which would provide the lowest yield (for callable bonds) or highest yield (for putable bonds). For securities without calls or puts, Duration to Worst is calculated to maturity. Average Maturity is the weighted average maturity of the securities in the portfolio, expressed in years. Average Coupon is the weighted average coupon of the securities held in the portfolio. Average Bond Price is the weighted average bond price of the securities held in the portfolio. A Callable Bond is a bond that can be redeemed by the issuer prior to its maturity. A Putable Bond is a bond that allows the holder to force the issuer to repurchase the security at specified dates before maturity.

3 The Bloomberg Barclays Municipal High Yield Bond Index & Municipal Index are rules‐based, market‐value‐weighted indices. Bonds eligible for High Yield Index inclusion must have a credit quality classification of Ba1/BB+ or lower or be unrated or nonrated by all three agencies; bonds must have a minimum rating of Baa3/BBB‐ to be eligible for the Municipal Index. They must have an outstanding par value of at least $3 million and be issued as part of a transaction of at least $20 million. The bonds must have a dated‐date after December 31, 1990 and must be at least one year from their maturity date. It is not possible to invest in an index.

Past performance is no guarantee of future results.

Performance

 

Performance History (%)1

1 Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1.855.WSC.MUNI. The Fund imposes a 1.00% redemption fee on shares held for 60 days or less. Performance data does not reflect the redemption fee. If it had, return would be reduced. Click on Performance tab above to view standardized performance. The Fund’s gross expense ratio is 0.73%.
Index information is sourced from www.BarclaysLive.com.  The Fund’s Inception Date is 3/31/2014. Periods over 1 year are annualized.

2 The Bloomberg Barclays Municipal High Yield Bond Index & Municipal Index are rules‐based, market‐value‐weighted indices. Bonds eligible for High Yield Index inclusion must have a credit quality classification of Ba1/BB+ or lower or be unrated or nonrated by all three agencies; bonds must have a minimum rating of Baa3/BBB‐ to be eligible for the Municipal Index. They must have an outstanding par value of at least $3 million and be issued as part of a transaction of at least $20 million. The bonds must have a dated‐date after December 31, 1990 and must be at least one year from their maturity date. It is not possible to invest in an index.

Portfolio

Fund Sector Allocation vs. Benchmark1

Duration Range2

Credit Ratings2

Top 10 Bond Holdings2

1 The Bloomberg Barclays Municipal High Yield Bond Index & Municipal Index are rules‐based, market‐value‐weighted indices. Bonds eligible for High Yield Index inclusion must have a credit quality classification of Ba1/BB+ or lower or be unrated or nonrated by all three agencies; bonds must have a minimum rating of Baa3/BBB‐ to be eligible for the Municipal Index. They must have an outstanding par value of at least $3 million and be issued as part of a transaction of at least $20 million. The bonds must have a dated‐date after December 31, 1990 and must be at least one year from their maturity date. It is not possible to invest in an index.

2 General Obligation Bonds are backed by the full faith and credit of the issuing jurisdiction; Revenue Bonds are backed by identifiable sources of dedicated revenue. Credit ratings are determined by using the middle rating of Moody’s, S&P and Fitch, and the lowest rating when fewer than three ratings are assigned. Ratings are measured on a scale that generally ranges from AAA (Highest) to D (Lowest); Not Rated indicates the debtor was not rated and should not be interpreted as indicating low quality. Fund holdings and allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security.

Advisor

Wasmer Schroeder is an independent and employee‐owned investment adviser, specializing in fixed income separate account portfolio management for wealth management groups, institutions, including foundations, endowments and retirement plans, and high net worth individuals. The Firm has $8.89 billion in total assets under management, as of 12/31/2018. Wasmer Schroeder takes a collaborative approach with due diligence teams, analysts and advisors to provide taxable and tax exempt fixed income portfolio solutions to uncover opportunities and incremental value. The Firm’s corporate headquarters are in Naples, Florida, where the Tax Exempt Portfolio Management Team, Research, Client Services, Operations, IT, Accounting, Compliance, Marketing and Administration are located. Our Taxable Portfolio Management Team is located in Cleveland, Ohio. Client Relationship offices are located in Exton (Philadelphia area), Pennsylvania; New York, New York; and Portland, Oregon. To learn more, visit our website.

Risk

The fund may invest in lower-quality debt securities that involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. The municipal market can be affected by adverse tax, legislative or political changes and the financial condition of the issuers of municipal securities. Municipal funds carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) They also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible. Although national municipal funds seek to provide interest dividends exempt from federal income taxes and some of these funds may seek to generate income that is also exempt from the federal alternative minimum tax, outcomes cannot be guaranteed, and the funds may generate some income subject to these taxes. Income from these funds is usually subject to state and local income taxes. Generally, municipal securities are not appropriate for tax-advantaged accounts such as IRAs and 401(k)s. Additional risk information for this product may be found in the prospectus or other product materials, if available.

 

Additional Disclosures

This description is only intended to provide a brief overview of the mutual fund. Read the fund’s prospectus for more detailed information about the fund.