Mutual Funds – Domestic Fixed Income Style Definitions

CAI Mutual Fund Defensive Style
Managers whose objective is to minimize interest rate risk by investing only in short- to intermediate-term securities. The average portfolio maturity is typically two to five years.

CAI Mutual Fund Intermediate Style
Managers whose objective is to lower interest rate risk by investing only in intermediate-term securities. The average portfolio maturity is typically five to seven years.

CAI Mutual Fund Core Bond Style
Managers who construct portfolios to approximate the investment results of the Lehman Brothers Government/Corporate Bond Index with a modest amount of variability in duration around that index. The objective is to achieve value-added from sector or issue selection.

CAI Mutual Fund Extended Maturity Style
Managers whose average portfolio maturity is greater than that of the Lehman Brothers Government/Corporate Bond Index. Variations in bond portfolio characteristics are made to enhance performance results.

CAI Mutual Fund High Yield Style
Managers whose investment objective is to obtain high current income by investing in lower rated, higher default-risk fixed income securities. As a result, security selection focuses on credit risk analysis.

CAI Mutual Fund Mortgage Backed Style
Mutual funds typically composed of Mortgage-Backed Securities, Asset-Backed Securities, CMOs, IOs, POs, along with short-term investments. Funds may also contain a small percentage of U.S. Treasuries.