Income Fund (SOAIX)
Seeks high current income.
The Income Fund seeks to achieve its investment objective by investing, under usual circumstances, at least 80% of its assets in a portfolio of taxable municipal bonds, income producing convertible securities, preferred stock, high yield U.S. corporate bonds, and collateralized mortgage obligations. The Income Fund may also invest in U.S. government agency securities.
An investment in the Income Fund may be suitable for intermediate to long-term investors who seek high current income. Investors should be willing to accept the risks and potential volatility of such investments.
This fund holds 223 positions in the following categories:
Fund Symbol: SOAIX
Inception Date: 12/31/2008
Net Assets: $131.1 million
Dividend Frequency: Monthly
Net Expense Ratio:* 1.11%
*The adviser has contractually agreed
to waive advisory fees and/or reimburse expenses for the Income Fund until
April 30, 2021.
The Fund has holdings in 33 states, and
Ratings apply to the bonds in the portfolio, excluding common stock and cash which do not carry a rating. They do not remove market risk associated with the fund.
Bond ratings apply to underlying holdings of the
Fund and not the Fund itself. The portfolio is rated by Moody’s Investor Services and Standard & Poors (S&P). In determining the percentage breakdown of credit ratings of the bonds in the portfolio, the higher of the two ratings is taken thus improving the overall evaluation of the portfolio.
Moody’s assigns bond credit ratings ranging from highest to lowest of Aaa, Aa, A, Baa, Ba, Caa, Ca, C, with WR and NR as withdrawn and not rated. S&P assigns bond credit ratings from highest to the of AAA, AA, A, BBB, BB, B, CCC, CC, C, D.
Ratings are subject to change.
Top Holdings by Percentage
Tobacco Settlement Financing Corporation, 6.71% 6/1/2046
Municipal Electric Authority of Georgia 7.06% 4/1/2057
City of Kansas City, MO, Revenue Bonds, 7.83%, 4/1/2040
Health Care Authority for Baptist Health, 5.50%, 11/15/2043
Port Authority New York & New Jersey 3.92% 10/15/2028
Michigan Tobacco Settlement Finance Authority, (OID), 7.31%, 6/1/2034
MetLife, Inc., 9.25%, 4/8/2038
State of Georgia, Public Improvements, 3.84%, 2/1/2032
Tobacco Settlement Finance Authority, 7.47%, 6/1/2047
Township of Brick, NJ, 3.75%, 9/1/2028
Source: Ultimus Fund Solutions, LLC 9/30/20
Principal Risks of Investing in the Income Fund: An investment in the Income Fund could lose money over short or long periods of time. You should expect and be able to bear the risk that the Income Fund’s share price will fluctuate within a wide range. There is no assurance that the Income Fund will achieve its investment objective. The Income Fund’s performance could be adversely affected by the following principal risks:
Interest Rate Risk, which is the possibility that overall bond prices will decline because of rising interest rates.
Credit Risk, which is the possibility that the issuer of a bond will fail to pay interest and principal in a timely manner, or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline.
Credit Risks of Lower-Grade Securities, which is the possibility that bonds rated below investment grade, or unrated of similar quality (i.e., “junk bonds”), may be subject to greater price fluctuations and risks of loss of income and principal than investment-grade securities.
Call Risk, which is the possibility that during periods of falling interest rates, issuers of callable bonds may call (redeem) higher coupon rate bonds before their maturity dates.
Risks of CMOs, which is the possibility that the Income Fund will be less likely to receive payments of principal and interest, and will be more likely to suffer a loss, if there are defaults on the mortgage loans underlying the CMOs.
Investing in MLPs involves risks related to limited control and limited rights to vote on matters affecting the MLP, risks related to potential conflicts of interest between the MLP and the MLP’s general partner, cash flow risks, dilution risks and risks related to the general partner’s limited call right, as described in more detail in the prospectus.
Dividend Risk, which is the risk that there can be no assurance that a dividend-paying company will continue to make regular dividend payments.
There are risks inherent in investing. Past performance is no guarantee of future results.
Offering by prospectus only. Investors are advised to consider the Fund’s investment objectives, risks, charges and expenses before investing.
The prospectus contains this and other information about the investment company. Read the prospectus carefully before you invest or send money.
Neither the information, nor any statement expressed or implied herein, constitutes solicitation by David Lerner Associates, Inc. for the purchase or sale of any securities. For complete information regarding performance data current to the most recent month end and to obtain a prospectus, contact:
David Lerner Associates, Inc., 477 Jericho Turnpike, P.O. Box 9006, Syosset, New York 11791-9006, 1-800-367-3000. Member FINRA & SIPC.