City Beverages Enrollment - Web Book - Ready - Flipbook - Page 59
Word about risk continued
Issuers of sovereign debt or the governmental
authorities that control repayment may be unable or
unwilling to repay principal or interest when due, and
the Fund may have limited recourse in the event of
default. Without debt holder approval, some
governmental debtors may be able to reschedule or
restructure their debt payments or declare moratoria
on payments.
The risks of investing in securities of foreign issuers
can include fluctuations in foreign currencies, political
and economic instability, and foreign taxation issues.
The Fund may hold illiquid securities that it may be
unable to sell at the preferred time or price and could
lose its entire investment in such securities. For wrap
agreements purchased by the Fund, there is no active
market and the sale of such agreements is not an
available option for satisfying withdrawal requests.
Plans and plan participants are subject to liquidity risk
due to various withdrawal restrictions relating to the
Fund, see Article VI Section 9 of the Declaration of
Trust.
The Fund is suitable for long-term investors and
should not be viewed as a short-term investment
vehicle. Moreover, an investment in the Fund is not
intended to provide a complete or balanced
investment program. The Fund may also be unable to
convert its investments on a timely basis without
substantial reductions in prices to meet withdrawal
requests.
Mortgage- and asset-backed securities are subject to
prepayment or call risk, which is the risk that the
borrower’s payments may be received earlier or later
than expected due to changes in prepayment rates on
underlying loans. Securities may be prepaid at a price
less than the original purchase value.
Managers’ individual investing styles may not
complement each other, which can result in higher
portfolio turnovers, enhanced/reduced concentrations
or investing style compared with an investment with a
single manager.
Municipal securities are subject to the risk that
legislative or economic conditions could affect an
issuer’s ability to make payments of principal and/ or
interest.
The Fund may invest in an investment vehicle, such as
a private investment or commingled fund; as a result,
the fund is subject to the underlying risks of that
investment.
Obligations issued by US Government agencies and
instrumentalities may receive varying levels of support
from the government, which could affect the fund’s
ability to recover should they default.
The Fund is not a mutual fund or any other type of
Investment Company within the meaning of the
Investment Company Act of 1940, as amended, and
is not subject to regulation thereunder.
Dollar roll transactions involve the risk that the market
value and yield may decline below the price of the
mortgage-related securities that have been sold and
are required to be repurchased
To Be Announced transactions involve the risk that
the securities received may be less favorable than
what was anticipated by the Fund when entering into
the transaction or that a counterparty will fail to
deliver the security, exposing the fund to further
losses. Whether or not the fund takes delivery of the
securities at the termination date of a To Be
Announced transaction, the fund will be exposed to
changes in the value of the underlying investments
during the term of the agreement
Pursuant to CFTC Rule 4.5, the Trustee is exempt
from having to register as a commodity pool operator
but will comply with the requirements thereof.
Although not required by Trustee, all participating
trusts will receive a copy of the Declaration of Trust
and annual report for the Fund.
The Fund is subject to certain other risks. Please see
the Declaration of Trust for more information
regarding the risks associated with an investment in
the Fund.
Portfolio composition
Asset Allocation
% TNA
g
g
g
g
Short Term Investments**
5.14
Short Duration Investments 45.14
Intermediate Investments
29.88
Core Investments
19.85
Manager Diversification
g
g
g
g
g
g
% TNA
Short Term Investments**
Invesco
Loomis Sayles
Jennison
PIMCO
Dodge & Cox
5.14
60.02
9.97
9.95
9.93
4.98
Portfolio composition statistics are subject to change
and current holdings may differ. It should not be
assumed that any of the holdings discussed were or
will prove to be profitable, or that the investment
recommendations or decisions we make in the future
will be profitable or will equal the investment
performance of the holdings.
Sector Allocation
Short Term Investments**
U.S. Treasuries Securities
U.S. Government Agencies
Non-US Govt/Agency
Corporate Bonds
Mortgage Backed Securities
Asset Backed Securities
Commercial Mortgage Backed
Securities
Municipal
Derivatves
Total
% TNA
1.79
25.62
0.87
0.02
23.89
21.77
19.68
6.21
0.10
0.05
100.00
Quality Allocation***
Short Term Investments**
AAA
AA
A
BBB
