Johnson Core Plus Bond Fund

Fact Sheet All Fund Documents

The goal of our Core Plus Bond Fund is to outperform the Bloomberg US Aggregate Bond Index over a full market cycle. Since the fixed income portion of a portfolio also serves as a risk diversifier to equity volatility, we believe it is essential to manage downside risk while pursuing consistent, long-term returns. Our disciplined process seeks to consistently outperform the Bloomberg US Aggregate Bond Index without incurring unnecessary risks in the portfolio over time. Our objective is to deliver positive excess returns with comparable overall volatility to the market and robust downside risk management during difficult market periods.

Strategy Overview

Our primary objective across our suite of duration mandates is to outperform the market with comparable volatility by utilizing our proprietary quality-yield approach and the deep experience and continuity of our investment team.

Investment Philosophy

Johnson believes that bonds should offer investors reliability, especially during periods of economic and market stress. We believe combining both Quality and Yield may contribute to superior risk-adjusted returns. As a result, our strategy employs a quality yield approach.

Portfolio Overview

The cornerstones of our approach are to emphasize investment grade, non-government securities and capture the slope of the yield curve, focusing on building portfolios designed to seek yield advantage over the benchmark. The Core Plus portfolio will also include non-investment grade securities for yield and total return enhancement. Investment decisions are made with respect to sector allocation, maturity structure and issue selection that capture the relative value of the bond market for client portfolios.

Investment Guidelines

  • Benchmark: Bloomberg US Aggregate Bond Index
  • High-quality BB/B rated corporates to enhance portfolio yield
  • Overweight high-quality corporate bonds
  • Duration between 80% and 120% of benchmark
  • Expected annual turnover between 20%-40%
  • Treasury futures for duration management

Meet the Portfolio Managers

Fixed Income

We implement our proprietary Quality Yield investment approach across our suite of duration mandates with the objective of outperforming the market while maintaining a focus on downside risk management and comparable volatility.

Equity

Johnson Asset Management offers both enhanced return index capabilities and active equity solutions. We implement a repeatable and disciplined process that seeks to optimize return per unit of risk.

Mutual Funds

Johnson Asset Management’s Fixed Income and Equity solutions are accessible through our competitively priced mutual funds, which we have been providing institutional clients since 2000.

Disclaimer:

Investors should consider the investment objectives, risks, charges, and expenses of the Fund(s) before investing. The prospectus contains this and other information about the Fund(s) and should be read carefully before investing. The prospectus may be obtained at www.johnsonmutualfunds.com, or by calling, 800-541-0170, or 513-661-3100. Distributed by Ultimus Fund Distributors, LLC, Member FINRA/SIPC. Johnson Asset Management and Johnson Investment Counsel, Inc, are not a?liated with Ultimus Fund Distributors, LLC.

Investing involves risk including the possible loss of principal. 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.

Diversification does not ensure a profit or guarantee against loss.

Please refer to the prospectus for each fund's specific risks.

Shares in the Fund may ?uctuate, sometimes signi?cantly, based on interest rates, market conditions, credit quality and other factors. In a rising interest rate environment, the value of an income fund is likely to fall. Generally, bond values will decline as interest rates rise. The market’s behavior is unpredictable and there can be no guarantee that the Fund will achieve its goal. The Fund’s performance could be a?ected if borrowers pay back principal on certain debt securities before or after the market anticipates such payments, shortening or lengthening their duration, and could magnify the e?ect of the rate increase on such security’s price. To the extent the Fund invests more heavily in particular bond market sectors, its performance will be especially sensitive to developments that signi?cantly a?ect those sectors. When issued/delayed-delivery securities can have a leverage-like e?ect on the Fund, which may increase ?uctuations in the Fund’s share price and may cause the Fund to liquidate positions when it may not be advantageous to do so to satisfy its purchase obligations. Fixed income investments are a?ected by a number of risks, including ?uctuation in interest rates, credit risk, and prepayment risk. In general, as prevailing interest rates rise, ?xed income prices will fall.

Derivative instruments involve risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments.

The Fund may invest in high yield securities, also known as "junk bonds." High yield securities provide greater income and opportunity for gain, but entail greater risk of loss of principal.

Quality ratings reflect the credit quality of the underlying securities in the Fund's portfolio and not that of the Fund itself. Quality ratings are subject to change. S&P Ratings assigns a rating of AAA as the highest to D as the lowest credit quality rating.

Definitions:

S&P 500 Index: An index of 500 leading U.S. public companies that is commonly used to represent the performance of the large-cap U.S. stock market.

Bloomberg US Intermediate Government/Credit Index: An index of investment-grade U.S. government and corporate bonds with intermediate-term maturities

Bloomberg US Aggregate Bond Index: A broad-based benchmark that measures the performance of the U.S. investment-grade taxable bond market, including government, corporate, mortgage-backed, and asset-backed securities.

ICE BofA US Govt & Corp 1-3 Yr Index: An index that measures the performance of U.S. dollar-denominated investment-grade government and corporate bonds with remaining maturities between one and three years.

Russell 2500 Index: A market capitalization-weighted index that measures the performance of small- and mid-cap U.S. companies, representing approximately the 2,500 smallest companies in the Russell 3000 Index.