The Harvest Funds Intermediate Bond: A Flexible Portfolio Alternative

In our challenging and dynamic market environment, what do we believe are the best income investments for a portfolio? By seeking to redefine the intermediate-term bond mutual fund, Harvest is able to offer a proprietary income strategy: the Harvest Funds Intermediate Bond.  This flexible income strategy has a variety of practical portfolio applications.

A number of innovative and high profile family offices and investment advisors have already become Harvest clients.  The Fund’s value proposition includes offering a diversifying source of income while balancing the risk and liquidity of the investments.  The One Percenter Strategy™ initially samples the Harvest Funds Intermediate Bond with a limited portfolio allocation.

 

Potential Benefits of the Fund

The Fund potentially offers a client’s portfolio the following value propositions:

  • Monthly income
  • Low volatility
  • Liquidity
  • Short / intermediate duration
  • Potential for capital appreciation
  • Diversification to non-US corporate credits

 

Investment Objective

The Fund seeks to generate long-term total return through a combination of capital appreciation and current income.

The Fund seeks to achieve its objective by investing, under normal market conditions, at least 80% of its net assets in a portfolio of fixed income securities.  The Fund's investments will primarily be fixed income securities issued by corporations and governments, including the agencies and instrumentalities of governments in China and the Asian region, denominated in U.S. dollars and Renminbi.  A portion of the Fund’s underlying securities are non-rated or non-investment grade.

 

HXIIX Strategy Overview

Investment Markets
  • USD bonds issued by Chinese issuers
  • Dim Sum bonds (Renminbi bonds)
  • Other Asian bond exposures
  • 25% - 35% high yield exposure
Target Average Duration
  • 3 – 5 years

 

HXIIX Performance

For the most recent Monthly Performance Report (3/31/2017), HXIIX returned 0.95% in March 2017, compared to the Benchmark return of 0.22%.  Since inception, HXIIX has an annualized return of 6.06% compared to the Benchmark of 4.48%.

Benchmark

50% J.P. Morgan Asia Credit - Hong Kong Total Return Index
50% J.P. Morgan Asia Credit - China Total Return Index

Performance vs. Benchmark as of 3/31/2017

The performance data quoted represents past performance and 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, and current performance may be higher or lower than the performance shown. A short term trading fee of 1.50% may apply to redemptions if shares redeemed have been held for less than 90 days. Performance does not reflect this redemption fee.  Shareholders who are charged a redemption fee would have lower account performance; however, the Fund's overall performance could be increased due to the collection of redemption fees.

Inception Date: February 27, 2013

Gross expense ratio: 1.47%, net expense ratio: 0.88%. The advisor has contractually agreed to reduce fees and reimburse expenses until April 30, 2017. In the absence of current fee reductions, performance would be reduced.

Growth of $10K vs. Benchmark as of 3/31/2017

The J.P. Morgan Asia Credit Index (JACI) tracks total return performance of the Asia fixed- rate dollar bond market. JACI is a market cap-index comprising of sovereign, quasi-sovereign and corporate bonds. The Fund’s benchmark index is comprised of 50% JACI Hong Kong Total Return and 50% JACI China Total Return. The benchmark index returns do not reflect any management fees, transaction costs or expenses. Investors cannot invest directly in an index.

 

Learn More

Find out how the HXIIX can meet your portfolio objectives. Please contact Simon Arrata, Harvest USA’s CEO and the key architect of the fund's approach and strategy. Mr. Arrata is available by email or by phone at 1-917-696-3678.

 

Important Risks

Mutual fund investing involves risk, including possible loss of principal. There can be no assurance that the Fund will achieve its stated objectives. Bond and bond funds will decrease in value as interest rates rise. The Fund focuses its investments primarily with Chinese issuers and issuers with economic ties to China. The Fund is subject to political, social or economic instability within China which may cause decline in value. Fluctuations in currency of foreign countries may have an adverse affect to domestic currency values. Emerging markets involve heightened risk related to the same factors as well as increase volatility and lower trading volume. The Fund uses derivative instruments. The primary risk of derivative instruments is that changes in the market value of securities held by the fund and of the derivative instruments relating to those securities may not be proportionate. Derivatives are also subject to illiquidity and counterparty risk. High yield bonds involve greater risk of default or downgrade and are more volatile than investment grade securities, due to the speculative nature of their investments. Current and future holdings are subject to risk. There can be no assurance that the fund will achieve its stated objective. Fund may not be suitable for all investors. Diversification may not protect against market risk.

To determine if the Fund is an appropriate investment for you, carefully consider the funds investment objectives, risk, and charges and expenses. This and other information can be found in the funds full or summary prospectus which can be obtained by calling 1-917-696-3678. Please read the prospectus carefully before investing.

The Harvest Funds are distributed by SEI Investments Distribution Company, 1 Freedom Valley Drive, Oaks, PA 19456. SEI is not affiliated with Harvest Global Investments Limited, the Investment Adviser for the Fund. Check the background of SEI Investments Distribution Co. on FINRA’s BrokerCheck.

Not FDIC insured | May Lose Value | No Bank Guarantee

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