First Foundation Funds
Fixed Income Fund
The First Foundation Fixed Income Fund seeks to provide maximum income consistent with prudent investment management and the preservation of capital.
Note: First Foundation Advisors (FFA) serves as the Sub-Advisor to the Funds and Brookmont Capital Management serves as the Advisor.
If you are an investor in the former Highland Funds please call 800-838-0191 to receive account specific information.
Report of Organizational Actions Affecting Basis of Securities
Disclaimer: The information contained in Form 8937 and the related attachment does not constitute tax advice and does not purport to take into account any Fund holder’s specific circumstances. Fund holders are urged to consult their own tax advisors regarding U.S. tax consequences of the transaction described herein and the impact to tax basis resulting from the transaction.
Fund Overview
INVESTMENT OBJECTIVE
The Fixed Income Fund seeks to provide maximum income consistent with prudent investment management and the preservation of capital.
ACCESS TO INSTITUTIONALLY MANAGED FIXED INCOME
- A total return strategy combining top-down positioning with fundamental, bottom-up issue selection managed within a disciplined risk framework
- The Fund invests primarily in a variety of investment-grade debt securities, such as mortgage-backed securities, corporate bonds, U.S. Government Securities and money market instruments. The Fund normally has a weighted average maturity of approximately 5 to 10 years.
- Top-down yield curve positioning and sector allocation
- Bottom-up bond selection
- Long-term investment horizon
Investment returns and principal value will fluctuate so that an investor’s shares when redeemed may be worth more or less than their original cost.
Please consider the investment objectives, risks, charges and expenses of First Foundation Funds carefully before investing. A full or summary prospectus with this and other information about the mutual funds can be found on the Literature tab above. You may also obtain a prospectus for our mutual funds by calling 800-838-0191. Please read the prospectus carefully before investing.
Securities Market Risk. The value of the securities may go up or down, sometimes rapidly or unpredictably, due to factors affecting particular companies or the securities market generally. A general downturn in the securities market may cause multiple asset classes to decline in value simultaneously, although equity securities generally have greater price volatility than fixed income securities.
Interest Rate Risk. The risk that fixed income securities will decline in value because of changes in interest rates. A fund with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration.
Credit Risk. The risk that the Fund could lose money if the issuer or guarantor of a fixed income security, or the counterparty of a derivatives contract or repurchase agreement, is unable or unwilling (or is perceived to be unable or unwilling) to make a timely payment of principal and/or interest, or to otherwise honor its obligations.
Prepayment Risk. The risk that during periods of falling interest rates, issuers of debt securities may repay higher rate securities before their maturity dates. This may cause the Fund to lose potential price appreciation and be forced to reinvest the unanticipated proceeds at lower interest rates.
Mortgage-Back Securities Risk. The risk of investing in mortgage-backed securities, and includes interest rate risk, prepayment risk and the risk that the fund could lose money if there are defaults on the mortgage loans underlying these securities.
Foreign Investment Risk. The risk that investing in foreign (non-U.S.) securities may result in the Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, nationalization, expropriation or confiscatory taxation, currency blockages and political changes of diplomatic developments. The cost of investing in many foreign markets are higher than the U.S. and investments may be less liquid.
Currency Risk. The risk that the values of foreign investments may be affected by changes in the currency rates or exchange control regulations. If a foreign currency weakens against the U.S. dollar, the value of a foreign investment denominated in that currency would also decline in dollar terms.
High Yield Securities Risk. The risk that high yield securities or unrated securities of similar credit quality are more likely to default than higher rated securities. The market value of these securities is more sensitive to corporate developments and economic conditions and can be volatile. Market conditions can diminish liquidity and make accurate valuations difficult to obtain.
Asset Backed Securities Risk. The risk of investing in asset-backed securities, and includes interest rate risk, prepayment risk and risk that the Fund could lose money if there are defaults on the loans underlying these securities.
Derivatives Risk. The risk that an investment in derivatives may not correlate completely to the performance of underlying securities and may be volatile, and may result in a loss greater than the principal amount invested. Equity derivatives may also be subject to liquidity risk as well as the risk the derivative may be different than what would be produced through the use of another methodology or if it had been priced using market quotations.
Note: First Foundation Advisors (FFA) serves as the Sub-Advisor to the Funds and Brookmont Capital Management serves as the Advisor.
First Foundation Funds’ mutual funds are distributed by SEI Investments Distribution Co., which is not affiliated with the Sub-Advisor, Advisor or any of its affiliates.
There is no guarantee the objectives will be achieved. Investing involves risk, including possible loss of principal.
Please consider the investment objectives, risks, charges and expenses of the First Foundation Funds carefully before investing. Full and summary prospectuses with this and other information about the Funds can be found on the Funds' pages. Please read the prospectus carefully before investing.