NEW YORK--(BUSINESS WIRE)--On 10/18/2016, Ladder Capital Asset Management LLC (“LCAM”) launched the Ladder Select Bond Fund (“Fund”), and after the ﬁrst three years, it has generated risk-adjusted returns in the top quartile within the Morningstar Short-Term Bond Category.
“We are honored to receive the ‘4 Star’ Morningstar rating for the three-year period,” says Brian Harris, CEO of Ladder Capital Corp (NYSE: LADR). “This recognition highlights our team’s knowledge of commercial real estate and our ability to deliver high quality, risk adjusted returns via a ‘40 Act vehicle.”
“The Fund oﬀers a uniquely positioned no-load mutual fund with a senior secured CRE investment strategy. Our portfolios are designed to deliver income with a consistent focus on capital preservation by implementing a bottom-up credit approach that carefully analyzes the risk characteristics of each security,” explains Craig Sedmak, Portfolio Manager and Managing Director.
The Ladder Select Bond Fund oﬀers an Institutional Class (LSBIX) and is available for purchase at various custodians including: Charles Schwab, TD Ameritrade and Pershing.
1About Morningstar, Inc and the Star Rating System
The Morningstar Rating TM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance ﬁgures associated with its three-, ﬁve-, and 10-year (if applicable) Morningstar Rating metrics. LSBIX received 4 out of 5 stars, for the 3-year period ending on 10/31/2019.
©2019 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Morningstar® Short-Term Bond Category: Short-term bond portfolios invest primarily in corporate and other investment-grade U.S. ﬁxed-income issues and typically have durations of 1.0 to 3.5 years. These portfolios are attractive to fairly conservative investors, because they are less sensitive to interest rates than portfolios with longer durations. Morningstar calculates monthly breakpoints using the eﬀective duration of the Morningstar Core Bond Index in determining duration assignment. Short-term is deﬁned as 25% to 75% of the three-year average eﬀective duration of the MCBI.
Mutual fund investing involves risk. Principal loss is possible.
Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will ﬂuctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund. This information and other important information about the Fund is contained in the Prospectus, which can be obtained by calling Shareholder Services at 888-859-5867 or by clicking here. The Prospectus should be read carefully before investing.
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Investments in mortgage-backed securities, asset-backed securities and other structured ﬁnance instruments include additional risks that investors should be aware of, such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. The Fund will concentrate its investments in commercial mortgage-backed securities (“CMBS”) and, therefore, will be subject to the risks associated with these securities, including risks associated with the underlying mortgages, to a greater degree than a fund that does not concentrate in such securities. Investments in non-investment grade and unrated securities presents a greater risk of loss to principal and interest than higher-rated securities. Derivatives involve risks diﬀerent from and, in certain cases, greater than the risks presented by more traditional investments. Investments in non-investment grade and unrated securities, derivatives, and restricted securities tend to involve greater liquidity risk. The Fund is non-diversiﬁed and, therefore, may be more susceptible to being adversely aﬀected by a single corporate, economic, political or regulatory occurrence than a diversiﬁed fund. Any use of leverage by the Fund may exaggerate the eﬀect of any increase or decrease in the value of securities in the Fund’s portfolio on the Fund’s Net Asset Value and, therefore, may increase the volatility of the Fund. The Fund is new and the Fund’s investment adviser has not previously served as investment adviser to a registered investment company. For more information on these risks and other risks of the Fund, please see the Prospectus.
Comments or complaints regarding the Ladder Select Bond Fund should be mailed to the Ladder Select Bond Fund, c/o Ladder Capital Corp, 345 Park Avenue, 8th ﬂoor, New York, NY 10154, or call (888) 859-5867.
Ladder Select Bond Fund is distributed by Ultimus Fund Distributors, LLC.
Not FDIC Insured
May Lose Value
Not Bank Guaranteed